American Technology Announces New HSS Licensees and Outlines Progress and Enhanced Business Strategy At Annual General Meeting
Company Also Announces Volume Production of NeoPlanar® Audio Products
SAN DIEGO--(BUSINESS WIRE)--May 21, 2002-- American Technology Corp. (Nasdaq:ATCO - News), a licensor and producer of innovative new sound technologies, announced yesterday commercial production of its revolutionary HSS® as well as volume production of its NeoPlanar sound products at its Annual General Meeting of Shareholders held in San Diego.
Both HSS and NeoPlanar products were demonstrated to those in attendance.
Following the formal business of the meeting, which included the ratification of BDO Seidman LLP as the company's independent auditors for its fiscal year ending Sept. 30, 2002, and the election of Elwood G. Norris, Richard M. Wagner, David J. Carter, O'Connell J. Benjamin, Terry Conrad and Daniel W. Hunter to the Board of Directors, Elwood Norris, chairman and CEO and Terry Conrad, president gave a detailed business and technology presentation to the shareholders present.
Norris presented ATC's enhanced corporate strategy of licensing in concert with manufacturing finished drivers, emitters/transducers and electronics to drive revenue growth as well as capture greater product margins on ATC's sound technologies as they begin to emerge in products throughout the world. Norris outlined the progress with ATC's current licensees, including Harman International, Dolby, HST Inc., Amtec Manufacturing, Americhip, Showorks Entertainment Group, International Robotics Inc., Dimension One Spas, Thomson Multimedia, and eSOUNDideas Inc.
Norris also announced the company's first two international licensees, NetSound Digital Technology and W&MEDIA srl. These companies are representing and introducing HSS technology and products in Greece and Italy respectively.
Expanding on volume production of HSS and NeoPlanar components, Norris summarized the production science employed in developing high-volume production of each of these new technologies. He also described how standard size components can be implemented in a wide range of products and applications. ATC's production partnership with HST Inc. provides for rapid growth in capacity for high-volume customers.
Expanding on yesterday's announcement, Norris indicated that existing HSS licensees and customers have requested quantities that will absorb ATC's full monthly HSS capacity to this fall. Production capacity of HSS is expected to reach 2,500 units in August and grow thereafter. Further details on specific firm orders, backlog, shipments and production capacity will be provided as HSS introduction accelerates.
Norris also indicated plans to initially develop NeoPlanar component manufacturing capacity up to 20,000 units per month by this fall.
Also in his presentation, Norris detailed the progress made over the last year on all of the Company's sound technologies including HyperSonic Sound®, NeoPlanar, PureBass®, Stratified Field®, Non-Lethal weapons and noise cancellation. Norris announced that ATC was recently granted its primary PureBass patent (US 6,389,146). Under the Company's enhanced business strategy, revenue sources will be derived from sales of patented system components, license fees from OEMs (original equipment manufacturers), and non-recurring engineering fees for specific OEM designs. He noted that Dolby, Gemstar and other well-known licensing companies used manufacturing and the early sales of self-branded products and components to drive awareness and acceptance of their now globally-recognized technologies and products.
Terry Conrad outlined the company's progress and future in government and military-related business. With the assistance of General Dynamic's Bath Iron Works and Armament Systems divisions, ATC has established business relationships with several government agencies including the Pentagon, Naval Research Lab, NCIS, NCPA, Army Tacom-Ardec and the Navy. Currently, all government and military business is focused on HSS, NeoPlanar and High Intensity Non-Lethal acoustic weapons.
Conrad stated that ATC has recorded more government and military-related revenue during the first four months of this calendar year than it had the three previous years combined. He expects government and military-related business and revenue to grow rapidly throughout this calendar year and into 2003 due to the compelling advantages offered by HSS and NeoPlanar technologies for military and government applications.
"With the culmination of several years of intensive research and development on our sound technologies, our extensive intellectual property protection, which currently includes over 124 U.S. and foreign patents and patent filings, and the manufacturing expertise of HST, Inc., we are ready to revolutionize the world of audio technology in the consumer, commercial, and military markets," Norris concluded.
American Technology recently announced a Letter of Intent to acquire in a stock transaction San Diego-based HST Inc. HST is a rapidly growing, profitable designer and manufacturer of technologically advanced components for branded consumer products. The acquisition of HST is subject to a number of preconditions. Provided all conditions are satisfied, the company expects to consummate the transaction by end of its fiscal year ending Sept. 30, 2002. However, there can be no assurance that all conditions will be satisfied or that if satisfied, the transaction will close when expected.
In another corporate development, the company's Retail and Consumer Products division has recently received a license from Major League Baseball to sell its radio products featuring logos from all of the teams in the Major League.
About the Company's Sound Technologies
HSS (HyperSonic Sound) is a revolutionary proprietary sound technology that enables extremely directional placement of audio from a transducer up to several hundred feet away.
American Technology's NeoPlanar technology is a revolutionary sound reproduction system employing a special thin film, and a single layer of ultra-thin high-energy neodymium magnets. The most important quality of NeoPlanar loudspeakers is the ability to provide extremely wide band, low distortion performance from a device as thin as 1/8th inch and as light as a few ounces.
PureBass is ATC's patented, wide-range, low frequency subwoofer technology featuring reduced distortion, superior sound quality and superior output capability in a small size.
Stratified Field (SFT®) technology is the company's thin, formable, non-magnetic speaker technology that utilizes advanced material research to deliver unique design concepts and high-end sound.
About American Technology Corp.
American Technology is Shaping the Future of Sound® by developing and licensing its technology and intellectual property portfolio which includes: the award-winning HSS® (HyperSonic® Sound Technology); Stratified Field® Technology; NeoPlanar®; PureBass® Sub-Woofer Technology; Non-Lethal weapons technology and FM Sounds(TM) consumer radio products. The company is establishing a strong portfolio of patents, trademarks and know-how including over 124 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 satisfaction of conditions precedent, development of future products, technological shifts, potential technical 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.
Editors Note: HyperSonic Sound, HSS, NeoPlanar, Stratified Field, PureBass, FM Sounds, 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.
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Contact:
American Technology Corp.
Investor Relations:
Robert Putnam, 858/679-3168
robert@atcsd.com
or
Media Inquiries:
Donald Mathias, 949/855-4520
714/931-6846 (Cell)
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