American Technology Corporation Announces $1 Million HSS(R) Distribution Agreement; Vaccum ApS to Exclusively Distribute HSS Directed Sound Products in Denmark, Norway, Sweden and Finland.

SAN DIEGO -- American Technology Corporation (ATC) (Nasdaq:ATCO), a leading innovator of directed sound products and solutions, announced today that it has entered into a distribution agreement worth approximately $1 million with Vaccum ApS. Under the agreement, the Danish company will exclusively distribute ATC's revolutionary HSS(R) directed sound product line in Denmark, Norway, Sweden and Finland.

"This agreement is the culmination of many months of working together on HSS installations in Vaccum's now exclusive territory," commented Bruce Gray, ATC's vice president of commercial sales. "This is an initial one-year agreement, with guaranteed quarterly volume commitments, worth a total of approximately $1 million. We are excited to be working with Vaccum and their aggressive sales organization."

"ATC's HSS directed sound products enable our customers to place focused audio information in the locations of their choosing without the use of obtrusive and unsightly sound domes or the annoying background noise of omni-directional loudspeakers," said Per Holm of Vaccum ApS. "We are pleased with the response we are receiving from our Citroen, Carlsberg Beer and other HSS placements, and we are working on several new HSS installations in our territory."

ATC's proprietary HSS directed sound products place sound where you want it. With the combination of an ultrasonic powered emitter and a proprietary signal processor/amplifier, HSS focuses sound into a tight beam for optimal directionality and intelligibility. Similar to a beam of light, HSS uses ultrasonic energy to "shine" sound on a very specific area. Using any media player with line-level output, HSS converts music or voice into a complex ultrasonic signal prior to amplification. Once emitted, the converted sound forms a tight sound column in front of the emitter, which remains focused as it encounters listeners. HSS provides extremely accurate control of sound placement for digital signage, paging and announcing systems, point-of-purchase and general retail advertising, tradeshow exhibits and many other audio applications. Available in a variety of models, HSS is adaptable to meet the needs of many sound reproduction markets. To date, ATC has 207 patents issued and pending around the world on its HSS products and technology.

About American Technology Corporation

American Technology Corporation (ATC) (Nasdaq:ATCO) provides directed audio solutions that place clear, highly intelligible sound exactly where needed. ATC's HyperSonic(R) Sound, NeoPlanar(R) and Long Range Acoustic Device (LRAD(TM)) product lines make up the core of an expanding portfolio of directed sound products and technologies. For more information about 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 that 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 that 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, Vaccum ApS' performance under the distribution agreement, the performance of our management team, market acceptance of our directed sound technologies and products, entry of competitors, the possibility our intellectual property protections will not prevent others from marketing products similar to or competitive with our products, potential technical or manufacturing difficulties that could delay product deliveries or increase warranty costs, and other risks identified and discussed in our 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 our current expectations. For more information regarding other potential risks and uncertainties, see the "Risk Factors" section of the company's Form 10-K for the year ended September 30, 2005 and the company's Form 10-Q for the quarter ended June 30, 2006. American Technology Corporation disclaims any intent or obligation to update those forward-looking statements, except as otherwise specifically stated.