American Technology Appoints HST Inc. as Manufacturer of NeoPlanar Speaker Components.

Business Editors/High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--May 1, 2002

High-Tech Speaker Elements Will Now be Available for Government and

Consumer Products Markets

American Technology Corp. (Nasdaq:ATCO) announced today that it has appointed HST Inc. as a manufacturer of components for its patented NeoPlanar(R) technology for government and consumer products markets.

American Technology's NeoPlanar technology is a revolutionary sound reproduction system employing a special thin film, and a single layer of ultra-thin high-energy neodymium magnets. The most important quality of NeoPlanar loudspeakers is the ability to provide extremely wide band, low distortion performance from a device as thin as 1/8th inch and as light as a few ounces.

American Technology recently announced a Letter of Intent to acquire, in a stock transaction, San Diego-based HST Inc. HST is a rapidly growing, profitable designer and manufacturer of technologically advanced components for branded consumer products.

"Pending the closing of the HST acquisition we intend to move rapidly with HST to create volume production of NeoPlanar components for our contract with Bath Iron Works (BIW), a General Dynamics Company (NYSE:GD) and for several other customers who are not military-related," stated Terry Conrad, president of American Technology. "To date we have been producing NeoPlanar speakers in our Carson City, Nevada development facility. HST allows us to achieve much higher volume production at reduced costs thereby improving our margins and opening new markets."

Conrad added, "HST is producing HyperSonic(R) Sound components and we will commence volume deliveries of HSS systems in early May. HST has demonstrated their ability to apply production science to automate the manufacture of high-tech products. While we previously licensed NeoPlanar technology to Harman International (NYSE:HAR), a major automobile speaker OEM with their own production, until now we have not been positioned to offer volume NeoPlanar components to other OEM markets. Several OEMs have already started to design end-user products around our standard NeoPlanar components."

Tod Boretto, president of HST, commented, "We have been working intensely the last 30 days to design production for NeoPlanar components and we are pleased to formally launch production. We expect to have tooling and production lines in operation within seven weeks. With American Technology engineers, we have designed standard components that can fit in a range of products for markets including government, commercial and consumer products."

The acquisition of HST is subject to a number of preconditions. Provided all conditions are satisfied, the company expects to consummate the transaction by end of its fiscal year ending Sept. 30, 2002. However, there can be no assurance that all conditions will be satisfied or that if satisfied, the transaction will close when expected.

About American Technology Corp.

American Technology is Shaping the Future of Sound(R) by developing and licensing its technology and intellectual property portfolio which includes: the award-winning HSS(R) (HyperSonic(R) Sound Technology); Stratified Field(R) Technology; NeoPlanar(R); PureBass(R) Sub-Woofer Technology; Directed Stick Radiator technology and FM Sounds(TM) consumer radio products. The company is establishing a strong portfolio of patents, trademarks and know-how including over 110 U.S. and Foreign patents and patent filings to date. For more information on the company and its technologies and products please visit our Web site at www.atcsd.com.

About HST Inc.

HST designs and manufactures advanced material components for branded consumer products. Leading customers include Callaway Golf, Ping, Dunlop, Answer Products, Blackhawk, Archery HST has a research staff for the ongoing creation of new components for military, consumer, construction, automotive and other industries. See www.hst-inc.com.

Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: This document contains forward-looking statements relating to future transactions, performance, technology and product development which may affect future results and the future viability of the company. Actual results could be affected or differ materially from those projected in the forward-looking statements as a result of risks and uncertainties, including satisfaction of conditions precedent, development of future products, technological shifts, potential technical difficulties that could delay new products, competition, general economic factors, pricing pressures, the uncertainty of market acceptance of new products and services by OEMs and end-user customers, and other factors identified and discussed in the company's most recent filings with the Securities and Exchange Commission. These forward-looking statements are based on information and management's expectations as of the date hereof. Future results may differ materially from the company's current expectations.

Editor's Note: HyperSonic Sound, HSS, NeoPlanar, Stratified Field, PureBass, FM Sounds, and Shaping the Future of Sound are trademarks or registered trademarks of American Technology Corp. All other company, product, and service names are the property of their respective owners.