American Technology Corp. Announces Allowance of Key Patent; U.S. Patent Office Allows Patent on PureBass Sub-Woofer Technology.

Business Editors/High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--Dec. 12, 2001

American Technology Corp. (Nasdaq:ATCO) today announced the allowance of a key U.S. patent on its PureBass(TM) extended range, band-pass, sub-woofer technology.

PureBass technology incorporates a novel acoustic filter system to reduce distortion while increasing the output capabilities relative to conventional woofer systems. It also provides a unique, seamless interface with all upper range satellite speaker systems. PureBass, originally developed to fill the desire for higher quality low frequency devices to match the company's high performance, Stratified Field(R) and NeoPlanar(TM) thin-film speaker technologies, offers improved performance with a wide variety of loudspeaker types and applications.

Bob Todrank, vice president of sales, marketing, & business development for ATC, said, "PureBass is a breakthrough in sub-woofer technology, enabling the unique ability to improve low frequency performance while simultaneously reducing the system costs for a variety of consumer, commercial, and professional applications. The unique, patented design of PureBass is notable in the category of high powered, cone-based sub-woofer technologies in that its unusually low distortion and impressive stop band behavior allow it to integrate in a surprisingly seamless manner even with highly accurate thin-film planar speaker systems."

Jim Croft, chief technology officer with ATC, continued, "PureBass is a unique offering in the audio field that not only provides significant performance advantages but also increased design flexibility and a multitude of alignment options which enables the new subwoofer system to couple more effectively with all types of upper range satellite speakers. Besides its performance advantages and ideal matching to our high performance thin-film systems, it also enables our licensees to improve the performance and significantly reduce the size and cost of their conventional satellite speaker systems when used with PureBass. Greater output, reduced size, higher reliability, lower distortion, and reduced system cost make this a valuable technology for our prospective licensees."

The company is marketing PureBass technology to OEM manufacturers and prospective licensees for a wide variety of consumer, automotive, commercial, and professional applications. The high quality sound, low distortion, potential for smaller, lower cost satellites, and greater flexibility in room placement while maintaining ideal sound field imaging makes PureBass an ideal complement to high quality home audio systems including Home Theater and Hi-Fi subwoofer/satellite speaker applications. For car audio, PureBass offers compact size, greater acoustic power output, and deep bass. In-wall and custom home installations will benefit from the low distortion, smooth response, and flexible form factor. For professional applications such as large venue and touring sound systems, PureBass provides much greater output capability while removing audible distortion normally found to be problematic in conventional systems when used in high output applications. This distortion reduction is achieved through the use of multiple Helmholtz-reflex tunings to significantly reduce cone excursion and provide a specialized 30+ dB per octave acoustic filtering system.

Todrank added, "With the allowance of this key PureBass patent, we are now aggressively and selectively pursuing the more than 350 licensing inquiries we have received from global companies across all categories of the audio industry including Stereo/Hi-Fi, Home Theater, Automotive, Professional and Commercial, free space and in-wall installations. Sample units are available and have already begun shipping to our prospective customers."

Terry Conrad, president of ATC, commented, "This is one of ATC's most valuable audio-related patents. We are now the recognized owner of the most effective low-frequency reproduction method available for many applications. In addition to the patent coverage in the United States, our extensive worldwide applications will protect the technology abroad in order to ensure revenue when PureBass is manufactured and/or sold anywhere around the world. Prior to the allowance of this patent, the company granted PureBass licenses to three companies; we expect several models under a variety of brand names to enter the marketplace, adding to our revenues in 2002."

About American Technology Corp.

American Technology Corp. is Shaping the Future of Sound(R) by developing and licensing its technology and intellectual property portfolio which includes: the award-winning HSS(TM) (HyperSonic(TM) Sound Technology); Stratified Field(R) Technology; NeoPlanar(TM); PureBass(TM) 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 visit our Web site at www.atcsd.com.

Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: This document contains forward-looking statements relating to future performance, technology and product development that 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 future products and results, 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.