American Technology Corp. Exhibits At AFCEA West 2003 Military Conference; HyperSonic Sound and NeoPlanar to Be Demonstrated Onsite.

Business Editors & High-Tech Writers

AFCEA West 2003

Booth #325

SAN DIEGO--(BUSINESS WIRE)--Jan. 14, 2003

American Technology Corp. (Nasdaq:ATCO), announced today that it will be exhibiting at the Armed Forces Communications and Electronics Association's (AFCEA) Western Conference and Exposition (West 2003) at the San Diego Convention Center Jan. 14-16.

West 2003 is the largest event on the West Coast for communications, electronics, intelligence, information systems, imaging, military weapon systems, aviation, shipbuilding and more. Demonstrations of the company's HyperSonic(TM) Sound (HSS(TM)) and NeoPlanar(TM) sound technologies will be presented at Booth #325.

HSS is a patent-pending technology that changes the way people listen to audio reproduction. It uses high-frequency emitters to send out ultrasonic waves and the non-linear properties of the air create audible sound. Military uses, key benefits and capabilities include:

-- A powerful, directed megaphone for ship-to-ship communications.

-- Replacing headphones in equipment and station applications.

-- Replacing current loudspeakers on ships, submarines and other military vehicles.

-- An audible decoy in military situations.

-- Directed and focused sound used to discreetly talk to a single soldier in the field without disturbing others or broadcasting on radio frequencies.

NeoPlanar is a thin film magnetic audio speaker that can be built less than 1/8-inch thick. It is the first planar-magnetic (ribbon) transducer to use an innovative, proprietary high-tech polymer diaphragm structure. It is a very high-performance, versatile and cost-effective driver for a wide variety of applications. NeoPlanar speakers are being tested in land vehicles and have been successfully installed in the first of many expected shipboard applications. The key military benefits of NeoPlanar are its:

-- Extremely high audio output in small cubic volume.

-- High directivity characteristics, preventing excessive echo

and providing superior intelligibility.

-- Lightweight, waterproof materials.

"We are excited to be joining over 300 suppliers and government agencies at West 2003," said Terry Conrad, president of ATC. "This high-profile event provides us with an excellent opportunity to demonstrate how our revolutionary sound technologies provide superior and differentiated communications capabilities for military-related applications. We expect government and military installations of NeoPlanar and HSS sound systems to grow rapidly in 2003."

Further information about AFCEA, this event, exhibitors and attendees can be found at www.afcea.org.

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), NeoPlanar(R), PureBass(R) Sub-Woofer Technology, Stratified Field(R) Technology and high intensity directed acoustics. The company is establishing a strong portfolio of patents, trademarks and know-how, including over 124 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 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 the ability of the company to continue as a going concern, development of future products, technological shifts, potential technical or manufacturing 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.