EXHIBIT 99.1

FOR IMMEDIATE RELEASE

                    AMERICAN TECHNOLOGY CORPORATION ANNOUNCES
                       $10 MILLION INSTITUTIONAL FINANCING

          New Capital to Accelerate Marketing, Sales and Deliveries of
                   ATC's Core Sound Technologies and Products

(SAN DIEGO, CALIFORNIA - July 17, 2003) - American Technology Corporation
(NASDAQ: ATCO) announced today that it received $10 million in institutional
financing through the sale of common shares and warrants to selected
institutional investors. The institutions are well known technology investors
including Vertical Ventures Investments, Special Situations Funds and SDS
Merchant Fund.

The company expects to use the net proceeds from this institutional financing
for marketing, sales and deliveries of its proprietary core sound technologies
and products including Generation II HSS(R) highly directional sound systems,
its long range sound products (LRAD(TM) and HIDA(TM)) and thin panel
NeoPlanar(R) speakers as well as for general working capital.

"This funding accelerates our corporate mission of Shaping the Future of
Sound(TM) by strengthening our balance sheet and providing the resources to
expand our sales force and speed deliveries of our revolutionary audio products
to original equipment manufacturers and government and military agencies," said
James Irish, CEO of American Technology Corporation.

The proceeds are in exchange for 1,818,180 shares of the company's common stock
and warrants to purchase 454,547 shares of the company's common stock. The
shares of common stock were sold at a price of $5.50 per share and the warrants
have an exercise price of $6.75 per share. The warrants are immediately
exercisable and expire in July 2007. If exercised, the warrants could generate
up to an additional $3 million in proceeds to American Technology.

The common stock and warrants to purchase common stock have not been registered
under the Securities Act of 1933, as amended, and may not be offered or sold in
the United States without a registration statement or exemption from
registration. The company has agreed to file a registration statement on the
securities. The company's Form 8-K, to be filed with the SEC, will provide a
description of this transaction and copies of the executed documents.

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 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.
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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.

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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