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## American Technologies Corporation

### of San Diego, California

### Announces patent hurdle to commercial relase of their electronic ventriloquism device, originally announced as the "acoustic heterodyne", has been cleared. We e-weapons victims await the release of this device, which can be set up to provide one form of "voice-to-skull" technology.

    Date sent:        Thu, 20 Aug 1998 08:41:33 -0700
    To:               investor@atcsd.com
    From:             Wendy Ravenel
    Subject:          ATCO Press Release 8/20/98

    FOR IMMEDIATE RELEASE

    AMERICAN TECHNOLOGY CORPORATION ALLOWED
    FIRST U.S. PATENT ON HSS(tm) TECHNOLOGY

    Hires Director of Technology Transfer

    (SAN DIEGO, CA -- August 20, 1998) - American Technology
    Corporation (OTC: ATCO), announced today that the U.S.
    Patent and Trademark Office (PTO) has issued a Notice of
    Allowance on the first of many HyperSonic(tm) Sound (HSS)
    and Stratified Field(tm) (SFT(tm)) technology patent
    filings.

    "The PTO's decision to allow the claims on our first HSS
    patent is an important milestone in the protection of our
    sound reproduction technologies," said Con Brosnan,
    president and CEO of ATC. "We are confident we will receive
    many more allowances on our expanding HSS and SFT
    technology portfolio to provide our licensing partners
    broadly protected intellectual property. HSS and SFT
    provide superior audio solutions that we believe will
    enable ATC to quickly become an important player in the
    greater than $75 billion consumer electronics industry."

    HyperSonic Sound is an award-winning proprietary 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 uses little space and weight and is
    comparatively efficient and cost competitive relative to
    direct radiating loudspeakers. The laser-like HSS
    ultrasonic beam can project audible sound to virtually any
    listening environment creating many new sound applications
    previously impossible with existing speaker technology.

    SFT is a patents-pending flat panel speaker technology that
    offers superior performance over conventional loudspeakers
    in an easily manufactured ultra-thin form factor. The
    light-weight SFT speaker is totally non-magnetic and
    contains no crossover network, voice coil or other
    components found in traditional loudspeakers. SFT can be
    produced in a variety of sizes and shapes without the
    costly and exacting manufacturing process demanded of
    traditional high-end loudspeaker systems.

    ATC also announced the hiring of Terry J. Conrad as
    Director of Technology Transfer. Mr. Conrad previously
    worked for Carver Corporation where, for the last eight
    years, he held the positions of Director of Quality,
    General Manager of the Service and OEM Divisions, Director
    of Engineering and Vice President of Operations. Mr. Conrad
    responsibilities will include packaging and transferring
    SFT and HSS technical information to licensees and OEM
    manufacturers.

    "With the addition of Mr. Conrad, we have completed the
    foundation of our technical team that enables us to quickly
    and efficiently transfer both SFT and HSS to licensees,"
    said James Croft, Vice President of Engineering.  "With
    over 20 years of industry experience, Terry is a key
    addition to our staff."

    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(tm) technology, Jet
    Engine Noise Reduction technology and AM/FM/Solar
    Sounds(tm) radio products. For more information on the
    Company and its technologies and products visit
    www.atcsd.com.

    # # #

    Safe Harbor statement under the Private Securities
    Litigation Reform Act of 1995: Statements in this news
    release looking forward in time involve risks and
    uncertainties, including the risks associated with the
    effect of changing economic conditions, trends in the
    electronic products markets, variations in the Company's
    cash flow, market acceptance risks, technical development
    risks, seasonality and other risk factors detailed in the
    Company's Securities and Exchange Commission filings.

    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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