American Technology Corp. Announces Navy Projects With Bath Iron Works; ATC's NeoPlanar and Directed Acoustic Technologies Featured in New Military Projects.

Business Editors and High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--April 10, 2002

American Technology Corp. (ATC) (Nasdaq:ATCO) announced today that it will participate with Bath Iron Works (BIW), a General Dynamics Company (NYSE:GD), in a contract awarded by the U.S. Navy's SMART CARRIER program to Bath Iron Works.

ATC and BIW will provide Superior Sound Technology installations in difficult audio communications areas. ATC also announced a separate project with Bath Iron Works for Ship's Force protection. Both projects are expected to bring approximately $175,000 in revenue to ATC over the next five months.

Under the U.S. Navy contract, ATC will provide several NeoPlanar(TM) speakers and hardware as well as consulting services. The Navy's objective is to improve audio clarity and intelligibility of communications over shipboard address systems and to achieve other advantages inherent in ATC's NeoPlanar technology.

In a separate project, ATC and Bath Iron Works have received a contract to develop a Non-Lethal Weapon based upon ATC's Directed Acoustic technologies. ATC will perform research, development, and produce prototypes.

"We are building upon the success of the test-case audio installations aboard the U.S.S. Winston Churchill," stated Terry Conrad, president of American Technology Corp. "The shipboard address systems announced today are scheduled to be installed aboard a CVN class aircraft carrier. We expect our Navy-related and other military business to grow substantially as the advantages of our acoustical methods and the expertise of our technical staff continue to prove their effectiveness in rigorous military environments."

About Bath Iron Works

Bath Iron Works of Bath, Maine, a leader in surface combatant design and construction, employs 7,000 people. It is a subsidiary of General Dynamics, with headquarters in Falls Church, Va. General Dynamics has leading market positions in shipbuilding and marine systems, land and amphibious combat systems, information systems, and business aviation. The company employs 52,000 people and had 2001 revenues of $12 billion. More information about General Dynamics can be found on the World Wide Web at www.generaldynamics.com.

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(R) (HyperSonic(R) Sound Technology); Stratified Field(R) Technology; NeoPlanar(R); PureBass(R) Sub-Woofer 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.