American Technology Corporation Reports Non-Executive Compensation

    Business Editors

    SAN DIEGO--(BUSINESS WIRE)--Jan. 7, 2005--American Technology Corporation (ATC) (Nasdaq:ATCO), an innovator of proprietary sound reproduction technologies, today announced that on November 16, 2004 the company granted inducement stock options to certain of its new employees. The options were granted without stockholder approval to two new non-executive employees as an inducement material to the individuals' entering into employment with the company, and the issuances were approved by the company's compensation committee pursuant to Nasdaq Marketplace Rule 4350(i)(1)(A)(iv). The options are exercisable for an aggregate of 4,000 shares of common stock with an exercise price of $6.70 per share. Each option has a five year term and vests 25% on the first anniversary of the grant date and then quarterly thereafter for the next 12 quarters, subject to continued employment and other conditions. The company previously disclosed the grant of these options on a Form 8-K filed with the Securities and Exchange Commission on November 22, 2004.

    About American Technology Corporation

    American Technology Corporation is Shaping the Future of Sound(R) by developing, manufacturing and globally distributing its proprietary sound technologies and products which include: the award-winning HSS(R) (HyperSonic(R) Sound technology); LRAD(TM) (Long Range Acoustic Device); NeoPlanar(R) planar magnetic technology and others. The Company is establishing a strong portfolio of patents, trademarks, and intellectual property including over 160 U.S. and foreign patents and patent filings to date. For more information on the company and its technologies and products please visit our web site at www.atcsd.com.

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CONTACT: American Technology Corporation Robert Putnam, 858-679-3168 (Investor Relations) robert@atcsd.com

KEYWORD: CALIFORNIA INDUSTRY KEYWORD: HARDWARE COMPUTERS/ELECTRONICS TELECOMMUNICATIONS SOURCE: American Technology Corporation

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