Exhibit 99.1



                         AMERICAN TECHNOLOGY CORPORATION
                       ANNOUNCES SETTLEMENT WITH HST, INC.


(SAN DIEGO,  CALIFORNIA - September 24, 2003) -American  Technology  Corporation
(NASDAQ:  ATCO) today  announced  the  settlement of its legal dispute with HST,
Inc.

The Company  agreed to pay a total of $458,000  for HSS  related  inventory  and
production  costs,  and to issue 100,000  shares of  restricted  common stock as
settlement of all  litigation.  As part of the  settlement,  the Company and HST
also  entered  into  a  nonexclusive  royalty-bearing  license  allowing  HST to
manufacture  and  sell  speakers  based  on ATC's  Stratified  Field  technology
(SFT(R)) and a related ATC subwoofer technology. The Company will amend its Form
10-Q for the quarter  ended June 30,  2003,  where a  non-binding  agreement  in
principle to settle this litigation was first  disclosed,  to reflect a $950,000
accrual  during the third  fiscal  quarter for the  estimated  cash and non-cash
costs  of this  settlement.  The  Company  does not  expect  to  record  further
substantial charges related to this settlement.

"We are pleased  this  agreement  ends the legal  proceedings  and  provides the
opportunity for future revenues from Stratified Field Technology products," said
Elwood G.  Norris,  Chairman of  American  Technology  Corporation.  "Settlement
allows us to focus on growing our business through increasing  deliveries of our
revolutionary HSS, NeoPlanar(R), LRAD(TM) and HIDA(TM) sound products."

Stratified Field is a thin film,  non-magnetic,  speaker  technology that allows
for flexible  form factors and offers  high-end,  professional  sound quality at
competitive pricing.

About American Technology Corporation

American Technology  Corporation is Shaping the Future of Sound(R) by developing
and licensing its technology and intellectual property portfolio which includes:
the  award-winning  HSS(R)   (HyperSonic(R)   Sound  Technology);   NeoPlanar(R)
Technology; PureBass(R) Sub-Woofer Technology; HIDA(TM) (High Intensity Directed
Acoustics),  LRAD(TM)  (Long  Range  Acoustic  Device)  and  SFT(R)  (Stratified
Field(R) Technology). The Company is establishing a strong portfolio of patents,
trademarks,  and know-how including over 138 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.


Safe Harbor  statement  under the Private  Securities  Litigation  Reform Act of
1995:  This  document  contains  forward-looking  statements  relating to future
transactions,  performance,  technology and product development which may affect
future results and the future viability of the company.  Actual results could be
affected  or differ  materially  from  those  projected  in the  forward-looking
statements as a result of risks and uncertainties,  including the ability of the
company  to  continue  as a  going  concern,  development  of  future  products,
technological  shifts,  potential  technical or manufacturing  difficulties that
could  delay  new  products,  competition,  general  economic  factors,  pricing
pressures,  the uncertainty of market acceptance of new products and services by
OEMs and end-user  customers,  and other factors identified and discussed in the
company's most recent filings with the Securities and Exchange Commission. These
forward-looking   statements   are  based  on   information   and   management's
expectations  as of the date hereof.  Future results may differ  materially from
the company's current  expectations.  American Technology  Corporation disclaims
any intent or obligation to update those forward-looking  statements,  except as
otherwise specifically stated by it.

                                      # # #





Editors Note:  HyperSonic  Sound,  HSS,  NeoPlanar,  PureBass,  HIDA,  LRAD, and
Shaping the Future of Sound are trademarks or registered  trademarks of American
Technology  Corporation.  All other company,  product, and service names are the
property of their respective owners.


FOR FURTHER INFORMATION CONTACT:

Investor relations:
Robert Putnam
(858) 679-3168
robert@atcsd.com

Media inquiries:
Don Mathias
(949) 855-4520
dwmath@aol.com