American Technology to Launch Industry-Changing Sound Technology.

SAN DIEGO--(BUSINESS WIRE)--Nov. 16, 1999--

Revolutionary HyperSonic(TM) Sound Provides New Solutions --

International Press and Trade Tour To Be Part of Technology Launch

American Technology Corp. (Nasdaq:ATCO), an innovator in new sound technologies, will change the way the electronics industry uses sound with its first generation HyperSonic Sound (HSS(TM)) directional sound technology.

With the advent of HSS, unique sound solutions are now possible enabling new products and features.

Previously uncontrollable sound dispersion was a problem for many audio industry applications. HyperSonic Sound produces sound along an invisible beam. Audible sound exists where the beam encounters a listener or a surface, up to several hundred feet from the source. And HSS does not diminish in intensity over distance at the same rate as conventional sound. In the case where an HSS column intersects a surface or an object, that object becomes a virtual speaker. HSS enables pinpointing sound similar to the way one would use a laser beam to pinpoint light. These unique attributes of HyperSonic Sound enable for the first time custom control of sound placement and thus who hears it.

Elwood G. Norris, chief technology officer of American Technology, said, "After three years of intensive research and development we recently made two very important breakthroughs essential to our technology launch. The first relates to the electronic processing of sound signals for HSS reproduction. The second breakthrough was the invention and development of our own proprietary emitter device capable of performing to and matching the exacting requirements of HSS processing. Until now no emitter has exhibited the performance characteristics or ruggedness required for market launch of this industry-changing technology."

Norris continued, "The combination of patent-pending electronic processing and a proprietary emitter provide a strong intellectual property base for licensing to customers. I am especially gratified that our recent innovations have come from the efforts of our in-house research and development team. Our team has produced sound results that will shake up the field of acoustics."

"HSS innovations provide a revolutionary means to create dramatic auditory environments previously impossible. Imagine using HSS' directional capabilities in applications ranging from theaters and trade shows to theme parks and supermarkets, from museums and science centers to the zoo as well as highly directional sirens and bullhorns. HSS also has applications in many traditional speaker markets to enhance existing products with new sound capabilities."

"Companies worldwide have contacted us with unique applications impossible with conventional loudspeakers but now possible with the launch of HSS," added Con Brosnan, president and chief executive officer. "From their input we anticipate HSS in specialized applications and venues first, followed by more conventional speaker applications. We are excited by the breadth of consumer, military and commercial applications that have come forth. Our goal is to rapidly move forward with licensing and commercialization through OEM customers so consumers can experience new concepts in sound reproduction."

As a part of the launch of HSS, the company is planning a tour of major media and trade centers in the United States, Europe and Asia to demonstrate the unique features of patented HSS technology to the media, the trade and the public. Specific dates and locations of the events are to be announced separately. The company is also preparing HSS evaluation kits for the 300+ companies seeking to use HSS in a wide variety of applications.

American Technology Corp. is shaping the future of sound by developing and licensing its patented and patents-pending technology portfolio which includes: the award-winning HSS(TM) (HyperSonic(TM) Sound Technology) and SFT(TM) (Stratified Field(TM) Technology) as well as MFW(TM)(Magnified Force(TM) Woofer); Jet Engine Noise Reduction system; and FM Sounds(TM) consumer radio products. For more information on the company and its technologies and products visit www.atcsd.com.

Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements relating to future performance, technology and product development that may impact on future results and the future viability of the company. Actual results could be affected or differ materially from those projected in the forward-looking statements as a result of risk factors such as: future products and results; technological shifts; potential technical difficulties that could delay new products and technology; competition; general economic conditions in the markets in which the company operates; the ability of the company, its customers, and suppliers to become Year 2000 compliant; pricing pressures; and the uncertainty of market acceptance of new products by OEM's and end-user customers.