AMERICAN TECHNOLOGY CORPORATION Condensed Balance Sheets (000`s omitted except per share amounts)

September 30, 2005 2004 ----------------------------------------------------------------------

ASSETS Current Assets: Cash $10,348 $4,179 Accounts Receivable 880 927 Inventories 1,800 651 Prepaid expenses and other 201 156 --------- -------- Total current assets 13,229 5,913 Equipment, net 607 453 Patents, net 1,373 1,279 --------- -------- Total assets $15,209 $7,645 --------- --------

LIABILITIES AND STOCKHOLDERS` EQUITY Current Liabilities: Accounts payable $1,985 $1,300 Accrued liabilities: 1,224 1,129 Derivative warrant instrument 282 - Capital lease short-term portion 12 11 --------- -------- Total current liabilities 3,503 2,440 --------- -------- Long-Term Liabilities: - Derivative warrant instrument 1,564 Capital lease long-term portion - 12 --------- -------- Total liabilities 5,067 2,452 --------- -------- Total stockholders` equity 10,142 5,193 --------- -------- Total liabilities and stockholders` equity $15,209 $7,645 --------- --------

American Technology Corporation Investor relations: Robert Putnam, 858-679-3168 [email protected]