American Technology Corporation Announces New Products and Business Relationships at Annual Meeting of Shareholders; Company Provides Updated Business and Revenue Guidance

Business Wire, April 29, 2005

SAN DIEGO -- American Technology Corporation (ATC) (Nasdaq:ATCO) a leading innovator of proprietary sound reproduction technologies and products, announced revenue for the three and six months ended March 31, 2005, and new products and business relationships at its Annual 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, 2005, the approval of a new equity incentive plan, 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, Elwood G. Norris, founder, chairman and chief executive officer, Kalani Jones, president and chief operating officer, Bruce Gray, vice president of the company's Business Group (now renamed, the Commercial Products Group), and Carl Gruenler, vice president of the company's Government and Force Protection Systems Group (Government Group), gave business and technology presentations.

MEETING HIGHLIGHTS BY PRESENTERS

Elwood G. Norris -- Founder, Chairman & CEO

--One year ago, ATC began turning its revolutionary sound reproduction technologies into products, recording $5.8 million in revenue in fiscal 2004.

--To date, ATC has received orders for over $8.0 million in products and services since the beginning of fiscal 2005.

--ATC is unique in its corporate mission and believes its sound reproduction technologies have the potential to create many new products and markets.

--ATC intends to be the driving force in creating and reaping the rewards of Shaping the Future of Sound(R).

Kalani Jones -- President and COO

--ATC's strength is its ability to innovate and create valuable sound reproduction intellectual property, technology and products that produce a significant competitive advantage for ATC and its customers.

--Through ATC's two operating divisions, the Commercial Products Group and the Government Group, ATC is focused on bringing products incorporating its core HyperSonic Sound(R) (HSS(R)), NeoPlanar(R) and LRAD(TM) technologies to large growing markets that have the potential to produce, over time, greater than $100 million annually to ATC.

--Intellectual property in the form of patents, patent filings, trademarks and registered trademarks are critical to the Company's success.

--ATC has hired a fulltime patent attorney, Cliff Thompson.

--ATC expects to continue investing in advancing and protecting its intellectual property.

--ATC expects to continue funding the research and development of new sound reproduction technologies and products.

--The Commercial Products Group is focused on selling ATC's proprietary sound reproduction products to companies in the digital signage, display and consumer markets through national and international distribution partners.

--The Government Group is focused on selling LRAD and NeoPlanar-based products through the force protection and mass notification markets to national and international governments, military agencies, and commercial companies.

Bruce Gray -- Vice President of the Commercial Products Group

--Group strategy: Selling HSS and NeoPlanar products directly to large integrators and small stocking resellers in North America and Europe, while adding authorized resellers in North America, and increasing licensing and OEM sales.

--Announced a new partnership with the U.S. Audio Video Group (USAV), a national association of leading professional audio/video solutions providers headquartered in Denver. USAV has selected ATC as its sole provider of directional sound products. USAV and its 25 individual dealers will expand the availability of ATC's sound reproduction products throughout North America.

--Announced SoundVector(TM), a patent-pending technique by which sound pressure waves from a single conventional loudspeaker system are redirected to create, 1) canceling waves, and 2) reinforcing waves. SoundVector eliminates sound waves in the rearward direction and nearly doubles the sound volume in the forward direction.

--One year ago, ATC's efforts in the digital signage market were limited to promotions, market development, and early-stage pilot programs. Today, pilots are being completed and projects are at the bid stage with several accounts reaching the end of the "sales funnel" process.

--In the last thirty days, the Commercial Products Group has received over 500 inbound sales inquiries, 19 new RFQ's (requests for quotes) and has released 7 formal bids.

--Provided a preview of ATC's new look to the Company's new website, tradeshow booth, and marketing materials. The new website is scheduled to go on-line this summer.

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

--Group mission: To be the pre-eminent acoustic provider for force protection and new-generation intelligibility solutions to the worldwide security and mass notification markets.