American Technology Corporation Reports Highlights of Annual Meeting of Shareholders; New Management Team Provides Updated Business and Revenue Guidance.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--May 28, 2004

American Technology Corporation (ATC) (Nasdaq:ATCO), an innovator, marketer and global distributor of focused and controlled sound reproduction technologies and products, reported the highlights of its Annual General Meeting of Shareholders held yesterday in San Diego.

The formal business of the meeting included the ratification of BDO Seidman, LLP, as the Company's independent auditors for its fiscal year ending September 30, 2004, and the election of Elwood G. Norris, Kalani Jones, Richard M. Wagner, David Carter and Daniel Hunter to the Board of Directors. After the conclusion of the formal business of the meeting, Kalani Jones, president and chief operating officer, Joseph A. Zerucha, vice president of the company's Business Group, and Carl Gruenler, vice president of the company's Government and Force Protection Group, gave business and technology presentations.

MEETING HIGHLIGHTS BY PRESENTERS

Kalani Jones - President and COO

--  ATC is on its way to being globally recognized as the provider of
    innovative, shaped and highly intelligible sound technologies and
    products.
--  A new senior management team has been engaged, and two divisions
    -- the Business Group and the Government and Force Protection
    Systems Group -- have been created to provide focus and
    accountability.
--  ATC has instituted several internal process changes to produce,
    through manufacturing partnership, high quality products. These
    changes include phase gate development, internal design review and
    rigorous product testing.
--  ATC is working with announced and unannounced partners to support
    the global distribution and expansion of the company's proprietary
    sound technologies and products.
--  The Business Group is focused on selling HSS(R) products via
    large, multi-million dollar programs and through global
    distribution partners.
--  The Government and Force Protection Systems Group is focused on
    the U.S. military market and leveraging into other U.S. and
    international government sales.

Joseph A. Zerucha - Vice President of the Business Group

--  Division strategy: Implementing HSS distribution and
    infrastructure to support revenue growth through direct sales,
    indirect sales (through distribution channels), components sales
    and licensing partnerships.
--  HSS Generation 2/BR is currently shipping.
--  Rolling out HSS Generation 3 in July. Generation 3 features:
    --  Higher SPL (louder)
    --  Lower distortion (cleaner sound)
    --  Slimmer profile
--  Current products being sold include: HSS S120/BR and S220/BR;
    NeoPlanar SoundBar 100, 300, 900 and Winged 8" drivers.
--  Addition of PEMSTAR as manufacturing partner.
--  Multiple, multi-million dollar HSS programs in various stages of
    evaluation include:
    --  Fortune 50 international goods company
    --  Multi-billion dollar U.S. Government services organization
    --  Fortune 50 international food services enterprise
    --  Major advertising agency on behalf of a Fortune 500 beer
        enterprise
    --  Major advertising agency on behalf of fast food industry giant
    --  Global news and advertising company
--  HSS marketing and sales focused on: brand managers, advertising
    agencies, digital signage, point-of-decision, point-of-purchase,
    eye-care offices, museums, grocery stores, retail outlets,
    in-store networks, suppliers to trade show exhibits and others.
--  Recent HSS exposure through:
    --  Distributor in France received an award for Best Product at
        prestigious Paris exhibition
    --  Showcased by Wired Magazine at their recent NextFest.2004
    --  Installed in McDonalds at the Smithsonian National Air and
        Space Museum
    --  Featured on "The Today Show" (NBC - May 26)
    --  Bellagio (Las Vegas) placing HSS in lobby atrium
--  ATC has established resellers in the U.K., France, Spain, Italy,
    Greece, Japan and Korea, and is in negotiations with resellers in
    16 other countries.
--  HSS revenue is growing as current and prospective customers gain
    more experience and success implementing this industry-changing
    technology into their products and applications.

Carl Gruenler - Vice President of the Government and Force Protection
 Systems Group

--  Division strategy: To be the pre-eminent acoustic provider for
    government and force protection, and to provide new-generation
    intelligibility solutions for the worldwide government and
    industry security market.
--  Focused on selling versions of the company's Long Range Acoustic
    Device (LRAD(TM)), hardened NeoPlanar(R) products and a new
    military sound system (5MC) announced today as stand-alone
    products or integrated into military programs of record.
--  Current customers with product deployments include: U.S. Navy,
    U.S. Marine Corps, U.S. Army and U.S. Coast Guard. Potential
    customers ATC is working closely with include: U.S. Border Patrol,
    Port Authority New York/New Jersey, New York Police Department and
    others.
--  Markets/Uses for LRAD include: maritime, stationary, vehicular,
    and airborne, plus asset and infrastructure protection; waterside
    force protection, crowd control, area denial of personnel,
    clearing buildings, psyops and anti-terrorism force protection.
--  Markets/Uses for NeoPlanar include: replacement for old-technology
    speaker systems, new construction, physical security and
    notification, aircraft hangars and flight lines, public address
    systems, and force protection.
--  Markets/Uses for new 5MC military speaker system include: flight
    decks, amphibious well decks, public address systems (large
    areas), emergency notification (large areas) and force protection.
--  Working with multiple U.S. and international partners.

Kalani Jones concluded the management presentation by:

--  Giving revenue guidance of $2 million for the quarter ending June
    30, 2004, and stating the company would provide further revenue
    guidance next quarter.
--  The Government and Force Protection Systems Group is expected to
    outperform the Business Group this quarter; however, HSS sales are
    expected to increase over the most recent previous quarter ended
    March 31, 2004.
--  ATC is searching for a chief financial officer and expects to
    continue to invest in sales and marketing resources and product
    engineering resources to drive accelerated revenue growth from a
    growing portfolio of innovative sound solutions.

"We have made substantial organizational, technology, product and business progress this past year," Jones concluded. "We are Shaping the Future of Sound(R) by leveraging our substantial body of intellectual property to drive significant revenue growth for the company and our shareholders, and creating new revenue opportunities for our growing list of global customers."

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), NeoPlanar(R) Technology, LRAD(TM) (Long Range Acoustic Device), PureBass(R) Sub-Woofer Technology and Stratified Field(R) Technology (SFT(R)). The Company is establishing a strong portfolio of patents, trademarks and intellectual property, including over 140 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 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 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, our ability to develop future products, technology shifts, potential technical or manufacturing difficulties that could delay products, competition, pricing pressures, the uncertainty of market acceptance of new products and services by customers, warranty or other claims, the outcome of pending or future litigation, general economic factors, and other risks identified and discussed in the Company's 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 the Company's current expectations. American Technology Corporation disclaims any intent or obligation to update those forward-looking statements, except as otherwise specifically stated.