American Technology and Carver Corp. collaborate on home audio system using HyperSonic Sound technology

Business Wire, Oct 29, 1996

SAN DIEGO--(BUSINESS WIRE)--Oct. 29, 1996--

Agreement expected to result in licensing of technology for

revolutionary audio products capable of generating sound in mid-air,

without using loudspeakers

American Technology Corp. (OTC:ATCO) and Carver Corp. (NASDAQ:CAVR) Tuesday announced that in anticipation of a formal license agreement they have entered into a collaboration agreement on the development of a high-quality home audio sound system using customized Carver high-fidelity audio components and employing American Technology's innovative HyperSonic Sound (HSS) reproduction technology.

HyperSonic Sound is an entirely new method of audio reproduction whereby sound is generated directly in mid-air, without the use of loudspeakers. The technology uses ultrasonic waves that interact in space to generate and place full-spectrum audio. Since none of the bulky, distortion-producing elements of conventional speakers are used, sound quality is no longer dependent on speaker size. HSS represents a new paradigm in the generation of sound.

Jim Croft, vice president of research and development for Carver stated, "HSS is an elegant new technology that is already achieving significant performance advancements that are impossible with conventional speaker systems. We have explored many audio technologies including HSS-like systems, but the advancements accomplished by the ATC team to make this technology realizable is a real breakthrough in sound reproduction."

Carver has successfully discovered and developed new technologies that show their potential to dramatically improve the audio listening experience, starting with the Magnetic Field amplifier and Sonic Holography, and later expanding into innovative technology improvements involving FM reception, CD playback, sound field control, Lightstar power amplification and high performance ribbon loudspeakers.

"If these developments can be advanced to commercial production, they will solve the long-standing problems that plague current loudspeaker systems, to the extent that HSS technology may replace conventional loudspeakers as we know them," continued Croft. "Carver intends to contribute to the completion, optimization, and commercialization of the technology and expects to be on the leading edge by being the first to introduce consumer audio products based on HyperSonic Sound."

Elwood Norris, inventor of HSS and director of ATC stated: "Carver has a superior reputation and is a long-time, recognized leader in audio innovation. Through this collaboration, they are again showing they have the vision to recognize and develop innovative audio technology."

Norris added that ATC engineers will work with their Carver counterparts to develop a marketable high-end HSS system. "Carver's team has unparalleled experience in the art and science of audio reproduction," added Norris. "As our collaboration continues to bear fruit, we anticipate it will lead to licensing of our technology by Carver and the introduction of truly unique audio products for the consumer market."

Consumer audio is not only the application of HyperSonic Sound. It also has uses in home and mobile systems, multimedia, cinema, stadiums and concert halls. The noise cancellation niche is another area currently under study, as ATC pursues its strategy of applying for patents covering broad aspects and uses of its proprietary HSS technology.

For more than 15 years, Carver has been one of the most recognized brands in consumer audio. The company designs, develops, manufactures and markets high-fidelity home audio components to the mid- to high-end audio entertainment systems market. Carver's line of consumer audio products is carried in a broad range of audio outlets nationwide, including Circuit City. Key products are produced in the United States at Carver's advanced facility in Lynnwood, Wash. See www.carver.com.

American Technology Corp. is a San Diego-based electronics company specializing in the development, manufacture and marketing of leading-edge proprietary electronic products and acoustical technologies. ATC invented, developed and sold patented EarPHONE speaker/microphone technology being used in telephone, computer and cellular applications. ATC has also innovated and is marketing a highly successful line of FM and AM miniature radios for today's mobile lifestyle. For more information on the company and its products, visit www.atcsd.com.

CONTACT: American Technology Corp., San Diego

Robert Putnam, 619/679-3168

or

Carver Corp.

Jim Croft, 206/775-1202

or

The Benjamin Group Inc.

Alex Braun/Sheri Benjamin, 408/559-6090