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THOMSON To Manufacture SFT(TM) Speakers For Audio and Home Theater Systems

The new SFT technology could result in dramatic new styling, since speakers can now be curved and shaped.

American Technology Corp. (Nasdaq:ATCO), announced today that THOMSON Audio Hong Kong, a subsidiary of THOMSON Multimedia, has taken a technology license to manufacture and market American Technology Corp.'s (ATC) SFT thin-panel speaker technology for Audio and Home Theater Systems applications.

Dan Collishaw, general manager of THOMSON Audio Hong Kong, stated, ``We believe the SFT technology has broad applications in our global Audio and Home Theatre Systems offering. It represents a natural evolution of our efforts to improve the sound quality, and consumer listening experience of RCA and THOMSON-brand products in the Americas, Europe, and Asia. We will now add thin-panel speaker technology to the list of acoustic technologies that we have popularized -- a list that already includes Kevlar(TM) speaker drivers, dome tweeters, and integrated bi-amplified subwoofer speaker systems.

``The SFT technology allows us to enhance the traditional, proven values of electrostatic speakers (clarity, accuracy and low distortion) through its cost effective construction, superior dispersion characteristics and design flexibility that it provides,'' Collishaw said. ``Due to its flexible form factor, we will now be able to deliver Audio Systems that not only sound better, but look better as well.''

Con Brosnan, chairman, president and chief executive officer of ATC, stated, ``We are very happy to have THOMSON, a global leader in consumer electronics, committed to incorporating SFT products for their brands and markets. An important part of this agreement with THOMSON is our mutual intent to utilize THOMSON's new state-of-the-art manufacturing facilities as an OEM source to produce transducers and speakers for OEM customers or licensees who prefer subcontracting over manufacturing the components or speakers themselves. This further enhances our offering to selected customers by enabling their market entry with reduced capital needed up front.''

``One of SFT's technological advantages is its ability to be curved and shaped, which provokes and inspires a freedom of design in consumer audio heretofore unknown. The design revolution enabled by SFT inspires consumers' imagination and expectations, while the superior sound quality exceeds those expectations. A major part of our strategy has been and continues to be selective distribution with companies who seek profitable opportunities and have the scale to provide the volumes needed to support our licensing strategy. ATC prefers to have a limited number of licensees in each category and region who see the merit in broadly supporting our technologies.''

SFT is a patents-pending thin-panel speaker technology that offers superior performance over conventional loudspeakers in an easily manufactured ultra-thin form factor. Lightweight SFT is not constrained by height, width, or curvature limitations and can be included in a wide variety of commercial and consumer audio and Home Theater applications. The design potential is virtually unlimited, as these high fidelity speakers can literally be molded into virtually any shape, size, or form.

About THOMSON multimedia

The world's fourth largest producer of consumer electronics with sales of Euro 6.7 billion ($6.4 billion US) in 1999 and 55,000 salaried employees in more than 30 countries, THOMSON multimedia has four principal activities: Displays and Components, Consumer Products, New Media Services, and Patents and Licensing. The Group engineers, manufactures, and markets display components and consumer products such as televisions, VCRs, camcorders, digital decoders, DVD players, audio and communications products, as well as professional video equipment. THOMSON multimedia is listed on the Paris stock exchange (SICOVAM:18453) and the New York Stock Exchange (NYSE:TMS - news). THOMSON multimedia is the parent company of the U.S.-based THOMSON Consumer Electronics Inc. Visit THOMSON multimedia on the Web: http://www.thomson-multimedia.com/.

About American Technology

American Technology is shaping the future of sound by developing and licensing its patented and patents-pending technology portfolio which includes: the award-winning HSS(TM) (HyperSonic(TM) Sound Technology) and SFT (Stratified Field Technology) as well as MFW(TM) (Magnified Force(TM) Woofer); and FM Sounds(TM) consumer 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: Except for historical information contained here, the matters discussed in this news release contain forward-looking statements which involve risks and uncertainties, including the timely availability and acceptance of new products, the impact of competitive products and pricing, the management of growth, and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission.

Contact:

     American Technology Corp.
     Robert Putnam or Wendy Ravenel, 858/679-2114
     robert@atcsd.com or wendy@atcsd.com
     or
     THOMSON Multimedia
     Dave Arland, 317/587-4450