American Technology Corp. Consumer Product Sales Increase by More Than 400% in 1999; Sales of Consumer Products Expected to Double in 2000.

SAN DIEGO--(BUSINESS WIRE)--Dec. 7, 1999--

American Technology Corp. (Nasdaq:ATCO) announced today that sales of its consumer products including its FM Sounds(TM) miniature and portable radios increased 400% over fiscal 1998, to $788,000.

Since October 1, the company has sold an additional $550,000 of consumer products. With more than three weeks to go, this is more than a 300% increase over the entire December 1998 quarter. Based on expanding sales through five national retail chains, nine national catalogs -- three of which have e-commerce sites -- and 25 regional chains, the company is projecting sales will double in 2000.

Con Brosnan, chairman, president and chief executive officer, stated: "We have expanded the FM Sounds line to include solar and dynamo power options, rechargeable NiMH batteries, and convenient miniature models for use during sports and fitness activities. Our distribution grew this year from strictly electronics stores to include office supplies retailers, and mass merchants. The FM Sounds line is getting good response and consistent reorders. Revenue from the line has grown significantly over the last year, and based on the current quarter and future orders we expect to double our consumer product sales in 2000."

The company also announced that it hired Tom Johnston as national sales manager. Johnston most recently held the position of director of advertising and sponsorship sales at the San Diego Sports Arena and held previous sales positions at Busch & Associates Advertising Agency and with the San Diego Padres. Johnston is a graduate of the University of Arizona.

Said Johnston, "I am very excited to join ATC and am working to continue the momentum with our current distributors and customers as well as build relationships with new retail chains and stores. The affordable and unique FM Sounds line has tremendous potential to reach an even wider audience in sporting goods, electronics and grocery stores. I look forward to showcasing our expanding consumer products line at the International Consumer Electronics Show (CES) in Las Vegas January 6-9."

In the last twelve months, the company's FM Sounds line was increased from two in-the-ear radios to a total of twelve private-labeled portable electronics products and two desktop items. Included in the lineup are FM Sounds SolarLights(TM) and SolarSounds(TM), solar- and dynamo-generator-powered radios and flashlights effective in emergencies, and a one-handed automatic tape applicator named Tap-N-Tape(TM). All consumer products can be seen at www.atcsd.com under "Consumer Products."

About American Technology

American Technology is shaping the future of sound by developing and licensing its patented and patents-pending technology portfolio which includes: the award-winning HSS(TM) (HyperSonic(TM) Sound Technology) and SFT(TM) (Stratified Field(TM) Technology) as well as MFW(TM) (Magnified Force(TM) Woofer); Jet Engine Noise Reduction system; and FM Sounds(TM) consumer radio products. For more information on the company and its technologies and products visit www.atcsd.com.

Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements relating to future performance, sales, and product development that may impact on 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 risk factors such as: future products and results; technological shifts; competition; changes in retail distribution; general economic conditions in the markets in which the company operates; the ability of the company, its customers, and suppliers to become Year 2000 compliant; pricing pressures; and the uncertainty of market acceptance of new products by distributors and customers.