## U.S. Navy Contract
for Ultrasonic Acoustic Heterodyning Technology

### Announced April 12, 2000

This announcement from American Technology Corp., the patent holder for acoustic heterodyning technology, clearly shows that the use of ultrasound for transmission of voice over significant distances is a reality. When voice-FM is used in place of normal, hearable audio, you have one method of targetting a person at a distance, even in a crowd, with hypnotic commands which cannot be heard by the ears but which are heard and understood by the mind.

This development in covert hypnosis technology underscores the urgent need for debate and controls on all such anti-personnel weapons-capable technologies, instead of the stone silence all governments have maintained to this date.

    Date sent:        Wed, 12 Apr 2000 07:37:24 -0700
    To:               investor@atcsd.com
    From:             Wendy Ravenel
    Subject:          ATCO Press Release 4/12/00 (1 of 2)

    FOR IMMEDIATE RELEASE

    AMERICAN TECHNOLOGY CORPORATION ANNOUNCES LICENSE WITH THOMSON MULTIMEDIA

    NAVSEA Contract

    Mr. Brosnan then announced that the PMS 400 division of NAVSEA has awarded
    a $218,000 research and development contract to the company and General
    Dynamics Bath Iron Works to test ATC's patented HyperSonic(TM) Sound
    technology (HSS(TM)) on board a U.S. Navy Aegis Destroyer under
    construction at Bath Iron Works. Among its many applications,  HSS
    technology enables ship-to-ship communications without breaking radio
    silence.  HSS can also target selected individuals in a group or in a noisy
    environment and deliver audio to that person.  Bath Iron Works, a General
    Dynamics Company, supplies technology and shipbuilding services to the U.S.
    Navy. General Dynamics employs 43,000 people worldwide and has annualized
    sales of approximately $10 billion.

    Elwood G. Norris, Founder of the company, demonstrated voice and music
    content with exceptional clarity and bandwidth through the latest,
    proprietary HSS emitter and modulator technologies to shareholders at the
    meeting in Escondido, California.

    Patents

    Mr. Brosnan announced that as of the date of the meeting, the company had
    been granted nine (9) patents on HSS and has another nine (9) patents
    pending. Additionally, the company has eight (8) patents pending on its SFT
    technology and two (2) patents pending on its MFW(TM) subwoofer technology.

    NAVSEA AWARDS $218,000 RESEARCH AND DEVELOPMENT CONTRACT TO BATH IRON WORKS
    AND AMERICAN TECHNOLOGY CORPORATION FOR TEST APPLICATION OF HYPERSONIC(TM)
    SOUND TECHNOLOGY

    (SAN DIEGO, CALIFORNIA - April 12, 2000) - The PMS 400 division of NAVSEA
    has awarded a $218,000 research and development contract to General
    Dynamics Bath Iron Works and American Technology Corporation (NASDAQ: ATCO)
    to test HyperSonic Sound Technology on board a U.S. Navy Aegis Destroyer
    under construction at Bath Iron Works.

    HyperSonic Sound Technology, under development in the laboratories of
    American Technology Corporation in San Diego, California, is a
    revolutionary sound reproduction system. The most important quality of
    HSS(TM) is the ability to direct or focus sound into a tight beam, similar
    to the beam of light from a flashlight. No other audio reproduction device
    available today provides this powerful feature. Not since the development
    of the "cone" loudspeaker more than 75 years ago has any technology
    provided such significant departure from conventional speakers and such a
    remarkable approach to the reproduction of sound.

    About Bath Iron Works

    Bath Iron Works of Bath, Maine, a leader in surface combatant design and
    construction, employs 7,600 people.  It is a subsidiary of General Dynamics
    (NYSE:GD), headquartered in Falls Church, Virginia.  General Dynamics has
    leading market positions in shipbuilding and marine systems, land and
    amphibious combat systems, information systems, and business aviation.  The
    company employs 43,000 people worldwide and has annualized sales of
    approximately $10 billion.  More information about General Dynamics can be
    found on the worldwide web at www.generaldynamics.com.

    CONTACTS:

    ATC:  Robert Putnam or Wendy Ravenel, (858) 679-3168, robert@atcsd.com
    or wendy@atcsd.com

    Bath Iron Works:  Susan Pierter, (207) 442-1149, susan.pierter@biw.com

    _____________________________________________________
    Wendy Ravenel
    Shareholder Relations/Public Relations

    American Technology Corp.
    13114 Evening Creek Drive South
    San Diego, CA 92128
    (858) 679-2114 PHONE
    (858) 679-0545 FAX
    Note new area code (858) as of June 1999
    http://www.atcsd.com
    investor@atcsd.com

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