American Technology Corporation Names Bruce Gray as Vice President of

    Business Editors

    SAN DIEGO--(BUSINESS WIRE)--March 28, 2005--American Technology Corporation (ATC) (Nasdaq:ATCO), an innovator of proprietary sound reproduction technologies, today announced that Bruce Gray has joined the company as vice president of its Business Group. Gray will lead and direct the marketing and selling of ATC's proprietary sound products to companies in the digital signage, display and consumer markets. Gray has experience in designing and executing national and international sales plans and is well versed in market identification, vertical market penetration, pricing and forecasting.
    Gray's previous experience includes positions with Ethertronics Corporation (president), Novatel Wireless (senior vice president of sales and marketing), Uniden Electronics (general manager, Data Products), and U.S. Robotics (director of product marketing).
    "I am excited to have Bruce drive and grow our commercial business," said Kalani Jones, president and chief operating officer of American Technology Corporation. "Bruce has an extensive senior sales and marketing background and has been successful in establishing, managing and building businesses. Over the last nine months, we have made good progress developing large HSS(R) applications for companies in the emerging digital signage industry. With the addition of Bruce's sales and marketing leadership, we expect to significantly increase HSS product sales."
    Bruce Gray commented, "While ATC has a remarkable array of innovative sound reproduction technologies, I am most impressed with HSS technology and its capability to give digital signage a unique voice. Even though the digital signage industry is in its infancy, it has the potential for substantial near-term and future growth. With the assistance of a seasoned sales and marketing staff, I strongly believe ATC's revolutionary sound reproduction technologies will help enable many industrial and commercial products, applications and industries, and further contribute to ATC's leadership in Shaping the Future of Sound(R)."

    About American Technology Corporation

    American Technology Corporation is Shaping the Future of Sound(R) by developing, manufacturing and globally distributing its proprietary sound technologies and products which include: the award-winning HSS(R) (HyperSonic(R) Sound technology); LRAD(TM) (Long Range Acoustic Device); NeoPlanar(R) planar magnetic technology and others. The Company is establishing a strong portfolio of patents, trademarks, and intellectual property including over 160 U.S. and foreign patents and patent filings to date. For more information on the company and its technologies and products please visit our web site at www.atcsd.com.

    About Mr. Gray's Compensation

    In accordance with Nasdaq Marketplace Rule 4350, as amended, we granted a stock option to Mr. Gray exercisable for 100,000 shares of common stock as an inducement material to Mr. Gray entering into employment with us. This option was approved by our Compensation Committee and granted without stockholder approval pursuant to NASDAQ Marketplace Rule 4350(i)(1)(A)(iv). The option has an exercise price of $8.90, which was the fair market value of our common stock on the grant date, is exercisable for five years (subject to earlier termination upon termination of his continuous service), and vests 25% on the first anniversary of grant, and then in equal quarterly installments over the following three years of continuous service.

    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, 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 changes in the sound reproduction industry, the need for market acceptance of our sound reproduction technologies, entry of competitors in the sound reproduction market, the possibility our intellectual property protections will not prevent others from marketing products similar to or competitive with our products, our ability to develop future products which maintain a competitive advantage over competing products, pricing pressures, technology shifts, potential technical or manufacturing difficulties that could delay products, possible government regulations, warranty or other claims, general economic and political factors which influence buying decisions, 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. American Technology Corporation disclaims any intent or obligation to update those forward-looking statements, except as otherwise specifically stated.

--30--SW/la*

CONTACT: American Technology Corporation Robert Putnam, 858-679-3168 (Investor relations) robert@atcsd.com Don Mathias, 949-855-4520 (Media) dwmath@aol.com

KEYWORD: CALIFORNIA INDUSTRY KEYWORD: HARDWARE MUSIC MANAGEMENT CHANGES SOURCE: American Technology Corporation

Copyright Business Wire 2005