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American Technology’s Enhanced LRAD 1000 Selected by Navy

Maritime Activity Reports, Inc.

October 4, 2007

American Technology Corporation (ATC) (NASDAQ: ATCO), a leading innovator of directed sound products and technologies, announced its enhanced LRAD 1000® has been selected by the U.S. Navy as its acoustic hailing and warning device (AHD) for Block 0 of the Shipboard Protection System. The multi-year contract, issued by the Naval Surface Warfare Center Crane Division, opens the door for ATC's enhanced LRAD 1000 to be deployed throughout the U.S. Navy's fleet. A $500,000-plus opening order under the contract is scheduled to ship this quarter. Developed for military force protection in 2002, ATC created the directed acoustic hailing and warning device market category with the introduction of its proprietary LRAD technology and products. 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.

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