American Technology Corporation Awarded Project Sheriff LRAD(TM) Contract; Contract is ATC's First Participation in a Program of Record.

SAN DIEGO -- American Technology Corporation (ATC) (NASDAQ:ATCO), a leading innovator of commercial, government, and military directed sound products and solutions, announced today it has been awarded a $245,000 contract from the Naval Surface Warfare Center Dahlgren Division (NSWCDD) to incorporate ATC's Long Range Acoustic Device (LRAD(TM)) into the U.S. Army's Stryker ICV FSEP Program. The Stryker ICV FSEP or Infantry Carrier Vehicle, Full Spectrum Effects Platform, formerly known as Project Sheriff, is a Program of Record under the U.S. Army's Office of Force Transformation (OFT).

Under the contract, ATC will deliver Stryker ICV FSEP hybrid LRAD systems and engineering support this calendar year. The contract also includes options for deliveries of additional hybrid LRAD systems.

The Project Sheriff initiative comes in response to the urgent operational needs of the U.S. Army forces in Iraq. Built on armored Stryker vehicles, the FSEP will include ATC's hybrid LRAD system as well as a wide array of non-lethal and lethal capabilities that can be utilized in a variety of peacekeeping and battlefield situations.

LRAD systems are designed to communicate with authority and exceptionally high intelligibility in a 15-30-degree beam in excess of 500 meters, and has the capability of emitting voice commands and powerful warning tones to influence behavior, gain compliance and 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.

About American Technology Corporation

San Diego-based American Technology Corporation (NASDAQ:ATCO) provides directed audio solutions that place clear, highly intelligible sound exactly where needed. ATC's LRAD systems have been in use since 2003 by the U.S. Army, Navy and Marines in the Middle East and Iraq. LRAD systems are also in use by police departments, cruise lines, commercial maritime vessels, the U.S. Border Patrol and the National Guard. For more information on American Technology Corporation and its directed sound products and technologies, please go to 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, the timely manufacture and shipment of the hybrid LRAD order, 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.