American Technology Corporation Announces Preliminary Record Fiscal 2005 Revenues; Forecasts Increasing HSS(R) Product Shipments.

SAN DIEGO -- American Technology Corporation (ATC) (NASDAQ:ATCO), a leading innovator of directed sound reproduction technologies and products, today announced preliminary revenues for the fiscal year ended September 30, 2005 to be between $10.1 million and $10.3 million, an increase of over 75 percent over revenues for the fiscal year ended September 30, 2004. ATC expects increased HSS revenues in the current quarter ending December 31, 2005 over the previous quarter due to growing shipments of H450 units to U.S.-based and international digital signage customers.

"We are emerging from several years of developing an extensive portfolio of directed sound technologies and products," said Elwood G. Norris, founder and chairman of ATC. "During our fourth fiscal quarter, we derived revenues from a full line of directed sound products while substantially cutting monthly operating and staffing costs due to the completion of important product development initiatives. We are now building upon the considerable investment we have made in our proprietary HSS, NeoPlanar(R), LRAD(TM) and Sound Vector(TM) technologies and intellectual property by quickly putting in place the sales and marketing resources required to accelerate annual revenue growth."

"We anticipate increasing commercial group revenues this quarter and in fiscal 2006. We are making adjustments to our government and force protection organization designed to expand business opportunities, increase revenues, even out quarterly revenue fluctuations, and provide added depth and experience to the government sales and marketing efforts, both in the U.S. and abroad," Norris continued.

Norris concluded, "With a full line of groundbreaking directed sound products being produced, marketed and sold, and considering our growing backlog of business, we expect fiscal 2006 revenues to exceed our record fiscal 2005 revenues."

These preliminary revenue results are subject to completion of fiscal year end accounting procedures by ATC's management and to audit by its independent auditors. ATC expects to announce its final results for the fourth fiscal quarter and the fiscal year ended September 30, 2005 by mid-December 2005.

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) products family; NeoPlanar(R) products family, Sound Vector(TM) technology, and others. The Company is establishing a strong portfolio of patents, trademarks, and intellectual property including over 320 U.S. and foreign patents and pending patent applications 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 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 completion of fiscal year end closing procedures and audit of our results by our independent auditors, 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. American Technology Corporation disclaims any intent or obligation to update those forward-looking statements, except as otherwise specifically stated.