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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