Press releases

29.03.2007

atcsd.com

American Technology ships $1.5 million in new LRAD® orders

LRAD Orders Through Major Defense Firms Increasing,

Company Ships First LRAD-R™ Order

SAN DIEGO, CA, March 29, 2007 - American Technology Corporation (ATC) (NASDAQ: ATCO), a leading innovator of directed sound products and solutions, announced today it has shipped new orders of its patent pending Long Range Acoustic Devices (LRAD®) and support equipment totaling approximately $1.5 million this quarter. The orders included the Company’s first shipment of LRADs to the Singapore Navy through ST Engineering. The majority of the LRAD shipments are scheduled for deployment in military and commercial security applications.

ATC also announced it has shipped its first LRAD-R™ order and has also received an initial order of LRAD-R’s from L-3 Communications as the Company accelerates its efforts to deploy its LRAD product suite through major defense contractors.

LRAD-R is ATC’s directed acoustic hailing and deterrent system, which can be remotely operated across an IP network. LRAD-R consists of an LRAD emitter head, pan/tilt system for precise audio targeting and an easy to use software control interface. The system can be upgraded with other integrated options (radar, cameras, infrared sensors, illuminators and other detection/deterrent devices) creating a complete unmanned perimeter security solution. LRAD-R has been specifically developed for use in a variety of harsh military and commercial security applications where low maintenance, trouble-free operation is a must.

ATC is showcasing LRAD-R at ISC West 2007, which is being held this week in Las Vegas. ISC West is one of the largest and most comprehensive security and systems integrator shows in the U.S. “We are pleased to be demonstrating this integrated security solution which allows the remote operator to find, see, communicate and influence a potential threat at distance,” said Tom Brown, president and chief executive officer of ATC.

“In order to increase revenues and our leadership in hardened directed sound products, we are working with major national and international defense firms to integrate our LRAD products into their programs and systems,” continued Brown. “While we see emerging markets for all our LRAD products, we believe our LRAD-R will quickly become our flagship product and the largest contributor to the Company’s revenue and margin growth.”

LRAD communicates in excess of 500 meters with authority and high intelligibility through vocal commands and powerful warning tones to influence behavior, gain compliance, and determine intent. ATC’s proprietary technology achieves high intensity 15 – 30º beam directionality with very low power. LRADs are currently deployed in a variety of government, military and commercial security applications around the world, including military deployments with the U.S. Marine Corps, U.S. Army, and U.S. Navy.

“We are making progress in building markets and growing the installed customer base for LRAD and all our directed sound products as we expect revenues for this quarter (fiscal Q2 – 2007) to be improved over revenues for the comparable fiscal Q2 – 2006,” concluded Brown. “LRAD-R is an example of our focus as a management team to continue to improve our product offerings and grow our business.”

About American Technology Corporation

San Diego-based American Technology Corporation (NASDAQ: ATCO) provides directed audio solutions that place clear, highly intelligible sound exactly where needed. ATC’s LRAD systems have been in use since 2003 by the U.S. Army, Navy and Marines in the Middle East and Iraq. LRAD systems are also in use by police departments, cruise lines, commercial maritime vessels, the U.S. Border Patrol and the National Guard. For more information on American Technology Corporation and its directed sound products and technologies, please go to www.atcsd.com.

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, the performance of our management team, market acceptance of our directed sound technologies and products, entry of competitors, the possibility our intellectual property protections will not prevent others from marketing products similar to or competitive with our products, potential technical or manufacturing difficulties that could delay product deliveries or increase warranty costs, 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. For more information regarding other potential risks and uncertainties, see the "Risk Factors" section of the company's Form 10-K for the year ended September 30, 2006 and the company’s Form 10-Q for the quarter ended December 31, 2006. American Technology Corporation disclaims any intent or obligation to update those forward-looking statements, except as otherwise specifically stated.

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