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## American Technologies Corporation

### of San Diego, California

    FOR IMMEDIATE RELEASE

    AMERICAN TECHNOLOGY CORPORATION AWARDED

    FIRST MILITARY CONTRACT FOR
    HSS TECHNOLOGY

    Company Expects Further Contracts for

     HSS Military Applications

    (SAN DIEGO, CA -- August 27, 1998) - American Technology
    Corporation (OTC: ATCO), announced today that it has been
    awarded its first military contract to assess the
    applicability of using HyperSonic (tm) Sound (HSS)
    technology to detect infrasonic acoustics associated with
    high energy events important to the Nuclear Treaty Program
    Office. The Company expects that this contract and expected
    follow-on work will generate approximately $400,000 in
    revenue over the next six months.

    "This first military contract is the culmination of months
    of work and serves as a springboard for significant
    opportunities with the military not only for HSS, but for
    our other technologies as well," said Con Brosnan,
    president and CEO. "Because HSS is the first technology to
    give sound projectable directionality, we expect this award
    to be the beginning of additional military application
    contracts."

    [Eleanor's note: "Directionality" is the clue here, this
    is an alternate form, less sophisticated but still feasible,
    of creating "voice-to-skull" effects.  John Williams of
    Consumertronics told me in an email he also has an
    acoustic voice-to-skull weapon.  Just wait until your
    neighbourhood hackers get hold of this gem.]

    HyperSonic Sound is an award-winning patented technology in
    sound reproduction that employs ultrasonic tones in a new
    process to produce sound directly in the air. HSS
    eliminates many forms of distortion and reduces room
    acoustical effects. HSS can project audible sound to
    virtually any listening environment creating many new sound
    applications previously impossible with existing speaker
    technology.

    American Technology Corporation is a globally recognized
    developer and licenser of patented and patents-pending
    leading-edge sound reproduction technologies and electronic
    products. ATC's technology  portfolio includes the
    award-winning HSS and SFT sound reproduction technologies,
    Global Position Satellite (GPS) Tracker technology, Jet
    Engine Noise Reduction technology and AM/FM/Solar Sounds
    radio products. For more information on the Company and its
    technologies and products visit www.atcsd.com.

                        # # #

    FOR FURTHER INFORMATION CONTACT:

    Robert Putnam
    (619) 679-3168
    __________________________________________________
    Wendy Ravenel
    Investor Relations
    American Technology Corp.
    13114 Evening Creek Drive South
    San Diego, CA 92127
    (619) 679-2114
    http://www.atcsd.com
    investor@atcsd.com

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