Exhibit 99.2

                             LETTER TO SHAREHOLDERS
                       OF AMERICAN TECHNOLOGY CORPORATION

This letter is a direct  communication from the Chairman of American  Technology
Corporation (NASDAQ: ATCO).

SAN DIEGO,  California,  September  24, 2003 - American  Technology  Corporation
(NASDAQ: ATCO)

On Monday we announced the  resignation  of Mr. James M. Irish as CEO. Mr. Irish
resigned  so that he could  pursue  other  opportunities.  We do not believe the
timing or fact of Mr.  Irish's  departure  reflects  adversely on the  company's
business operations, prospects or finances.

Some recent press  revisited the "going concern"  qualification  included by our
auditors  in their  opinion  on our  financial  statements  for the  year  ended
September  30,  2002.  We expect to report over $9.5  million of cash on hand at
fiscal  year end on  September  30,  2003 with no  long-term  debt.  This is the
strongest  financial position of our corporate history and we expect will remove
the factors causing our auditors to qualify their opinion last year.

We are in low volume production of Generation II HSS systems at the present time
and  expect to  transition  to higher  volumes in the  coming  quarter.  New HSS
systems are built with a  free-form  emitter  design  that no longer  requires a
vacuum.  Generation II employs a proprietary PVDF film developed and produced to
our  specifications.  The lead time for film  meeting  our  requirements  is one
gating factor to increased production.  We are pleased by the performance of the
new, less costly HSS emitter.  Distortion  levels are reduced while  reliability
and durability is improved.

We  are  assembling  emitters  in-house  and  Magnotek  Manufacturing  Corp.  is
producing the  electronics  for HSS systems.  We are focused on delivering  this
exciting new product in increased quantities as rapidly as possible.  Generation
III, with an enhanced more cost-effective  electronics package, is in design and
testing  for  2004  rollout.  Demand  for HSS is  strong,  which  we  expect  to
demonstrate as production capacity develops.

Our military business for LRAD/HIDA  continues to develop rapidly.  We have been
engaged in ramping up production of LRAD/HIDA  systems and  developing  specific
modifications to these products to meet customer  requirements.  These units are
produced  in-house  at ATC.  Carl  Gruenler,  our  vice  president  of  Military
Operations,  is leading the team that is developing this important  business for
ATC.

We believe we have the  infrastructure  in place and a  qualified  team with the
talents necessary to expand and develop our business.  We expect to increase our
sales  and  marketing  staff  to  meet  growing  business  demand.   We  have  a
comprehensive patent portfolio. Recent patent actions that have greatly extended
our  protection   especially  for  the  new  HSS  emitter  and  next  generation
electronics.  We will continue to focus on Shaping the Future of Sound(TM)  with
our innovative products.

/s/ Elwood G. Norris
Elwood G. Norris
Chairman






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