American Technology Corporation -ATC- Awarded $436,000 Contract to Develop and Deliver Next Generation Aircraft Carrier Flight Deck Speaker System for U.S. Navy.

Business Editors/High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--May 27, 2004

ATC's New Speaker System Deployed on USS Stennis (CVN-74)

American Technology Corporation (ATC) (Nasdaq:ATCO) announced today it has been awarded a $436,000 contract by the U.S. Navy via a contract with Signal Solutions, Inc., a subsidiary of General Dynamics Network Systems. Under the contract, ATC has developed and is delivering a new, next-generation speaker system engineered for the austere challenge of voice communication during flight operations. The first installation of ATC's new, engineered acoustic solution has been deployed on-board the flight deck of the John C. Stennis (CVN-74).

"The existing flight deck voice communications system (designated the 5MC system by the U.S. Navy) has not been upgraded for decades," remarked Carl Gruenler, vice president of ATC's Government and Force Protection Systems Group. "Sound intelligibility across the flight deck during flight operations is safety critical. The benefits of our new speaker system include providing even sound coverage across the flight deck, a new standard for intelligibility, volume sensitivity to varying levels of ambient noise, significant system weight reduction, and reduced life cycle cost. As an additional benefit, our system reduces noise pollution in the area surrounding the ship.

"ATC is pleased to respond to the challenge of providing a next-generation 5MC system for carrier aviation," Gruenler concluded. "Our goal is to be the first company the Navy calls for next-generation acoustic solutions to difficult sound reproduction and amplification problems. Providing highly intelligible engineered solutions and responding to unique customer requirements are integral parts of Shaping the Future of Sound(R)."

ATC's next generation 5MC speaker system will be publicly unveiled this afternoon at the company's annual meeting of shareholders being held in San Diego.

About American Technology Corporation

American Technology Corporation is Shaping the Future of Sound(R) by developing, manufacturing and globally distributing its proprietary sound technologies and products which include: the award-winning HSS(R) (HyperSonic(R) Sound Technology); LRAD(TM) (Long Range Acoustic Device); NeoPlanar(R) Technology; PureBass(R) Sub-Woofer Technology; and Stratified Field(R) Technology (SFT(R)). The Company is establishing a strong portfolio of patents, trademarks, and intellectual property including over 140 U.S. and foreign patents and patent filings to date. For more information on the company and its technologies and products please visit our web site at www.atcsd.com.

Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the matters discussed are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act. You should not place undue reliance on these statements. We base these statements on particular assumptions we have made in light of our industry experience, the stage of product and market development as well as our perception of historical trends, current market conditions, current economic data, expected future developments and other factors we believe are appropriate under the circumstances. These statements involve risks and uncertainties that could cause actual results to differ materially from those suggested in the forward-looking statements including, but not limited to, changes in the sound reproduction industry, our ability to develop future products, technology shifts, potential technical or manufacturing difficulties that could delay products, competition, pricing pressures, the uncertainty of market acceptance of new products and services by customers, warranty or other claims, the outcome of pending or future litigation, general economic factors and other risks identified and discussed in the Company's 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. American Technology Corporation disclaims any intent or obligation to update those forward-looking statements, except as otherwise specifically stated.