ATC Receives $500,000 in LRAD Orders

Tuesday, January 20, 2009

American Technology Corporation (ATC) (NASDAQ: ATCO), a provider of directed sound products and technologies, announced it has received new LRAD orders from the U.S. Army and a commercial shipping customer. The orders, totaling approximately $500,000, are scheduled to ship this
quarter.

The U.S. Army ordered the additional LRAD 500X systems for deployment and for operational testing and evaluation as part of its Acoustic Hailing Device (AHD) program. In May 2007, ATC won a competitive proposal to supply a next generation AHD for the U.S. Navy and U.S. Army’s small vessels and vehicles. The LRAD 500X exceeded the voice transmission requirements of the joint project team and is the only device that meets the performance, weight, and size requirements for both armed services.

The commercial shipping customer purchased additional LRAD systems for their Gulf of Aden transits after two years of successful LRAD 1000 deployments operating on ATC’s proprietary Scram Carts.

“Commercial shipping customers frequently order one system per vessel and, after the utility of LRAD is proven, additional units per vessel are subsequently purchased,” said Scott Stuckey, ATC’s vice president of business development. “With the swarming tactics being used by pirates, this customer required simultaneous LRAD coverage along multiple threat axes of their vessels. Many of our commercial maritime customers have successfully used LRAD to help deter pirate attacks on multiple occasions off the Horn of Africa.”

“Our Scram Cart provides a mobile mounting platform, power supply and charging station for LRAD and accessories such as high candle power lights and lasers,” continued Stuckey. “This wheeled system enables a single operator to rapidly move a mounted LRAD and provides enough power to remotely operate the system for over six hours on battery and indefinitely when connected to the ship.”

ATC developed its proprietary LRAD product line to assist military and security forces in determining the intent of potential threats at safe distances, providing authorized personnel time and distance to scale their response based on a threat’s actions. LRAD is uses directionality and focused acoustic output to clearly transmit critical information, instructions and warnings at distances in excess of 1000 meters. LRAD can be manually operated or integrated into a remotely controlled security network’s command and control center. Through the use of powerful voice commands and deterrent tones, LRAD can create large safety zones, resolve uncertain situations, and potentially save lives on both sides of the device.

“Over the past two years, ATC has made a significant investment in internally funded research and development to establish a leading position in providing the U.S. Military and maritime companies with products and solutions that meet their stringent requirements,” said Tom Brown, president and CEO of ATC.

(www.atcsd.com)

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