American Technology Corp. Delivering Second Generation High Fidelity SFT Speaker Technology to Global Consumer Audio Companies.

SAN DIEGO--(BUSINESS WIRE)--Nov. 30, 1999--

Light, Thin-Panel, Audibly Superior SFT Fits OEM Needs in Wide Variety

of Applications

American Technology Corp. (Nasdaq:ATCO), announced today that it is delivering engineering samples of its second generation Stratified Field(TM) Technology, (SFT(TM)) to global consumer audio companies.

The non-magnetic, hi-fidelity, thin speakers can be built into a wide variety of commercial and consumer products including executive style audio systems, home theater systems, hi-fi stereos, computers, quality multimedia systems, and custom audio installations. The second generation product allows control over audio dispersion creating the ideal sweet spot while taking a minimum amount of space and eliminating secondary, indirect distortion inherent with traditional magnetic speakers.

Con Brosnan, chief executive officer said, "Our SFT technology enables a new, modern generation of products defined by a new paradigm in industrial design while delivering great sound quality to fulfill on the promises inspired by these designs. Consumers are bored with conventional box speakers and the limitations that they put on the entire ID of products. Too many consumer electronics companies are trapped in the vicious cycle of lower and lower prices because they cannot differentiate their 'boxes.' ATC's SFT technology can be flat, shaped, and even curved 360 degrees to create an omni-directional speaker. The finishes can be produced in unlimited textures and colors and can even be made semi-transparent through the heart of the product. SFT provides OEM customers with a platform for innovation in design and marketing. Our technology offers a high quality-to-cost ratio that enables OEMs, for the first time, to bring quality sound to the mass market."

Elwood G. Norris, chief technology officer of American Technology, said, "SFT speakers are lighter than and have less than 10% of the vibration of conventional speakers, and because they use no magnets, they can be molded directly into televisions and computer monitors without causing distorted images. Many audio products that currently use conventional loudspeakers can benefit from SFT."

The potential market for SFT is huge. Home theater sales alone are expected to reach nearly $8 billion in 1999(a) and almost $12 billion in 2000. Over $200 million worth of portable audio products are sold per month, and on top of that, manufacturers sell $31 million worth of aftermarket speakers per month.

Brosnan added, "We are currently delivering SFT engineering samples to a number of global consumer audio companies which have high interest in our SFT thin-panel speaker technology. ATC has spent the past year refining the manufacturing processes for SFT to assure our customers access to quality devices from reputable, reliable, ISO-9000 certified manufacturing facilities. Production of commercial SFT transducers will begin as soon as our SFT licensees complete their evaluations and industrial design."

ATC's patent-pending SFT utilizes advanced materials research and unique design concepts to create a revolutionary sound reproduction system. SFT is a new thin-panel, non-magnetic, transducer technology with competitive cost of construction and a flexible form factor that provides high quality performance for a wide variety of applications. The properties of SFT make it ideal for products such as home theater systems, bookshelf and executive audio systems, installed sound reinforcement, professional monitors, hi-fi speakers, flat panel video displays, and other applications that gain advantage from physically thin or uniquely shaped and audibly superior loudspeakers.

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, technology 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; potential technical difficulties that could delay new products and technology; competition; 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 OEM's and end-user customers.

(a) All market statistics are from the Consumer Electronics Association (CEA, formerly CEMA). Dollar amounts represent worldwide sales by manufacturer to dealers.