The formal business of the meeting included the ratification of BDO Seidman LLP as the company's independent auditors for its fiscal year ending Sept. 30, 2003, and the election of Elwood Norris, James Irish, Richard Wagner, David Carter, Terry Conrad and Daniel Hunter to the board of directors. After the formal business, Elwood Norris, chairman, James Irish, CEO and Terry Conrad, senior vice president of military operations and engineering, gave detailed business and technology presentations to the shareholders present. Representatives from iPort Media, General Dynamics and Gateway also gave presentations regarding current business opportunities for ATC's sound technologies and products.

    Norris presented an overview of the company's business progress over the last year and then turned the floor over to Irish. Irish profiled the company's Generation II HSS free-form emitter that offers significant improved frequency response, substantially reduced distortion levels and is simpler to manufacture. Generation II HSS comes in multiple sizes and can be mounted in walls and ceilings and features an outboard amplifier and improved electronics. Irish also unveiled a future concept of HSS-enabled track lighting for commercial, industrial and retail applications. Irish detailed domestic and foreign HSS distribution models currently being implemented as well as the recently announced iPort Media and Sony Business Europe agreements.

    Irish provided a list of HSS, NeoPlanar(R) and PureBass early adopter clients with whom ATC is currently working for industrial, retail and commercial applications. Some of the companies and organizations listed included: McDonald's, Procter & Gamble, Sony, Gateway, General Dynamics, Cirque Du Soleil, New York New York Casino and Hotel, NetZone, Waypoint Media, International Robotics, D3D Media, UC Berkeley, Florida Light and Power, McDonnell Douglas, Tunis, Harbor Industries, New York Port Authority, Los Angeles Police Department and Prime Selections TV among others.

    Conrad outlined the company's progress with its militarized audio technologies (HIDA -- High Intensity Directed Acoustics, LRAD -- Long Range Acoustic Device, NeoPlanar and HSS) in government and military-related business. With the assistance of General Dynamics, the company is working with the following key military clients: NeoPlanar clients: General Dynamics, U.S. Navy, U.S. Army, a military radio manufacturer and an academy.

    HSS clients: Air Force, Naval Research Lab, a counter-terrorism agency and a large defense contractor. HIDA/LRAD clients: General Dynamics, U.S. Navy, U.S. Army, U.S. Marine Corps, New York/New Jersey Port Authorities and others.

    Norris and Irish noted the importance of the recent and on-going press coverage that has maximized company and technology exposure resulting in "a mountain" of leads and product demand. Irish explained that the company's current public relations efforts are being done very cost effectively as opposed to expensive advertising campaigns. ATC and its technologies have been featured in several publications, including: Restaurant News, Business 2.0, Popular Science, Newsweek, BusinessWeek, Forbes, New York Times Magazine and USA Today among others. Further media coverage is scheduled.

    About American Technology Corp.

    American Technology Corp. is Shaping the Future of Sound(R) by developing and licensing its technology and intellectual property portfolio which includes: the award-winning HSS(R) (HyperSonic(R) Sound Technology); NeoPlanar(R) Technology; PureBass(R) Sub-Woofer Technology; HIDA(TM) (High Intensity Directed Acoustics), LRAD(TM) (Long Range Acoustic Device) and Stratified Field(R) Technology. The company is establishing a strong portfolio of patents, trademarks and know-how including over 138 U.S. and foreign patents and patent filings to date. For more information on the company and its technologies and products visit our Web site at www.atcsd.com.

    Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: This document contains forward-looking statements relating to future transactions, performance, technology and product development which may affect 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 risks and uncertainties, including the ability of the company to continue as a going concern, development of future products, technological shifts, potential technical or manufacturing difficulties that could delay new products, competition, general economic factors, pricing pressures, the uncertainty of market acceptance of new products and services by OEMs and end-user customers, and other factors identified and discussed in the company's most recent 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 by it.

    Editors Note: HyperSonic Sound, HSS, NeoPlanar, PureBass, HIDA, LRAD, and Shaping the Future of Sound are trademarks or registered trademarks of American Technology Corp. All other company, product, and service names are the property of their respective owners.

--30--JV/sd* CONTACT: American Technology Corp. Robert Putnam, 858/679-3168 (Investor Relations) robert@atcsd.com or Donald Mathias, 949/855-4520 (Media) dwmath@aol.com KEYWORD: CALIFORNIA INDUSTRY KEYWORD: HARDWARE COMPUTERS/ELECTRONICS PRODUCT SOURCE: American Technology Corp.