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
Site Index Page