American Technology Corporation Appoints John Zavoli to Board of Directors; Company Outlines Growing Family of Proprietary Sound Reproduction Technologies and Products.

SAN DIEGO -- American Technology Corporation (ATC) (NASDAQ:ATCO), a leading innovator of proprietary sound reproduction technologies and products, today announced the appointment of John Zavoli as an independent director to its board of directors.

Mr. Zavoli is the chief executive officer and president of San Diego-based Path 1 Network Technologies Inc. (AMEX:PNO), a leading provider of IP video transport and routing systems to broadcasters, satellite operators, mobile carriers, cable MSOs, telecom operators, and entertainment studios. Mr. Zavoli brings more than 17 years of multinational finance, operating, and Big 4 consulting experience to the board of ATC. He has directed corporate financial, treasury, tax, and legal operations for major public and VC-funded corporations. Mr. Zavoli has served as chief financial officer with both public and VC-funded companies, and has held senior financial roles at Digital Equipment Corporation, Madge Networks and Waste Management International. He also is a former partner at PricewaterhouseCoopers LLP, where he advised high tech clients in global operations, taxation, fiscal management, M&A, and other related issues. He has extensive international operations and finance experience gained from living and working in Asia and Europe. He has a Bachelor of Science in accounting from the University of Illinois, a J.D. from the John Marshall Law School, and a Master of Laws from Boston University School of Law.

"I am excited to add my resources and experience to the board of American Technology Corporation," said Zavoli. "As a new member of the board, I look forward to working with the other directors in guiding ATC in Shaping the Future of Sound(R). ATC has a substantial portfolio of proprietary sound reproduction technologies and products that have the potential to be highly successful."

"We are pleased to have John join our board," commented Elwood G. Norris, founder and chairman of American Technology Corporation. "John has the skills and experience required to assist our board in guiding our expected continuing year-over-year growth."

Norris continued, "Over the last eight months we have made a significant investment in developing new products based on our proprietary sound reproduction technologies. MRAD(TM), Sound Sentinel(TM), Sound Saber(TM), and Sound Vector(TM) are among our latest products. We have also made important improvements to our existing LRAD and HSS technologies and products."

ATC currently offers a comprehensive line of directed sound solutions ranging from force protection to home audio. Current product offerings include:

--HSS(R) -- Highly focused ultrasonic columns provide extremely accurate control of sound placement for digital signage, paging and announcing systems, tradeshow exhibits and home audio applications. The recently announced Model H450 is an economical and flexible product adaptable to meet the needs of many sound reproduction markets.

--LRAD(TM) -- A breakthrough long-range hailing and warning, directed acoustic device designed to communicate with authority and exceptionally high intelligibility in a 15-30 degree beam. LRAD can issue a verbal challenge with instructions in excess of 500 meters and has the capability of following up with a warning tone to influence behavior or determine intent. LRADs are currently deployed in a variety of government, military and commercial applications around the world, including military deployments with the U.S. Marine Corps, U.S. Army, and U.S. Navy in Operation Iraqi Freedom.

--MRAD(TM) -- About half the size and weight of LRAD, MRAD is optimized for land and vehicle-based operations. MRAD is intended for multiple commercial, government/military, and local, national and international law enforcement applications. MRAD is expected to be particularly effective on armored vehicles for urban warfare, at checkpoints, and for use in access denial.

--NeoPlanar(R) Panels -- A thin film planar magnetic speaker which features high output with exceptional clarity. NeoPlanar panels are being offered for a diverse range of applications from home theaters to large entertainment venues. NeoPlanar panels are currently installed in arenas, on-board a U.S. Navy aircraft carrier, a large private yacht, and are being utilized for home and outdoor entertainment. Our NeoPlanar panels have also been licensed for automotive use.

--Sound Sentinel(TM) -- A NeoPlanar-based solution for mass notification and public address systems with an effective range in excess of 500 yards. Tyco/ADT Security Systems is currently offering this product to their extensive customer list.

--Sound Saber(TM) -- A hardened NeoPlanar-based solution for providing highly intelligible sound in challenging acoustic environments such as airports, hangar bays, warehouses and other large commercial and government facilities. Installations are currently underway.

--Sound Cluster(TM) -- A customized horn array engineered specifically for outdoor areas where ambient noise fluctuates dramatically. Sound Cluster automatically adjusts its volume output based on the ambient noise present. Aircraft carrier installations are currently being tested and evaluated by the U.S. Navy.

--Sound Vector(TM) -- A new scaleable, directional sound product for replacing today's noisy omni-directional hazard signals, back-up alarms, sirens, and train whistles. First orders are expected this summer.

Norris concluded, "As previously reported, the Company shipped $7.23 million in products and services in the first half of the fiscal year and expects a significant increase in revenues over last fiscal year and uneven quarterly revenues due to the early stages of the markets and products in which we are involved. Along with continuing LRAD sales, we also expect added contributions from our new MRAD, Sound Sentinel, Sound Saber, Sound Vector, and HSS Model H450 this fiscal year."

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) planar magnetic technology, and others. The Company is establishing a strong portfolio of patents, trademarks, and intellectual property including over 215 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 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 changes in the sound reproduction industry, the need for market acceptance of our sound reproduction technologies, entry of competitors in the sound reproduction market, the possibility our intellectual property protections will not prevent others from marketing products similar to or competitive with our products, our ability to develop future products which maintain a competitive advantage over competing products, pricing pressures, technology shifts, potential technical or manufacturing difficulties that could delay products, possible government regulations, general economic and political factors which influence buying decisions, 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.