U.S. Army Purchases HMMWV-Mounted LRAD(TM) 500s for Select Combat Units in Iraq; American Technology Corporation (ATC) Receives Over $300,000 in LRAD 500 Orders from the U.S. Army's Rapid Equipping Force.

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 received new orders totaling over $300,000 for its proprietary Long Range Acoustic Device (LRAD) 500 from the U.S. Army's Rapid Equipping Force through ATC's reseller, ADS, Inc. The majority of the LRADs are slated for use by select combat units in Iraq protecting Army convoys.

LRAD is 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 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.

"These orders are a result of our working exclusively with the Army's Rapid Equipping Force to deploy LRAD 500 evaluation units into northern Iraq last fall," said A.J. Ballard, ATC's vice president of government and force protection systems. "These units are designed for integration with the weapon on the HMMWV turret (for more information about the HMMWV, please see: http://www.army.mil/fact_files_site/hmmwv/) utilizing ATC's custom HMMWV mounting system. This LRAD 500 configuration provides the operator with a critical tool to hail, notify, warn, to gain compliance, and determine intent in host nation languages before escalating to a non-lethal or lethal response against unauthorized individuals or groups approaching Army convoys on foot or in vehicles.

"Detailed reports from Iraq indicate that both the LRAD 1000 and LRAD 500 have been very effective in a host of land- and sea-based applications, including marine interdiction operations, controlling maritime vessel traffic, protecting critical oil infrastructure in the Persian Gulf, check point crowd control, internment facilities, convoy protection, and as a secondary means of long range communication. The integration of LRAD 500s onto select HMMWV's will provide a significant enhancement to the critical mission of convoy protection and, more importantly, has the potential to save lives on both sides of the device," Ballard concluded.

About American Technology Corporation

American Technology Corporation is Shaping the Future of Sound(R) through its proprietary directed sound products and technologies, which include: the award-winning HSS(R) (HyperSonic(R) Sound technology), LRAD(TM) (Long Range Acoustic Device) products family, NeoPlanar(R) products family, Sound Vector(TM) technology, and others. The Company is establishing a strong portfolio of patents, trademarks, and intellectual property, including over 320 U.S. and foreign patents and pending patent applications 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 but not limited to, 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. American Technology Corporation disclaims any intent or obligation to update those forward-looking statements, except as otherwise specifically stated.