American Technology Corporation Receives 3,200 Unit HSS(R) Order from Digital Signage Provider; NewSight Corporation Installing HSS-Enabled Digital Signage Displays in Select Major Retail Stores.

SAN DIEGO -- American Technology Corporation (ATC) (Nasdaq:ATCO), an innovator of proprietary directed sound solutions, today announced it has received a 3,200 unit HSS(R) order from digital signage provider NewSight Corporation. Under this order, NewSight(TM) has initiated installations of HSS-enabled digital signage displays in select major retail stores; all installations are scheduled for completion before September 30, 2006.

Based in New York, NewSight creates proprietary digital narrowcast media networks that deliver interactive, entertaining and measurable customized advertising content. NewSight offers customized, end-to-end solutions for the creation, distribution and placement of digital signage media networks. NewSight's displays can be placed in nearly any environment for maximum, convenient exposure that directly reach today's mobile consumer.

"We are very pleased to be working with NewSight and their customers in the rapidly growing digital signage industry," said John Zavoli, president and chief operating officer of American Technology Corporation. "HSS enables multiple digital signage displays in close proximity with an unmatched ability to specifically direct advertising and informational messages to retail shoppers."

Larry Roberts, senior vice president of NewSight, remarked, "Our proprietary digital signage displays utilizing HSS offer our retail clients a unique and powerful tool to target their advertising messages as well as the messages of other advertisers and content providers in multiple locations throughout their stores. HSS gives our digital signage displays a clear focus and advantage over systems featuring traditional omni-directional loudspeakers."

HyperSonic Sound(R) (HSS) is a highly directional sound reproduction technology that utilizes ultrasonic columns to provide extremely accurate control of sound placement. HSS provides unparalleled sound directivity not possible with conventional loudspeakers. ATC's patented HSS products are being utilized in digital signage, displays, exhibits and other focused sound applications.

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 and others. The Company is establishing a strong portfolio of patents, trademarks and intellectual property, including over 320 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 and 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 the possibility of modification or termination of the order, potential technical or manufacturing difficulties that could delay shipments, and other risks identified and discussed in the 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.