-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 JJbE1jSBe9cIHEzfOLjDLib8sdDDJt9IydH8YOq0VTMiKFjW/wsm4Ox4OlhGqAiP
 8PQpsaN4BDkD7sq7wKztIA==

<SEC-DOCUMENT>0001019687-04-000948.txt : 20040430
<SEC-HEADER>0001019687-04-000948.hdr.sgml : 20040430
<ACCEPTANCE-DATETIME>20040430161452
ACCESSION NUMBER:		0001019687-04-000948
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20040527
FILED AS OF DATE:		20040430
EFFECTIVENESS DATE:		20040430

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AMERICAN TECHNOLOGY CORP /DE/
		CENTRAL INDEX KEY:			0000924383
		STANDARD INDUSTRIAL CLASSIFICATION:	HOUSEHOLD AUDIO & VIDEO EQUIPMENT [3651]
		IRS NUMBER:				870361799
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-24248
		FILM NUMBER:		04770008

	BUSINESS ADDRESS:	
		STREET 1:		13114 EVENING CREEK DRIVE SOUTH
		CITY:			SAN DIEGO
		STATE:			CA
		ZIP:			92128
		BUSINESS PHONE:		6196792114
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>atc_def14a-2004.htm
<TEXT>
<!-- saved from url=(0022)http://internet.e-mail -->
<html>

<head>
<meta content="text/html; charset=iso-8859-1">
<title>(Begin typing here)</title>
<title>UNITED STATES</title>
</head>

<body>

<P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center">
<FONT FACE="Times New Roman" SIZE="4" COLOR="#000000"><B>UNITED STATES </B></FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"
ALIGN="center"><FONT FACE="Times New Roman" SIZE="4" COLOR="#000000"><B>SECURITIES AND EXCHANGE COMMISSION </B></FONT></P><P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>Washington,
D.C. 20549 </B></FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center">
<FONT FACE="Times New Roman" SIZE="4" COLOR="#000000"><B>SCHEDULE 14A INFORMATION
</B></FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="3" COLOR="#000000"><B>Proxy Statement Pursuant to Section 14(a)
of the Securities Exchange Act of 1934 </B></FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2"
COLOR="#000000">Filed by the Registrant&nbsp;&nbsp;<FONT FACE="WINGDINGS">&#120;</FONT> </FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P><P
STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Filed by a Party other than the Registrant&nbsp;&nbsp;</FONT><FONT FACE="WINGDINGS" SIZE="2"
COLOR="#000000">&#168;</FONT><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P><P
STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Check the appropriate box: </FONT></P><P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" ALIGN="center">

<TR>
<TD VALIGN="top" WIDTH="1%"> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:-2%"><FONT FACE="WINGDINGS" SIZE="2" COLOR="#000000">&#168;</FONT></P></TD>
<TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" WIDTH="48%"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Preliminary Proxy Statement</FONT></P></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="1%">
<FONT FACE="WINGDINGS" SIZE="2" COLOR="#000000">&#168;</FONT></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="top" WIDTH="48%"> <font face="Times New Roman" size="2">
Confidential, for Use of the Commission only (as permitted by Rule 14a-6(e)(2))</font></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="1%"> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:-2%">
<FONT FACE="WINGDINGS" SIZE="2" COLOR="#000000">&#120;</FONT></P></TD>
<TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" WIDTH="48%"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Definitive Proxy Statement</FONT></P></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="1%"> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:-2%"><FONT FACE="WINGDINGS" SIZE="2" COLOR="#000000">&#168;</FONT></P></TD>
<TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" WIDTH="48%"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Definitive Additional Materials</FONT></P></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="1%"> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:-2%"><FONT FACE="WINGDINGS" SIZE="2" COLOR="#000000">&#168;</FONT></P></TD>
<TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" WIDTH="51%"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Soliciting Material Pursuant to &#167;240.14a-11(c) or &#167;240.14a-12</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD></TR>
</TABLE><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center">
<FONT FACE="Times New Roman" SIZE="5"
COLOR="#000000"><B>American Technology Corporation </B></FONT></P><HR SIZE="1" NOSHADE COLOR="#000000" ALIGN="left"><P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center">
<FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(Name of
Registrant as Specified In Its Charter) </FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P><HR SIZE="1" NOSHADE COLOR="#000000"
ALIGN="left"><P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center">
<FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(Name of Person(s) Filing Proxy Statement, if
Other Than the Registrant) </FONT></P><P
STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Payment of Filing Fee (Check the appropriate
box): </FONT></P><P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><FONT FACE="WINGDINGS">&#120;</FONT>&nbsp;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">No fee required. </FONT></TD></TR></TABLE><P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT FACE="WINGDINGS" SIZE="2" COLOR="#000000">&#168;</FONT><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">&nbsp;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11. </FONT></TD></TR></TABLE><P STYLE="margin-top:0px;margin-bottom:-6px"><FONT
SIZE="1">&nbsp;</FONT></P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(1)&nbsp;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Title of each class of securities to which transaction applies: </FONT></TD></TR></TABLE><P STYLE="margin-top:0px;margin-bottom:-6px"><FONT
SIZE="1">&nbsp;</FONT></P><HR WIDTH="92%" SIZE="1" NOSHADE COLOR="#000000" ALIGN="right">
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(2)&nbsp;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Aggregate number of securities to which transaction applies: </FONT></TD></TR></TABLE><P STYLE="margin-top:0px;margin-bottom:-6px"><FONT
SIZE="1">&nbsp;</FONT></P><HR WIDTH="92%" SIZE="1" NOSHADE COLOR="#000000" ALIGN="right">
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(3)&nbsp;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the filing fee is calculated and
state how it was determined): </FONT></TD></TR></TABLE><P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P><HR WIDTH="92%" SIZE="1" NOSHADE COLOR="#000000" ALIGN="right">
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(4)&nbsp;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Proposed maximum aggregate value of transaction: </FONT></TD></TR></TABLE><P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P><HR
WIDTH="92%" SIZE="1" NOSHADE COLOR="#000000" ALIGN="right">
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(5)&nbsp;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Total fee paid: </FONT></TD></TR></TABLE><P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P><HR WIDTH="92%" SIZE="1" NOSHADE
COLOR="#000000" ALIGN="right"><P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT FACE="WINGDINGS" SIZE="2" COLOR="#000000">&#168;</FONT><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">&nbsp;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Fee paid previously with preliminary materials. </FONT></TD></TR></TABLE><P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT FACE="WINGDINGS" SIZE="2" COLOR="#000000">&#168;</FONT><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">&nbsp;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously.
Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. </FONT></TD></TR></TABLE><P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(6)&nbsp;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Amount Previously Paid: </FONT></TD></TR></TABLE><P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P><HR WIDTH="92%" SIZE="1" NOSHADE
COLOR="#000000" ALIGN="right">
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(7)&nbsp;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Form, Schedule or Registration Statement No.: </FONT></TD></TR></TABLE><P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P><HR WIDTH="92%"
SIZE="1" NOSHADE COLOR="#000000" ALIGN="right">
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(8)&nbsp;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Filing Party: </FONT></TD></TR></TABLE><P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P><HR WIDTH="92%" SIZE="1" NOSHADE COLOR="#000000"
ALIGN="right">
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(9)&nbsp;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Date Filed: </FONT></TD></TR></TABLE><P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P><HR WIDTH="92%" SIZE="1" NOSHADE COLOR="#000000"
ALIGN="right">

<hr size="3" color="#C0C0C0">
<div STYLE="page-break-before: always">
  &nbsp;
</div>

</body>

</html>

<body >
<p>
<img border="0" src="image002.jpg" width="191" height="50"></p align="center">
<p align="center"><b><font size="2">&nbsp;AMERICAN TECHNOLOGY CORPORATION</font></b></p>
<p align="center"><font size="2">13114 Evening Creek Drive South<br>
San Diego, California 92128<br>
(858) 679-2114 </font></p>
<p align="center">
<b><font size="2">NOTICE OF ANNUAL MEETING OF STOCKHOLDERS</font></b><p align="center">
<b><font size="2">TO BE HELD ON MAY 27, 2004</font></b><p>
<font size="2">TO THE STOCKHOLDERS OF AMERICAN TECHNOLOGY CORPORATION:</font><p>
<b><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b><font size="2">NOTICE
IS HEREBY GIVEN that the Annual Meeting of Stockholders of<b> AMERICAN
TECHNOLOGY CORPORATION, </b>a Delaware corporation (the "Company"), will be held
on Thursday, May&nbsp;27, 2004 at 2:00 p.m. local time at the offices of the
Company, 13114 Evening Creek Drive South, San Diego, CA 92128.</font></p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="29.333326" colspan="1" rowspan="1" >
<p>
<font size="2">1.</font></p>
</td>
<td width="581.333188" colspan="1" rowspan="1" >
<p>
<font size="2">To elect directors to serve for the ensuing year and until their successors are
elected.</font></p>
</td>
</tr>
<tr valign="top">
<td width="29.333326" colspan="1" >
&nbsp;</td>
<td width="581.333188" colspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="29.333326" colspan="1" rowspan="1" >
<p>
<font size="2">2.</font></p>
</td>
<td width="581.333188" colspan="1" rowspan="1" >
<p>
<font size="2">To ratify the selection of BDO Seidman, LLP as independent auditors of the
Company for its fiscal year ending September&nbsp;30, 2004.</font></p>
</td>
</tr>
<tr valign="top">
<td width="29.333326" colspan="1" >
&nbsp;</td>
<td width="581.333188" colspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="29.333326" colspan="1" rowspan="1" >
<p>
<font size="2">3.</font></p>
</td>
<td width="581.333188" colspan="1" rowspan="1" >
<p>
<font size="2">To transact such other business as may properly come before the meeting or any
adjournment or postponement thereof.</font></p>
</td>
</tr>
</table></div>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
foregoing items of business are more fully described in the Proxy Statement
accompanying </font> <p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors has fixed the close of business on April&nbsp;12, 2004, as
the record date for the determination of stockholders entitled to notice of and
to vote at this Annual Meeting and at any adjournment or postponement
thereof.</font></p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="359.999910" colspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" >
<font size="2">By Order of the Board of Directors</font></td>
</tr>
<tr valign="top">
<td width="359.999910" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
&nbsp;</p>
</td>
</tr>
<tr valign="top">
<td width="359.999910" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">/s/ Elwood G. Norris</font></p>
</td>
</tr>
<tr valign="top">
<td width="359.999910" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Elwood G. Norris<br>Chairman of the Board</font></p>
</td>
</tr>
</table></div>
<p>
<font size="2">San Diego, California<br>April&nbsp;29, 2004</font><p>
<b><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ALL
STOCKHOLDERS ARE CORDIALLY INVITED TO ATTEND THE MEETING IN PERSON. WHETHER OR
NOT YOU EXPECT TO ATTEND THE MEETING, PLEASE COMPLETE, DATE, SIGN AND RETURN THE
ENCLOSED PROXY AS PROMPTLY AS POSSIBLE IN ORDER TO ENSURE YOUR REPRESENTATION AT
THE MEETING. EVEN IF YOU HAVE GIVEN YOUR PROXY, YOU MAY STILL VOTE IN PERSON IF
YOU ATTEND THE MEETING. PLEASE NOTE, HOWEVER, THAT IF YOUR SHARES ARE HELD OF
RECORD BY A BROKER, BANK OR OTHER NOMINEE AND YOU WISH TO VOTE AT THE MEETING,
YOU MUST OBTAIN FROM THE RECORD HOLDER A PROXY ISSUED IN YOUR NAME.</font></b></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><hr size="3" color="#999999" STYLE="page-break-after: always">
  <font size="2">&nbsp; </font> </div><p>
<p align="center">
<b><font size="2">AMERICAN TECHNOLOGY CORPORATION</font></b><p align="center">
<font size="2">13114 Evening Creek Drive South<br>San Diego, California 92128<br>(858)
679-2114</font><p align="center">
<b><font size="2">PROXY STATEMENT</font></b><font size="2"><br></font><b>
<font size="2">FOR ANNUAL MEETING OF
STOCKHOLDERS</font></b><p align="center">
<font size="2">To be held May&nbsp;27, 2004</font><p align="center">
<b><font size="2">INFORMATION CONCERNING SOLICITATION AND VOTING</font></b><p>
<font size="2"><b>GENERAL</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
enclosed proxy is solicited to the holders of Common Stock, Series&nbsp;D
Preferred Stock and Series&nbsp;E Preferred Stock on behalf of the Board of
Directors of American Technology Corporation, a&nbsp;Delaware corporation, for
use at the Annual Meeting of Stockholders to be held on May&nbsp;27, 2004, at
2:00 p.m. local time (the "Annual Meeting"), or at any adjournment or
postponement thereof, for the purposes set forth herein and in the accompanying
Notice of Annual Meeting.  The Annual Meeting will be held at our offices, 13114
Evening Creek Drive South, San Diego, California 92128.  We intend to mail this
proxy statement, the accompanying proxy card and Notice of Annual Meeting on or
about April&nbsp;29, 2004 to all stockholders entitled to vote at the Annual
Meeting..</font><p>
<font size="2"><b>SOLICITATION</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
will bear the entire cost of solicitation of proxies, including preparation,
assembly, printing and mailing of this proxy statement, the proxy and any
additional information furnished to stockholders.  Copies of solicitation
materials will be furnished to banks, brokerage houses, fiduciaries and
custodians holding in their names shares of common stock beneficially owned by
others to forward to such beneficial owners.  We may reimburse persons
representing beneficial owners of common stock for their costs of forwarding
solicitation materials to such beneficial owners. Original solicitation of
proxies by mail may be supplemented by telephone, telegram or personal
solicitation by directors, officers or other regular employees of our company.
No additional compensation will be paid to directors, officers or other regular
employees for such services.</font><p>
<b><font size="2">VOTING RIGHTS AND OUTSTANDING SHARES</font></b><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have designated a record date of April&nbsp;12, 2004 for the Annual Meeting.
Only stockholders of record at the close of business on the record date will be
entitled to notice of and to vote at the Annual Meeting.  At the close of
business on the record date we had outstanding and entitled to vote 19,639,773
shares of common stock, 50,000 shares of Series&nbsp;D Preferred Stock and
253,250 shares of Series E Preferred Stock.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as provided below, on all matters to be voted upon at the Annual Meeting, each
holder of record of common stock and Series&nbsp;E of Preferred Stock on the
record date will be entitled to one vote for each share held, and each holder of
Series&nbsp;D Preferred Stock on the record date will be entitled to 2.4833
votes for each share held, or an aggregate of approximately 124,167 votes for
the Series&nbsp;D Preferred Stock.  With respect to the election of directors,
stockholders may exercise cumulative voting rights, i.e., each stockholder
entitled to vote for the election of directors may cast a total number of votes
equal to the number of directors to be elected multiplied by the number of such
stockholders shares (on an as-converted basis) and may cast such total of votes
for one or more candidates in such proportions as such stockholder chooses.
However, no stockholder will be entitled to cumulate votes unless the
candidate's name has been placed in nomination prior to the voting and at least
one stockholder has given notice at the meeting, prior to the voting, of his or
her intention to cumulate votes.  Unless the proxyholders are otherwise
instructed, stockholders, by means of the accompanying proxy, will grant the
proxyholders discretionary authority to cumulate votes.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><hr size="3" color="#999999" STYLE="page-break-after: always">
  <font size="2">&nbsp; </font> </div><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
votes will be tabulated by the inspector of election appointed for the meeting,
who will separately tabulate affirmative and negative votes, abstentions and
broker non-votes.  Abstentions will be counted towards the tabulation of votes
cast on proposals presented to the stockholders for the purposes of determining
the presence of a quorum and will have the same effect as negative votes.
Broker non-votes are counted towards a quorum, but are not counted for any
purpose in determining whether a matter has been approved.  If you sign your
proxy card or broker voting instruction card with no instructions, your shares
will be voted in accordance with the recommendations of the Board.</font><p>
<b><font size="2">REVOCABILITY OF PROXIES</font></b><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
person giving a proxy pursuant to this solicitation has the power to revoke it
at any time before it is voted.  It may be revoked by filing with the Chairman
of the Board at our principal executive office, 13114 Evening Creek Drive South,
San Diego, California 92128, a written notice of revocation or a duly executed
proxy bearing a later date, or it may be revoked by attending the meeting and
voting in person.  Attendance at the meeting will not, by itself, revoke a
proxy.</font><p>
<b><font size="2">STOCKHOLDER PROPOSALS</font></b><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
deadline for submitting a stockholder proposal for inclusion in our proxy
statement and form of proxy for our 2005 annual meeting of stockholders pursuant
to Rule 14a-8 of the Securities and Exchange Commission is December&nbsp;30,
2004.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
bylaws also establish an advance notice procedure with respect to certain
stockholder proposals and director nominations. If a stockholder wishes to have
a stockholder proposal considered at our next annual meeting, the stockholder
must give timely notice of the proposal in writing to the Secretary of our
company. To be timely, a stockholder's notice of the proposal must be delivered
to, or mailed and received at our executive offices not earlier than
February&nbsp;26, 2005 and not later than March&nbsp;28, 2005; provided,
however, that in the event that no annual meeting was held in the previous year
or the date of the annual meeting has been changed by more than 30 days from the
anniversary of the scheduled date of this year's Annual Meeting, notice by the
stockholder to be timely must be so received not earlier than the close of
business on the 90th day prior to such annual meeting and not later than the
close of business on the later of the 60th day prior to such annual meeting or,
in the event we first make public announcement of the date of such annual
meeting fewer than 70 days prior to the date of such annual meeting, the close
of business on the 10th day following the day on which we first make public
announcement of the date of such meeting.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
stockholder's notice to the Secretary must set forth as to each matter the
stockholder proposes to bring before the annual meeting:  (i)&nbsp;a brief
description of the business desired to be brought before the annual meeting and
the reasons for conducting such business at the annual meeting, (ii)&nbsp;the
name and address, as they appear on our books, of the stockholder proposing such
business, (iii)&nbsp;the class and number of shares which are beneficially owned
by the stockholder, (iv)&nbsp;any material interest of the stockholder in such
business and (v)&nbsp;any other information that is required to be provided by
the stockholder pursuant to Regulation&nbsp;14A under the Exchange Act, in his
or her capacity as a proponent to a stockholder proposal.</font></p align="center">
<p align="center"><b><font size="2">&nbsp;PROPOSAL 1<br>
ELECTION OF DIRECTORS </font></b></p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
are five nominees for the five Board positions presently authorized in
accordance with our bylaws.    Each director to be elected will hold office
until the next annual meeting of stockholders and until his successor is elected
and has qualified, or until such director's earlier death, resignation or
removal.  Each nominee listed below, other than Kalani Jones, is currently a
director of our company.  All current directors were elected by the stockholders
at our 2003 annual meeting.  We encourage our board members to attend our annual
meetings of stockholders.  Five members of our board attended the 2003 annual
meeting of stockholders.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5">
  <font size="2">-2-</font><hr size="3" color="#999999" STYLE="page-break-after: always">
  <font size="2">&nbsp; </font> </div><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares represented by executed proxies will be
voted, if authority to do so is not withheld, for the election of the five
nominees named below, subject to the discretionary power to cumulate votes. In
the event that any nominee should be unavailable for election as a result of an
unexpected occurrence, such shares will be voted for the election of such
substitute nominee as management may propose. Each person nominated for election
has agreed to serve if elected and management has no reason to believe that any
nominee will be unable to serve.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
five candidates receiving the highest number of affirmative votes cast at the
meeting will be elected directors.</font></p align="center">
<p align="center"><b><font size="2">&nbsp;THE BOARD OF DIRECTORS RECOMMENDS<br>
A VOTE IN FAVOR OF EACH NAMED NOMINEE </font></b></p>

<p align="center"><font size="2" face="Times New Roman">-3-</font></p>
<hr size="3" color="#C0C0C0">
<div STYLE="page-break-before: always">
  &nbsp;
</div>
<p>
<b><font size="2">NOMINEES</font></b><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
names of the nominees and certain information about them are set forth
below:</font></p>
<div align="center" style="position:relative; left: -5">
  <table border=0 cellpadding=0 cellspacing =0 width="620" >
<tr valign="top">
<td width="218" colspan="1" rowspan="1" >
<p>
<b><font size="2">Name</font></b></p>
</td>
<td width="60" align="center" >
<p>
<b><font size="2">Age</font></b></p>
</td>
<td width="32" rowspan="1" >
&nbsp;</td>
<td width="441" colspan="1" rowspan="1" >
<p>
<b><font size="2">Position and Offices</font></b></p>
</td>
<td width="156" align="center" >
<p>
<b><font size="2">Director Since</font></b></p>
</td>
</tr>
<tr valign="top">
<td width="218" bgcolor="#FFF3CE" >
<p>
<font size="2">Elwood G. Norris</font></p>
</td>
<td width="60" align="center" bgcolor="#FFF3CE" >
<p>
<font size="2">65</font></p>
</td>
<td width="32" bgcolor="#FFF3CE" >
&nbsp;</td>
<td width="441" bgcolor="#FFF3CE" >
<p>
<font size="2">Chairman of the Board</font></p>
</td>
<td width="156" align="center" bgcolor="#FFF3CE" >
<font size="2">&nbsp;1980 </font>	</td>
</tr>
<tr valign="top">
<td width="218" colspan="1" rowspan="1" >
<p>
<font size="2">Kalani Jones</font></p>
</td>
<td width="60" align="center" >
<p>
<font size="2">41</font></p>
</td>
<td width="32" rowspan="1" >
&nbsp;</td>
<td width="441" colspan="1" rowspan="1" >
<p>
<font size="2">President and Chief Operating Officer</font></p>
</td>
<td width="156" align="center" >
<font size="2">&nbsp;N/A </font>	</td>
</tr>
<tr valign="top">
<td width="218" bgcolor="#FFF3CE" >
<p>
<font size="2">Richard M. Wagner</font></p>
</td>
<td width="60" align="center" bgcolor="#FFF3CE" >
<p>
<font size="2">58</font></p>
</td>
<td width="32" bgcolor="#FFF3CE" >
&nbsp;</td>
<td width="441" bgcolor="#FFF3CE" >
<p>
<font size="2">Director</font></p>
</td>
<td width="156" align="center" bgcolor="#FFF3CE" >
<font size="2">&nbsp;1986 </font>	</td>
</tr>
<tr valign="top">
<td width="218" colspan="1" rowspan="1" >
<p>
<font size="2">David J. Carter</font></p>
</td>
<td width="60" align="center" >
<p>
<font size="2">56</font></p>
</td>
<td width="32" rowspan="1" >
&nbsp;</td>
<td width="441" colspan="1" rowspan="1" >
<p>
<font size="2">Director</font></p>
</td>
<td width="156" align="center" >
<font size="2">&nbsp;1998 </font>	</td>
</tr>
<tr valign="top">
<td width="218" bgcolor="#FFF3CE" >
<p>
<font size="2">Daniel Hunter</font></p>
</td>
<td width="60" align="center" bgcolor="#FFF3CE" >
<p>
<font size="2">53</font></p>
</td>
<td width="32" bgcolor="#FFF3CE" >
&nbsp;</td>
<td width="441" bgcolor="#FFF3CE" >
<p>
<font size="2">Director</font></p>
</td>
<td width="156" align="center" bgcolor="#FFF3CE" >
<font size="2">&nbsp;2001 </font>	</td>
</tr>
</table></div>
<p>
<i>
<b><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Elwood
G. Norris, </font></b></i><font size="2">age 65, has been a Director of our company since August 1980.
Mr.&nbsp;Norris served as Chief Executive Officer from October 2000 until
February 2003. He currently serves as Chairman of the Board, an executive
position. He served as President from August 1980 to February 1994.
Mr.&nbsp;Norris managed our research and development activities as Chief
Technology Officer through December 2000. From 1988 to November 1999 he was a
director and Chairman of e.Digital Corporation, a public company engaged in
electronic product development, distribution and sales. During that period he
also held various other executive officer positions at e.Digital. From August
1989 to October 1999 he served as director and held various executive officer
positions with Patriot Scientific Corporation, a public company engaged in the
development of microprocessor technology. He is an inventor with over 44 U.S.
patents, primarily in the fields of electrical and acoustical engineering. He is
the inventor of our HyperSonic Sound and other technologies.</font><p>
<i>
<b><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kalani
Jones, </font></b></i><font size="2">age 41, was appointed President in April 2004, and continues to serve
also as Chief Operating Officer, a position he has held since September 2003.
He joined our company as Vice President of Operations earlier in September 2003.
From October 1999 to November 2002 he was Vice President Engineering and Product
Operations for Tachyon Inc., a San Diego provider of satellite networking
solutions. From 1997 to 1999 he was Senior Director for Program Management at
IOMEGA and previously held engineering management positions at General
Instrument and TRW. From November 2002 until being recruited by us,
Mr.&nbsp;Jones was a self-employed entrepreneur developing technology based
remote monitoring solutions. Mr.&nbsp;Jones obtained a MSEE degree in Digital
Communications and Digital Signal Processing from USC in 1988 and a BSEE in
Electrical and Computer Engineering from California State Polytechnic University
in 1984.</font><p>
<i>
<b><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Richard
M. Wagner </font></b></i><font size="2">has served as a director since 1986 and served as Secretary from
February&nbsp;1994 to March&nbsp;1999. Since 1986, Mr.&nbsp;Wagner has been
President and CEO of Eidon Inc., a San Diego based company involved in the
manufacturing and distribution of liquid mineral supplements. Eidon Inc. is the
parent company of The Mortgage Company, a residential and commercial mortgage
brokerage firm. Mr.&nbsp;Wagner obtained a B.S. in Business in 1968 and an M.S.
in Finance in 1976 from the San Diego State University.</font><p>
<i>
<b><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;David J. Carter </font></b></i><font size="2">was
appointed as a director in September&nbsp;1998. From January&nbsp;1999 to January&nbsp;2000, he
was Vice President of Copyright Clearance Center, a copyright licensing service.
From 1983 until April&nbsp;1998, he was employed by AT&amp;T, with his last position as
General Manager and Product Development Vice President. He previously served in
other positions at AT&amp;T including Business Development Vice President and
Consumer Products Marketing Vice President. Prior to his employment with AT&amp;T,
he served as a Marketing Research Consultant and Managing Consultant - Marketing
and Business Strategy for General Electric Company. His career has included
technical positions at Temple Barker &amp; Sloane, Inc., Decision Research Corp. and
Johnson &amp; Johnson. He obtained a B.A. in Mathematics in 1970 and a M.S. in
Mathematical Statistics in 1973 from the University of Massachusetts.</font><p>
<i>
<b><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Daniel
Hunter </font></b></i><font size="2">was appointed as a director in May&nbsp;2001. Mr.&nbsp;Hunter has been a
licensed certified public accountant for over 25 years. He obtained his
accounting degree from the University of Utah in 1975.  Mr.&nbsp;Hunter has
operated his own law offices specializing in business and tax law for over 20
years. He obtained his Juris Doctor degree from the University of Seattle in
1978.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5">
  <font size="2">-4-</font><hr size="3" color="#999999" STYLE="page-break-after: always"> </div>
<font size="2">&nbsp;</font><p align="center"><b><font size="2">BOARD AND COMMITTEE
MATTERS AND CORPORATE GOVERNANCE MATTERS </font></b></p>
<p>
<b><font size="2">Board of Directors</font></b><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
Board of Directors currently consists of four directors:  Elwood G. Norris
(Chairman), Richard M. Wagner, David J. Carter and Daniel Hunter.  During the
fiscal year ended September 30, 2003 our Board of Directors held four meetings
and acted by unanimous written consent seven times. All directors attended at
least 75% of the aggregate of the total number of the meetings of the Board of
Directors and the total number of meetings held by all committees of the Board
of Directors on which he served.</font><p>
<b><font size="2">Independence of the Board of Directors</font></b><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
required under the Nasdaq Stock Market listing standards, a majority of the
members of a listed company's board of directors must qualify as "independent,"
as affirmatively determined by the board of directors. </font> <p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After
review of all relevant transactions or relationships between each director, or
any of his family members, and us, our senior management and our independent
auditors, our Board of Directors has affirmatively determined that Messrs.
Wagner, Carter and Hunter are independent directors within the meaning of the
applicable Nasdaq listing standards.</font><p>
<b><font size="2">Executive Sessions</font></b><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
required under recent Nasdaq listing standards, our independent directors will
meet at least twice per year in regularly scheduled executive sessions at which
only independent directors are present.</font><p>
<b><font size="2">Stockholder Communications with the Board of Directors</font></b><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Historically,
we have not adopted a formal process for stockholder communications with our
Board of Directors.  Nevertheless, we have made reasonable efforts to ensure
that the views of stockholders are heard by the Board or individual directors,
as applicable, and that appropriate responses are provided to stockholders in a
timely manner.  We believe our responsiveness to stockholder communications to
the Board has been excellent.  During the upcoming year the Nominating and
Governance Committee of our Board of Directors will give full consideration to
the adoption of a formal process for stockholder communications with the Board
and, if adopted, promptly post it on our website.</font><p>
<b><font size="2">Information Regarding the Board of Directors Committees</font></b><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
the fiscal year ended September 30, 2003, the Board had two standing committees:
the Audit Committee and the Compensation Committee.  The current charters for
the Audit Committee and the Compensation Committee are included as Annexes 1 and
2.  In April 2004, our Board also created a Nominating and Governance Committee
and the charter for that committee is attached as Annex 3.  The charters have
been adopted and in some cases amended and restated to, among other things,
reflect changes to the Nasdaq listing standards and SEC rules adopted to
implement provisions of the Sarbanes-Oxley Act of 2002. </font> </p align="center">
<div align="center" color="#000080" style="position:relative; left: -5">
  <font size="2">-5-</font><hr size="3" color="#999999" STYLE="page-break-after: always">
  <font size="2">&nbsp; </font> </div>
<p>
<i><font size="2">Audit Committee</font></i><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
Board of Directors has a separately designated standing Audit Committee
established in accordance with Section&nbsp;3(a)(58)(A) of the Securities
Exchange Act of 1934.  The Audit Committee oversees our corporate accounting and
financial reporting processes. Among other functions, the Audit Committee
evaluates the performance of and assesses the qualifications of the independent
auditors; engages the independent auditors; determines whether to retain or
terminate the existing independent auditors or to appoint and engage new
independent auditors; confers with senior management and the independent
auditors regarding the adequacy and effectiveness of financial reporting;
establishes procedures, as required under applicable law, for the receipt,
retention and treatment of complaints received by us regarding accounting,
internal accounting controls or auditing matters and the confidential and
anonymous submission by employees of concerns regarding questionable accounting
or auditing matters; reviews and approves the retention of the independent
auditors to perform any proposed permissible non-audit services; monitors the
rotation of partners of the independent auditors on our audit engagement team as
required by law; reviews annually the Audit Committee's written charter and the
committee's performance; reviews the financial statements to be included in our Annual Report on
Form&nbsp;10-K; and discusses with management and the independent auditors the
results of the annual audit and the results in our quarterly financial
statements. The Audit Committee has the authority to retain special legal,
accounting or other advisors or consultants as it deems necessary or appropriate
to carry out its duties.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Audit Committee is composed of Messrs. Wagner, Carter and Hunter, each of whom
served on the Audit Commitment for all of fiscal 2003.  The Audit Committee met
five times during fiscal 2003.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors annually reviews the Nasdaq listing standards definition of
independence for audit committee members and has determined that all members of
our Audit Committee are independent (as independence is currently defined in
Rule&nbsp;4350(d)(2)(A) of the Nasdaq listing standards). Our Board of Directors
has determined that Daniel Hunter qualifies as an "audit committee financial
expert," as defined in applicable SEC rules. In making such determinations, the
Board made a qualitative assessment of Mr. Hunter's level of knowledge and
experience based on a number of factors, including his formal education and
experience. See "Report of the Audit Committee."</font><p>
<i><font size="2">Compensation Committee</font></i><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Compensation Committee assists in the implementation of, and provides
recommendations with respect to, our general and specific compensation policies
and practices including those for our Chief Executive Officer.  The Compensation
Committee also administers our 2002 Stock Option Plan.  All members of the
Compensation Committee are independent (as independence is currently defined in
Rule&nbsp;4200(a)(15) of the Nasdaq listing standards).</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Compensation Committee is composed of Messrs. Wagner, Carter and Hunter, each of
whom served on the Compensation Committee during fiscal 2003.  The Compensation
Committee held seven meetings during fiscal 2003.  See "Report of the
Compensation Committee."</font><p>
<i><font size="2">Nominating and Governance Committee</font></i><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
Board of Directors established a Nominating and Governance Committee in April
2004.  The Nominating and Governance Committee is responsible for identifying,
reviewing and evaluating candidates to serve on our Board of Directors,
reviewing and evaluating our incumbent directors and the performance of our
Board; recommending to our Board for selection candidates for election to our
Board of Directors; making recommendations to the Board regarding the membership
of the committees of our Board; assessing the performance of our Board,
including its committees; and developing a set of corporate governance
principles for our company.  All members of the Nominating and Governance
Committee are independent (as independence is currently defined in
Rule&nbsp;4200(a)(15) of the Nasdaq listing standards).</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Nominating and Governance Committee is currently composed of Messrs. Wagner,
Carter and Hunter.  The Nominating and Governance Committee was not established
during the fiscal year ended September 30, 2003 and accordingly held no meetings
during such year.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5">
  <font size="2">-6-</font><hr size="3" color="#999999" STYLE="page-break-after: always">
  <font size="2">&nbsp; </font> </div>
<p>
<b><font size="2">Consideration of Director Nominees</font></b><p>
<i><font size="2">Director Qualifications</font></i><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Nominating and Governance Committee believes that candidates for director should
have certain minimum qualifications, including having the knowledge,
capabilities, experience and contacts that complement those currently existing
within our company; ability and qualifications to provide our management with an
expanded opportunity to explore ideas, concepts and creative approaches to
existing and future issues, and to guide management through the challenges and
complexities of building a quality company; ability to meet contemporary public
company board standards with respect to general governance; stewardship, depth
of review, independence, financial certification, personal integrity and
responsibility to stockholders; genuine desire and availability to participate
actively in the development of our future; and  an orientation toward maximizing
stockholder value in realistic time frames.  The Committee also intends to
consider for new Board members such factors as ability to contribute
strategically through relevant industry background and experience, on either the
vendor or the end user side;  strong current industry contacts; ability and
willingness to introduce and open doors to executives of potential customers and
partners; current employment as the CEO of an acoustic products, media,
advertising, military or government supply company larger than our company;
independence from our company and current board members; and a recognizable name
that would add credibility and value to our company and its stockholders.  The
Committee may modify these qualifications from time to time.</font><p>
<i><font size="2">Evaluating Nominees for Director</font></i><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Nominating and Governance Committee reviews candidates for director nominees in
the context of the current composition of our Board, our operating requirements
and the long-term interests of stockholders. In conducting this assessment, the
Committee currently considers, among other factors, diversity, age, skills, and
such other factors as it deems appropriate given the current needs of the Board
and our company, to maintain a balance of knowledge, experience and capability.
In the case of incumbent directors whose terms of office are set to expire, the
Nominating and Governance Committee reviews such directors' overall service to
our company during their term, including the number of meetings attended, level
of participation, quality of performance, and any other relationships and
transactions that might impair such directors' independence. In the case of new
director candidates, the Committee also determines whether the nominee must be
independent, which determination is based upon applicable Nasdaq listing
standards, applicable SEC rules and regulations and the advice of counsel, if
necessary. The Committee then uses its network of contacts to compile a list of
potential candidates, but may also engage, if it deems appropriate, a
professional search firm. The Committee conducts any appropriate and necessary
inquiries into the backgrounds and qualifications of possible candidates after
considering the function and needs of our Board of Directors. The Committee
meets to discuss and consider such candidates' qualifications and then selects a
nominee for recommendation to our Board of Directors by majority vote. To date,
neither the Nominating and Governance Committee nor any predecessor to the
Committee has paid a fee to any third party to assist in the process of
identifying or evaluating director candidates. To date, neither the Nominating
and Governance Committee nor any predecessor to the Committee has rejected a
timely director nominee from a stockholder or stockholders holding more than 5%
of our voting stock.</font><p>
<i><font size="2">Stockholder Nominations</font></i><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
April 2004, the Board created the Nominating and Governance Committee and
provided in its charter that the Committee will establish and oversee a policy
for considering stockholder nominees for directors, and will develop the
procedures that must be followed by stockholders in submitting recommendations.
The Committee's Charter requires it to apply the criteria and principles for
director selection to be set forth in Guidelines to be developed by the
Committee.  The Committee expects to apply the same guidelines to stockholder
nominees as applied to nominees from other sources. Any stockholder who wishes
to recommend for the Nominating and Governance Committee's consideration a
prospective nominee to serve on the Board of Directors may do so by giving the
candidate's name and qualifications in writing to our Chairman of the Board at
the following address: 13114 Evening Creek Drive, South San Diego, California
92128.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5">
  <font size="2">-7-</font><hr size="3" color="#999999" STYLE="page-break-after: always">
  <font size="2">&nbsp; </font> </div>
<p align="center">
<b><font size="2">PROPOSAL TWO</font></b><font size="2"><br></font><b>
<font size="2">RATIFICATION OF SELECTION OF INDEPENDENT
AUDITORS</font></b><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Audit Committee has selected BDO Seidman, LLP as our independent auditors for
the fiscal year ending September&nbsp;30, 2004 and has further directed that
management submit the selection of independent auditors for ratification by the
stockholders at the Annual Meeting.  BDO Seidman, LLP has audited our financial
statements since 1995.  A representative of BDO Seidman, LLP will be present at
the Annual Meeting.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockholder
ratification of the selection of BDO Seidman, LLP is not required by our bylaws
or otherwise. However, we are submitting the selection of BDO Seidman, LLP to
the stockholders for ratification as a matter of good corporate practice. If the
stockholders fail to ratify the selection, the Audit Committee will consider
whether or not to retain that firm.  Even if the selection is ratified, the
Audit Committee in its discretion may direct the appointment of different
independent auditors at any time during the year if it determines that such a
change would be in the best interest of our company and our stockholders.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
affirmative vote of the holders of a majority of the shares present in person or
represented by proxy and entitled to vote at the Annual Meeting will be required
to ratify the selection of BDO Seidman, LLP.  Abstentions will be counted toward
the tabulation of votes cast on proposals presented to the stockholders for the
purpose of determining a quorum and will have the same effect as negative votes.
Broker non-votes are counted towards a quorum, but are not counted for any
purpose in determining whether this matter has been approved.</font><p>
<b><font size="2">Principal Accountant Audit Fees and Services Fees</font></b><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table describes fees for professional audit services rendered by BDO
Seidman, LLP, our principal accountant, for the audit of our annual financial
statements for the years ended September 30, 2003 and September 30, 2002 and
fees billed for other services rendered by BDO Seidman, LLP during those
periods. These amounts include fees paid to BDO Seidman, LLP and Anton Collins
Mitchell LLP, members of the BDO alliance network of firms.</font></p>
<div style="position:relative; left: 10; width:591; height:15">
  <table border=0 cellpadding=0 cellspacing =0 style="border-collapse: collapse" bordercolor="#111111" >
<tr valign="top">
<td width="297.333259" bgcolor="#FFF3CE" style="border-bottom-style: solid; border-bottom-width: 1" >
<p>
<font size="2">Type of Fee</font></p>
</td>
<td width="130.666634" bgcolor="#FFF3CE" style="border-bottom-style: solid; border-bottom-width: 1" >
<p align="right"><font size="2">&nbsp;2003 </font>	</td>
<td width="81.333313" bgcolor="#FFF3CE" style="border-bottom-style: solid; border-bottom-width: 1" >
<p align="right"><font size="2">&nbsp;2002 </font>	</td>
</tr>
</table></div>
<div style="position:relative; left: 10">
  <table border=0 cellpadding=0 cellspacing =0 height="94" >
<tr valign="top">
<td width="297.333259" colspan="1" rowspan="1" height="15" >
<p>
<font size="2">Audit Fees (1)</font></p>
</td>
<td width="130.666634" colspan="1" rowspan="1" height="15" >
<p align="right">
<font size="2">$93,013</font></p align="right">
</td>
<td width="82.666646" colspan="1" rowspan="1" height="15" >
<p align="right">
<font size="2">$55,962</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="297.333259" height="15" bgcolor="#FFF3CE" >
<p>
<font size="2">Audit Related Fees (2)</font></p>
</td>
<td width="130.666634" height="15" bgcolor="#FFF3CE" >
<p align="right">
<font size="2">29,700</font></p align="right">
</td>
<td width="82.666646" height="15" bgcolor="#FFF3CE" >
<p align="right">
<font size="2">27,911</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="297.333259" colspan="1" rowspan="1" height="15" >
<p>
<font size="2">Tax Fees (3)</font></p>
</td>
<td width="130.666634" colspan="1" rowspan="1" height="15" >
<p align="right">
<font size="2">&#8211;</font></p align="right">
</td>
<td width="82.666646" colspan="1" rowspan="1" height="15" >
<p align="right">
<font size="2">5,000</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="297.333259" height="15" bgcolor="#FFF3CE" >
<p>
<font size="2">All Other Fees (4)</font></p>
</td>
<td width="130.666634" height="15" bgcolor="#FFF3CE" >
<p align="right">
<font size="2">&#8211;</font></p align="right">
</td>
<td width="82.666646" height="15" bgcolor="#FFF3CE" >
<p align="right">
<font size="2">&#8211;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="297.333259" colspan="1" rowspan="1" height="15" >
<p>
<font size="2">Total</font></p>
</td>
<td width="130.666634" colspan="1" rowspan="1" height="15" >
<p align="right">
<font size="2">$122,713</font></p align="right">
</td>
<td width="82.666646" colspan="1" rowspan="1" height="15" >
<p align="right">
<font size="2">$88,873</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="297.333259" colspan="1" rowspan="1" height="19" >
&nbsp;</td>
<td width="130.666634" colspan="1" rowspan="1" height="19" >
&nbsp;</td>
<td width="82.666646" colspan="1" rowspan="1" height="19" >
&nbsp;</td>
</tr>
</table></div>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="33.333325" colspan="1" rowspan="1" >
<p>
<font size="2">(1)</font></p>
</td>
<td width="589.333186" colspan="1" rowspan="1" >
<p>
<font size="2">Audit Fees include the aggregate fees paid by us during the fiscal year
indicated for professional services rendered by BDO Seidman, LLP for the audit
of our annual financial statements and review of financial statements included
in our Forms 10-Q.</font></p>
</td>
</tr>
<tr valign="top">
<td width="33.333325" colspan="1" rowspan="1" >
<p>
<font size="2">(2)</font></p>
</td>
<td width="589.333186" colspan="1" rowspan="1" >
<p>
<font size="2">Audit Related Fees include the aggregate fees paid by us during the fiscal year
indicated for assurance and related services by BDO Seidman, LLP that are
reasonably related to the performance of the audit or review of our financial
statements and not included in Audit Fees. Also included in Audit Related Fees
are fees for accounting advice.</font></p>
</td>
</tr>
<tr valign="top">
<td width="33.333325" colspan="1" rowspan="1" >
<p>
<font size="2">(3)</font></p>
</td>
<td width="589.333186" colspan="1" rowspan="1" >
<p>
<font size="2">Tax Fees include the aggregate fees paid by us during the fiscal year indicated
for professional services rendered by BDO Seidman, LLP for tax compliance, tax
advice and tax planning.</font></p>
</td>
</tr>
<tr valign="top">
<td width="33.333325" colspan="1" rowspan="1" >
<p>
<font size="2">(4)</font></p>
</td>
<td width="589.333186" colspan="1" rowspan="1" >
<p>
<font size="2">All Other Fees include the aggregate fees paid by us during the fiscal year
indicated for products and services provided by BDO Seidman, LLP, other than the
services reported above.</font></p>
</td>
</tr>
</table></div>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Approximately
59% of the total hours to complete the audit of our financial statements for the
year ended September 30, 2002 were incurred by Anton Collins Mitchell LLP,
members of the BDO alliance network of firms. Such members are not full time,
permanent employees of BDO Seidman, LLP.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5">
  <font size="2">-8-</font><hr size="3" color="#999999" STYLE="page-break-after: always">
  <font size="2">&nbsp; </font> </div><p>
<b><font size="2">Audit Committee Pre-Approval Policies and Procedures</font></b><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Audit Committee on an annual basis reviews audit and non-audit services
performed by the independent auditor. All audit and non-audit services are
pre-approved by the Audit Committee, which considers, among other things, the
possible effect of the performance of such services on the auditors'
independence. The Audit Committee has considered the role of BDO Seidman, LLP in
providing services to us for the fiscal year ended September 30, 2003 and has
concluded that such services are compatible with their independence as our
company's auditors. The Audit Committee has established its pre-approval
policies and procedures, pursuant to which the Audit Committee approved the
foregoing audit services provided by BDO Seidman, LLP in fiscal
2003.</font><p align="center">
<b><font size="2">THE BOARD OF DIRECTORS RECOMMENDS</font></b><font size="2"><br>
</font><b><font size="2">A VOTE IN FAVOR OF PROPOSAL
2</font></b></p align="center">
<p align="center"><b><font size="2">&nbsp;ADDITIONAL INFORMATION </font></b></p>
<p>
<b><font size="2">MANAGEMENT</font></b><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set
forth below is information regarding our executive officers.  All executive
officers serve at the pleasure of the Board of Directors.</font></p>
<div style="position:relative; left: -0">
  <table border=0 cellpadding=0 cellspacing =0 style="border-collapse: collapse" bordercolor="#111111" width="661" >
<tr valign="top">
<td width="191" colspan="1" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" >
<p>
<b><font size="2">Name</font></b></p>
</td>
<td width="120" colspan="1" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" >
<p>
<b><font size="2">Age</font></b></p>
</td>
<td width="350" colspan="1" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" >
<p>
<b><font size="2">Position</font></b></p>
</td>
</tr>
<tr valign="top">
<td width="191" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE" >
<p>
<font size="2">Elwood G. Norris*</font></p>
</td>
<td width="120" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE" >
<p>
<font size="2">&nbsp;65</font></p>
</td>
<td width="350" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE" >
<p>
<font size="2">Chairman of the Board of Directors</font></p>
</td>
</tr>
<tr valign="top">
<td width="191" colspan="1" rowspan="1" >
<p>
<font size="2">Kalani Jones*</font></p>
</td>
<td width="120" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;41</font></p>
</td>
<td width="350" colspan="1" rowspan="1" >
<p>
<font size="2">President and Chief Operating Officer</font></p>
</td>
</tr>
<tr valign="top">
<td width="191" bgcolor="#FFF3CE" >
<p>
<font size="2">Carl Gruenler</font></p>
</td>
<td width="120" bgcolor="#FFF3CE" >
<p>
<font size="2">&nbsp;50</font></p>
</td>
<td width="350" bgcolor="#FFF3CE" >
<p>
<font size="2">Vice President, Military Operations and Interim Chief Financial Officer</font></p>
</td>
</tr>
<tr valign="top">
<td width="191" colspan="1" rowspan="1" >
<p>
<font size="2">Bruce Ehlers</font></p>
</td>
<td width="120" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;45</font></p>
</td>
<td width="350" colspan="1" rowspan="1" >
<p>
<font size="2">Vice President, Engineering</font></p>
</td>
</tr>
<tr valign="top">
<td width="191" bgcolor="#FFF3CE" >
<p>
<font size="2">Joseph A. Zerucha</font></p>
</td>
<td width="120" bgcolor="#FFF3CE" >
<p>
<font size="2">&nbsp;40</font></p>
</td>
<td width="350" bgcolor="#FFF3CE" >
<p>
<font size="2">Vice President, Sales and Marketing</font></p>
</td>
</tr>
<tr valign="top">
<td width="191" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="120" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="350" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
<font size="2">* Biographical information about Elwood G. Norris and Kalani Jones is set forth
under Proposal 1 above.</font><p>
<i>
<b><font size="2">Carl Gruenler, </font></b></i><font size="2">age 50, was appointed Vice President of Military Operations
in June 2003. He manages the Government Group. He assumed additional
responsibilities as Interim Chief Financial Officer in November 2003. From May
1998 to June 2003 he served as Smart Wing Program Manager for the Combat Patrol
and Reconnaissance Wing as a Captain in the United States Navy. He was
responsible for identifying and developing new integrated systems for physical
security/access control, waterside force protection and mobile computing.
Mr.&nbsp;Gruenler's prior business experience includes serving as president of
Thomas D. Mangelsen, Inc., a national retail, manufacturing and distribution
company; chief financial officer of Automated Monitoring and Control
International, Inc., a railroad systems technology company; and a project
manager/financial analyst at Union Pacific Railroad. He holds an M.B.A. from the
University of Nebraska-Lincoln (1981) and a BS in Business Administration from
Oral Roberts University in (1975).</font><p>
<i>
<b><font size="2">Bruce Ehlers, </font></b></i><font size="2">age 45, was appointed Vice President of Engineering in
October 2003. From May 1999 to March 2003 Mr.&nbsp;Ehlers was assistant vice
president at Copper Mountain Networks where he was responsible for Copper
Mountain's hardware and embedded software development, engineering services and
engineering program management. From January 1997 to May 1999 Mr.&nbsp;Ehlers
was senior director of Research and Development at Iomega's Mobile Storage
Division. While at Iomega, he lead research and development for Iomega's new
generation of tape and miniature, removable disk drives. He has held previous
engineering management positions at General Instrument, Cipher Data Products and
TRW. He holds a BSEE (1980) and MSEE (1981) from Purdue University.</font><p>
<i>
<b><font size="2">Joseph A. Zerucha, </font></b></i><font size="2">age 40, was appointed as Vice President of Sales and
Marketing in December 2003. From December 2002 to December 2003,
Mr.&nbsp;Zerucha was President of Liberties Consulting, where he established and
trained sales teams and implemented innovative marketing and management
strategies for a variety of clients. From April 2001 to November 2002, he was
Chief Operating Officer and Treasurer of Tachyon, Inc., a provider of broadband
connectivity and Internet services to large enterprises and governmental
entities. He served as President for a division of Clear Channel Communications
from May 1999 to April 2001 where he was<b> </b>responsible for build-out of a
new industry-leading audio distribution
platform. From 1995 to May 1999 he was Director of Worldwide Sales and Channel
Development for ViaSat, Inc., a maker of satellite communications equipment and
software.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5">
  <font size="2">-9-</font><hr size="3" color="#999999" STYLE="page-break-after: always">
  <font size="2">&nbsp; </font> </div>
<p align="center"><b><font size="2">&nbsp;SECURITY OWNERSHIP OF<br>
CERTAIN BENEFICIAL OWNERS AND MANAGEMENT </font></b></p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table sets forth certain information regarding the ownership of our
stock as of April 1, 2004 by:  (i)&nbsp;each director and nominee for director;
(ii)&nbsp;each of the executive officers named in the Summary Compensation
Table; (iii)&nbsp;all executive officers and directors as a group; and
(iv)&nbsp;all those known by us to be beneficial owners of more than five
percent of any class of our voting stock. </font> </p align="center">
<div style="position:relative; left: 0">
  <table border=0 cellpadding=0 cellspacing =0 style="border-collapse: collapse" bordercolor="#111111" width="667" >
<tr valign="top">
<td width="158" colspan="3" valign="bottom" align="center" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE" >
<b><font size="2">&nbsp;Title of Class </font></b>	</td>
<td width="11" valign="bottom" align="center" bgcolor="#FFF3CE" >
&nbsp;</td>
<td width="210" valign="bottom" align="center" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE" >
<b><font size="2">&nbsp;Name and Address of<br>
Beneficial Owner </font></b>	</td>
<td width="18" valign="bottom" align="center" bgcolor="#FFF3CE" >
&nbsp;</td>
<td width="163" colspan="2" valign="bottom" align="center" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE" >
<b><font size="2">Amount &amp; Nature of<br>
Beneficial Ownership (1) </font></b>	</td>
<td width="11" valign="bottom" align="center" bgcolor="#FFF3CE" >
&nbsp;</td>
<td width="96" valign="bottom" align="center" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE" >
<b><font size="2">&nbsp;Percent<br>
of&nbsp;Class&nbsp;(1) </font></b>	</td>
</tr>
<tr valign="top">
<td width="158" colspan="3" rowspan="1" style="border-top-style: solid; border-top-width: 1" >
<p>
<font size="2">Common Stock</font></p>
</td>
<td width="11" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="210" colspan="1" rowspan="1" style="border-top-style: solid; border-top-width: 1" >
<p>
<font size="2">Elwood G. Norris<br>13114 Evening Creek Drive South<br>San Diego, California
92128</font></p>
</td>
<td width="18" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="163" colspan="2" style="border-top-style: solid; border-top-width: 1" align="center" >
<p align="center">
<font size="2">3,884,236 (2)</font></p align="center">
</td>
<td width="11" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="96" colspan="1" rowspan="1" style="border-top-style: solid; border-top-width: 1" >
<p align="center">
<font size="2">19.5%</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="158" colspan="3" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="11" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="210" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="18" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="163" colspan="2" BGCOLOR=#FFF3CE align="center">
&nbsp;</td>
<td width="11" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="96" BGCOLOR=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="158" colspan="3" rowspan="1" >
<p>
<font size="2">Common Stock</font></p>
</td>
<td width="11" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="210" colspan="1" rowspan="1" >
<p>
<font size="2">James M. Irish<br>14637 Via Bettma<br>San Diego, California 92127</font></p>
</td>
<td width="18" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="163" colspan="2" align="center" >
<font size="2">&nbsp;-- (3) </font>	</td>
<td width="11" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="96" colspan="1" rowspan="1" >
<p align="center">
<font size="2">--&nbsp;%</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="158" colspan="3" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="11" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="210" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="18" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="163" colspan="2" BGCOLOR=#FFF3CE align="center">
&nbsp;</td>
<td width="11" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="96" BGCOLOR=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="158" colspan="3" rowspan="1" >
<p>
<font size="2">Common Stock</font></p>
</td>
<td width="11" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="210" colspan="1" rowspan="1" >
<p>
<font size="2">Terry Conrad<br>6790 N.E. Woodbay Lane<br>Poulsbo, Washington 98370</font></p>
</td>
<td width="18" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="163" colspan="2" align="center" >
<p align="center">
<font size="2">72,000 (4)</font></p align="center">
</td>
<td width="11" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="96" colspan="1" rowspan="1" >
<p align="center">
<font size="2">*&nbsp;%</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="158" colspan="3" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="11" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="210" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="18" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="163" colspan="2" BGCOLOR=#FFF3CE align="center">
&nbsp;</td>
<td width="11" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="96" BGCOLOR=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="158" colspan="3" rowspan="1" >
<p>
<font size="2">Common Stock</font></p>
</td>
<td width="11" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="210" colspan="1" rowspan="1" >
<p>
<font size="2">James Croft III<br>13114 Evening Creek Drive South<br>San Diego, California
92128</font></p>
</td>
<td width="18" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="163" colspan="2" align="center" >
<p align="center">
<font size="2">151,100 (5)</font></p align="center">
</td>
<td width="11" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="96" colspan="1" rowspan="1" >
<p align="center">
<font size="2">*&nbsp;%</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="158" colspan="3" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="11" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="210" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="18" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="39" BGCOLOR=#FFF3CE align="center">
&nbsp;</td>
<td width="124" BGCOLOR=#FFF3CE align="center">
&nbsp;</td>
<td width="11" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="96" BGCOLOR=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="158" colspan="3" rowspan="1" >
<p>
<font size="2">Common Stock</font></p>
</td>
<td width="11" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="210" colspan="1" rowspan="1" >
<p>
<font size="2">Richard M. Wagner<br>13114 Evening Creek Drive South<br>San Diego, California
92128</font></p>
</td>
<td width="18" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="163" colspan="2" align="center" >
<p align="center">
<font size="2">105,000 (6)</font></p align="center">
</td>
<td width="11" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="96" colspan="1" rowspan="1" >
<p align="center">
<font size="2">*&nbsp;%</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="158" colspan="3" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="11" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="210" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="18" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="163" colspan="2" BGCOLOR=#FFF3CE align="center">
&nbsp;</td>
<td width="11" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="96" BGCOLOR=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="158" colspan="3" rowspan="1" >
<p>
<font size="2">Common Stock</font></p>
</td>
<td width="11" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="210" colspan="1" rowspan="1" >
<p>
<font size="2">David J. Carter<br>13114 Evening Creek Drive South<br>San Diego, California
92128</font></p>
</td>
<td width="18" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="163" colspan="2" align="center" >
<p align="center">
<font size="2">78,750 (7)</font></p align="center">
</td>
<td width="11" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="96" colspan="1" rowspan="1" >
<p align="center">
<font size="2">*&nbsp;%</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="158" colspan="3" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="11" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="210" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="18" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="163" colspan="2" BGCOLOR=#FFF3CE align="center">
&nbsp;</td>
<td width="11" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="96" BGCOLOR=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="158" colspan="3" rowspan="1" >
<p>
<font size="2">Common Stock</font></p>
</td>
<td width="11" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="210" colspan="1" rowspan="1" >
<p>
<font size="2">Daniel Hunter<br>13114 Evening Creek Drive South<br>San Diego, California
92128</font></p>
</td>
<td width="18" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="163" colspan="2" align="center" >
<p align="center">
<font size="2">116,500 (8)</font></p align="center">
</td>
<td width="11" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="96" colspan="1" rowspan="1" >
<p align="center">
<font size="2">*&nbsp;%</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="158" colspan="3" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="11" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="210" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="18" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="163" colspan="2" BGCOLOR=#FFF3CE align="center">
&nbsp;</td>
<td width="11" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="96" BGCOLOR=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="379" colspan="5" >
<p>
<font size="2">All directors &amp; executive <br>
officers as a group (8&nbsp;persons)</font></p>
</td>
<td width="18" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="163" colspan="2" align="center" >
<p align="center">
<font size="2">4,251,986 (9)</font></p align="center">
</td>
<td width="11" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="96" colspan="1" rowspan="1" >
<p align="center">
<font size="2">21.1%</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="158" colspan="3" BGCOLOR=#FFF3CE style="border-bottom-style: solid; border-bottom-width: 1">
&nbsp;</td>
<td width="11" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="210" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="18" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="163" colspan="2" BGCOLOR=#FFF3CE align="center">
&nbsp;</td>
<td width="11" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="96" BGCOLOR=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="667" colspan="10" style="border-top-style: solid; border-top-width: 1" >
<p>
<font size="2">*&nbsp;&nbsp;&nbsp;&nbsp; Less than 1%. </font></p>
</td>
</tr>
<tr valign="top">
<td width="154" colspan="2" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="513" colspan="8" BGCOLOR=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="34" BGCOLOR=#ffffff>
<font size="2">(1)</font></td>
<td width="633" colspan="9" BGCOLOR=#ffffff>
<font size="2">Beneficial ownership is determined in accordance with the rules
of the SEC and generally includes voting or investment power with respect to
securities. Except as otherwise indicated below, this table is based on
information supplied by officers, directors and principal stockholders. The
inclusion in this table of such shares does not constitute an admission that the
named stockholder is a direct or indirect beneficial owner of, or receives the
economic benefit of, such shares. Percentage of class is based on 19,634,398
shares of common stock outstanding on April 1, 2004. Except as otherwise stated
below, each of the named persons has sole voting and investment power with
respect to the shares shown (subject to community property laws).</font></td>
</tr>
<tr valign="top">
<td width="34" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="120" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="513" colspan="8" BGCOLOR=#FFF3CE>
&nbsp;</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5">
  <font size="2">-10-</font><hr size="3" color="#999999" STYLE="page-break-after: always">
  <font size="2">&nbsp; </font> </div><p>
</p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="35.999991" colspan="1" rowspan="1" >
<p>
<font size="2">(2)</font></p>
</td>
<td width="626.666510" align="left" >
<p>
<font size="2">Includes 3,621,736 shares held by a family trust for which Mr. Norris serves as
trustee, 125,000 shares issuable upon exercise of a warrant held by such trust,
and 137,500 shares issuable upon the exercise of outstanding stock options
within 60 days of April 1, 2004.</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="35.999991" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="626.666510" BGCOLOR=#FFF3CE align="left">
&nbsp;</td>
</tr>
<tr valign="top">
<td width="35.999991" colspan="1" rowspan="1" >
<p>
<font size="2">(3)</font></p>
</td>
<td width="626.666510" align="left" >
<p>
<font size="2">Mr. Irish did not provide share ownership information.  To our knowledge, Mr.
Irish does not beneficially own any shares of our common
stock.</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="35.999991" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="626.666510" BGCOLOR=#FFF3CE align="left">
&nbsp;</td>
</tr>
<tr valign="top">
<td width="35.999991" colspan="1" rowspan="1" >
<p>
<font size="2">(4)</font></p>
</td>
<td width="626.666510" align="left" >
<p>
<font size="2">Consists of 72,000 shares issuable upon the exercise of outstanding stock
options within 60 days of April 1, 2004.</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="35.999991" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="626.666510" BGCOLOR=#FFF3CE align="left">
&nbsp;</td>
</tr>
<tr valign="top">
<td width="35.999991" colspan="1" rowspan="1" >
<p>
<font size="2">(5)</font></p>
</td>
<td width="626.666510" align="left" >
<p>
<font size="2">Includes 151,000 shares issuable upon the exercise of outstanding stock options
within 60 days of April 1, 2004.</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="35.999991" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="626.666510" BGCOLOR=#FFF3CE align="left">
&nbsp;</td>
</tr>
<tr valign="top">
<td width="35.999991" colspan="1" rowspan="1" >
<p>
<font size="2">(6)</font></p>
</td>
<td width="626.666510" align="left" >
<p>
<font size="2">Includes 60,000 shares issuable upon the exercise of outstanding stock options
within 60 days of April 1, 2004.</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="35.999991" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="626.666510" BGCOLOR=#FFF3CE align="left">
&nbsp;</td>
</tr>
<tr valign="top">
<td width="35.999991" colspan="1" rowspan="1" >
<p>
<font size="2">(7)</font></p>
</td>
<td width="626.666510" align="left" >
<p>
<font size="2">Includes 370,000 shares issuable upon the exercise of outstanding stock options
within 60 days of April 1, 2004.</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="35.999991" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="626.666510" BGCOLOR=#FFF3CE align="left">
&nbsp;</td>
</tr>
<tr valign="top">
<td width="35.999991" colspan="1" rowspan="1" >
<p>
<font size="2">(8)</font></p>
</td>
<td width="626.666510" align="left" >
<p>
<font size="2">Includes 50,000 shares issuable upon the exercise of outstanding stock options
within 60 days of April 1, 2004.</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="35.999991" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="626.666510" BGCOLOR=#FFF3CE align="left">
&nbsp;</td>
</tr>
<tr valign="top">
<td width="35.999991" colspan="1" rowspan="1" >
<p>
<font size="2">(9)</font></p>
</td>
<td width="626.666510" align="left" >
<p>
<font size="2">Includes 370,000 shares issuable upon the exercise of outstanding stock options
within 60 days of April 1, 2004 and 125,000 shares issuable upon exercise of a
warrant.</font></p align="center">
</td>
</tr>
</table></div>
<p>
<b><font size="2">Other Voting Stock</font></b><p>
<i><font size="2">Preferred Stock</font></i><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following security ownership information is set forth as of April 1, 2004, with
respect to certain persons or groups known by us to be beneficial owners of more
than 5% of any outstanding series of our Preferred Stock. </font> </p align="center">
<div style="position:relative; left: 0">
  <table border=0 cellpadding=0 cellspacing =0 style="border-collapse: collapse" bordercolor="#111111" >
<tr valign="top">
<td width="623.999844" colspan="7" rowspan="1" >
<p align="center">
<font size="2">&nbsp;<b><u>Series&nbsp;D Preferred Stock</u></b> </font>	</td>
</tr>
<tr valign="top">
<td width="139.999965" colspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" >
&nbsp;</td>
<td width="271.999932" colspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" >
&nbsp;</td>
<td width="82.666646" colspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="139.999965" rowspan="2" valign="bottom" align="center" style="border-bottom-style: solid; border-bottom-width: 1" >
<p>
<b><font size="2">Title of Class</font></b></p>
</td>
<td width="11.999997" rowspan="2" valign="bottom" align="center" >
&nbsp;</td>
<td width="271.999932" rowspan="2" valign="bottom" align="center" style="border-bottom-style: solid; border-bottom-width: 1" >
<p>
<b><font size="2">Name and address of Beneficial Owner</font></b></p>
</td>
<td width="11.999997" rowspan="2" valign="bottom" align="center" >
&nbsp;</td>
<td width="82.666646" rowspan="2" valign="bottom" align="center" style="border-bottom-style: solid; border-bottom-width: 1" >
<b>
<font size="2">&nbsp;Amount and<br>
Nature of<br>
Beneficial<br>
Ownership<br>
Series D (1)
</font>	</b>	</td>
<td width="21.333328" valign="bottom" align="center" >
&nbsp;</td>
<td width="79.999980" rowspan="2" valign="bottom" align="center" style="border-bottom-style: solid; border-bottom-width: 1" >
<b>
<font size="2">&nbsp;Percent of<br>
Class<br>
Series D (1) </font>	</b>	</td>
</tr>
<tr valign="top">
<td width="21.333328" valign="bottom" align="center" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="139.999965" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE" >
<p>
<font size="2">Series D Preferred Stock</font></p>
</td>
<td width="11.999997" bgcolor="#FFF3CE" >
&nbsp;</td>
<td width="271.999932" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE" >
<p>
<font size="2">Ehrens Family Trust<br>Gerald L &amp; Wilma S<br>8912 Canyon Springs Dr.<br>Las
Vegas, CA 89117</font></p>
</td>
<td width="11.999997" bgcolor="#FFF3CE" >
&nbsp;</td>
<td width="82.666646" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">5,000 (2)</font></p align="center">
</td>
<td width="21.333328" bgcolor="#FFF3CE" >
&nbsp;</td>
<td width="79.999980" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">10.0%</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="139.999965" colspan="1" rowspan="1" >
<p>
<font size="2">Series D Preferred Stock</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="271.999932" colspan="1" rowspan="1" >
<p>
<font size="2">Granite Capital LP<br>126 East 56th Street Flr 25<br>New York, NY 10022</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="82.666646" colspan="1" rowspan="1" >
<p align="center">
<font size="2">40,000 (3)</font></p align="center">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="center">
<font size="2">80.0%</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="139.999965" bgcolor="#FFF3CE" >
<p>
<font size="2">Series D Preferred Stock</font></p>
</td>
<td width="11.999997" bgcolor="#FFF3CE" >
&nbsp;</td>
<td width="271.999932" bgcolor="#FFF3CE" >
<p>
<font size="2">Granite Capital II LP<br>126 East 56th Street Flr 25<br>New York, NY 10022</font></p>
</td>
<td width="11.999997" bgcolor="#FFF3CE" >
&nbsp;</td>
<td width="82.666646" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">40,000 (3)</font></p align="center">
</td>
<td width="21.333328" bgcolor="#FFF3CE" >
&nbsp;</td>
<td width="79.999980" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">&nbsp;80.0% </font>	</td>
</tr>
</table></div>
<p>
<font size="2">See footnotes on following page.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5">
  <font size="2">-11-</font><hr size="3" color="#999999" STYLE="page-break-after: always">
  <font size="2">&nbsp; </font> </div><p>
</p align="center">
<div style="position:relative; left: 0">
  <table border="1" style="border-collapse: collapse; border-width: 0" bordercolor="#111111" cellpadding="0" cellspacing="0">
<tr valign="top">
<td width="623.999844" colspan="7" rowspan="1" bgcolor=#FFF3CE style="border-style: none; border-width: medium">
<p align="center">
<b><u><font size="2">Series&nbsp;E Preferred Stock</font></u></b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="139.999965" style="border-left: medium none #111111; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom-style: none; border-bottom-width: medium" valign="bottom" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>Title of Class</b></font></p>
</td>
<td width="11.999997" style="border-style: none; border-width: medium" valign="bottom" >
&nbsp;</td>
<td width="279.999930" style="border-style: none; border-width: medium" valign="bottom" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>Name and address of Beneficial Owner</b></font></p>
</td>
<td width="10.666664" style="border-style: none; border-width: medium" valign="bottom" >
&nbsp;</td>
<td width="75.999981" style="border-style: none; border-width: medium" valign="bottom" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>Amount and</b><br><b>Nature
of</b><br><b>Beneficial</b><br><b>Ownership</b><br><b>Series
E (4)</b></font></p>
</td>
<td width="23.999994" style="border-style: none; border-width: medium" valign="bottom" >
&nbsp;</td>
<td width="77.333314" style="border-left-style: none; border-left-width: medium; border-right: medium none #111111; border-top-style: none; border-top-width: medium; border-bottom-style: none; border-bottom-width: medium" valign="bottom" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>Percent
of</b><br><b>Class</b><br><b>Series
E (4)</b></font></p>
</td>
</tr>
<tr valign="top">
<td width="139.999965" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-left: medium none #111111; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom-style: none; border-bottom-width: medium">
<p>
<font size="2">Series E Preferred Stock</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-style: none; border-width: medium">
&nbsp;</td>
<td width="279.999930" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-style: none; border-width: medium">
<p>
<font size="2">Granite Capital LP<br>126 East 56th Street Flr 25<br>New York, NY 10022</font></p>
</td>
<td width="10.666664" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-style: none; border-width: medium">
&nbsp;</td>
<td width="75.999981" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-style: none; border-width: medium">
<p align="center">
<font size="2">25,000 (5)</font></p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-style: none; border-width: medium">
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-left-style: none; border-left-width: medium; border-right: medium none #111111; border-top-style: none; border-top-width: medium; border-bottom-style: none; border-bottom-width: medium">
<p align="center">
<font size="2">9.9%</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="139.999965" colspan="1" rowspan="1" style="border-left: medium none #111111; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom-style: none; border-bottom-width: medium" >
<p>
<font size="2">Series E Preferred Stock</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" style="border-style: none; border-width: medium" >
&nbsp;</td>
<td width="279.999930" colspan="1" rowspan="1" style="border-style: none; border-width: medium" >
<p>
<font size="2">Granite Capital II LP<br>126 East 56th Street Flr 25<br>New York, NY 10022</font></p>
</td>
<td width="10.666664" colspan="1" rowspan="1" style="border-style: none; border-width: medium" >
&nbsp;</td>
<td width="75.999981" colspan="1" rowspan="1" style="border-style: none; border-width: medium" >
<p align="center">
<font size="2">25,000 (5)</font></p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" style="border-style: none; border-width: medium" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" style="border-left-style: none; border-left-width: medium; border-right: medium none #111111; border-top-style: none; border-top-width: medium; border-bottom-style: none; border-bottom-width: medium" >
<p align="center">
<font size="2">9.9%</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="139.999965" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-left: medium none #111111; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom-style: none; border-bottom-width: medium">
<p>
<font size="2">Series E Preferred Stock</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-style: none; border-width: medium">
&nbsp;</td>
<td width="279.999930" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-style: none; border-width: medium">
<p>
<font size="2">Canusa Trading Ltd.<br>PO Box HM 279<br>Hamilton HMAX, Bermuda</font></p>
</td>
<td width="10.666664" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-style: none; border-width: medium">
&nbsp;</td>
<td width="75.999981" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-style: none; border-width: medium">
<p align="center">
<font size="2">50,000 (6)</font></p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-style: none; border-width: medium">
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-left-style: none; border-left-width: medium; border-right: medium none #111111; border-top-style: none; border-top-width: medium; border-bottom-style: none; border-bottom-width: medium">
<p align="center">
<font size="2">19.7%</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="139.999965" colspan="1" rowspan="1" style="border-left: medium none #111111; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom-style: none; border-bottom-width: medium" >
<p>
<font size="2">Series E Preferred Stock</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" style="border-style: none; border-width: medium" >
&nbsp;</td>
<td width="279.999930" colspan="1" rowspan="1" style="border-style: none; border-width: medium" >
<p>
<font size="2">K. Tucker Anderson<br>61 Above All Rd.<br>Warren, CT 06754-1710</font></p>
</td>
<td width="10.666664" colspan="1" rowspan="1" style="border-style: none; border-width: medium" >
&nbsp;</td>
<td width="75.999981" colspan="1" rowspan="1" style="border-style: none; border-width: medium" >
<p align="center">
<font size="2">25,000</font></p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" style="border-style: none; border-width: medium" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" style="border-left-style: none; border-left-width: medium; border-right: medium none #111111; border-top-style: none; border-top-width: medium; border-bottom-style: none; border-bottom-width: medium" >
<p align="center">
<font size="2">9.9%</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="139.999965" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-left: medium none #111111; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom-style: none; border-bottom-width: medium">
<p>
<font size="2">Series E Preferred Stock</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-style: none; border-width: medium">
&nbsp;</td>
<td width="279.999930" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-style: none; border-width: medium">
<p>
<font size="2">Leonard M. Teninbaum Keogh Account<br>1900 St. James Place Ste. 150<br>Houston,
TX 77056</font></p>
</td>
<td width="10.666664" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-style: none; border-width: medium">
&nbsp;</td>
<td width="75.999981" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-style: none; border-width: medium">
<p align="center">
<font size="2">42,500 (7)</font></p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-style: none; border-width: medium">
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-left-style: none; border-left-width: medium; border-right: medium none #111111; border-top-style: none; border-top-width: medium; border-bottom-style: none; border-bottom-width: medium">
<p align="center">
<font size="2">16.8%</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="139.999965" colspan="1" rowspan="1" style="border-left: medium none #111111; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1" >
<p>
<font size="2">Series E Preferred Stock<br>
<br>
<br>
&nbsp;</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" style="border-style: none; border-width: medium" >
&nbsp;</td>
<td width="279.999930" colspan="1" rowspan="1" style="border-style: none; border-width: medium" >
<p>
<font size="2">Vandoon Partners<br>7 Hanover Sq. 8<sup>th</sup> Floor<br>New York, NY 10004</font></p>
</td>
<td width="10.666664" colspan="1" rowspan="1" style="border-style: none; border-width: medium" >
&nbsp;</td>
<td width="75.999981" colspan="1" rowspan="1" style="border-style: none; border-width: medium" >
<p align="center">
<font size="2">20,000 (8)</font></p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" style="border-style: none; border-width: medium" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" style="border-left-style: none; border-left-width: medium; border-right: medium none #111111; border-top-style: none; border-top-width: medium; border-bottom-style: none; border-bottom-width: medium" >
<p align="center">
<font size="2">7.9%</font></p align="center">
</td>
</tr>
</table></div>
<p>
</p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
<p>
<font size="2">(1)</font></p>
</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="595.999851" colspan="1" rowspan="1" >
<p>
<font size="2">Represents number of shares of Series D Preferred Stock, held as of April 1,
2004. At such date an aggregate of 50,000 shares of Series D Preferred Stock
were issued and outstanding convertible into an aggregate of 123,962 shares of
common stock.</font></p>
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="595.999851" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
<p>
<font size="2">(2)</font></p>
</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="595.999851" colspan="1" rowspan="1" >
<p>
<font size="2">Gerald L. Ehrens and Wilma S. Ehrens are believed by us to have shared voting
and investment power with respect to the Series D Preferred Stock held.</font></p>
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="595.999851" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
<p>
<font size="2">(3)</font></p>
</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="595.999851" colspan="1" rowspan="1" >
<p>
<font size="2">Includes 35,263 shares of Series D Preferred Stock held by Granite Capital LP,
and 4,737 shares of Series D Preferred Stock held by Granite Capital II LP.
Granite Capital LLC is the general partner of each of Granite Capital LP and
Granite Capital II LP. Mr. Walter F. Harrison, III and Lewis M. Eisenberg are
co-managing members of Granite Capital LLC, and are believed by us to have
shared voting and investment power with respect to the Series D Preferred Stock
held. Granite Capital LP and Granite Capital II LP disclaim beneficial ownership
in these securities except to the extent of such person's pecuniary interest in
these securities and disclaim membership in a group with any other entity or
person within the meaning of Rule 13d-5(b)(1) under the Exchange Act.</font></p>
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="595.999851" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
<p>
<font size="2">(4)</font></p>
</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="595.999851" colspan="1" rowspan="1" >
<p>
<font size="2">Represents number of shares of Series E Preferred Stock, held as of April 1,
2004. At such date an aggregate of 253,250 shares of Series E Preferred Stock
were issued and outstanding convertible into an aggregate of 830,271 shares of
common stock. </font> </p>
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="595.999851" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
<p>
<font size="2">(5)</font></p>
</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="595.999851" colspan="1" rowspan="1" >
<p>
<font size="2">Includes 22,500 shares of Series E Preferred Stock held by Granite Capital LP,
and 2,500 shares of Series E Preferred Stock held by Granite Capital II LP.
Granite Capital LLC is the general partner of each of Granite Capital LP and
Granite Capital II LP. Mr. Walter F. Harrison, III and Lewis M. Eisenberg are
co-managing members of Granite Capital LLC, and are believed by us to have
shared voting and investment power with respect to the Series&nbsp;E Preferred
Stock held. Granite Capital LP and Granite Capital II LP disclaim beneficial
ownership in these securities except to the extent of such person's pecuniary
interest in these securities and disclaim membership in a group with any other
entity or person within the meaning of Rule 13d-5(b)(1) under the Exchange
Act.<br>
&nbsp;</font></p>
</td>
</tr>
</table></div>
<div align="center" color="#000080" style="position:relative; left: -5">
  <font size="2">-12-</font><hr size="3" color="#999999" STYLE="page-break-after: always">
  <font size="2">&nbsp; </font> </div><p>
</p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
<p>
<font size="2">(6)</font></p>
</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="595.999851" colspan="1" rowspan="1" >
<p>
<font size="2">Mr. W.A. Manuel is President of Canusa Trading Ltd., and is believed by us to
have sole voting and investment power with respect to the Series E Preferred
Stock held.</font></p>
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="595.999851" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
<p>
<font size="2">(7)</font></p>
</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="595.999851" colspan="1" rowspan="1" >
<p>
<font size="2">Mr. Leonard M. Teninbaum is trustee of Leonard M. Teninbaum Keogh Account, and
is believed by us to have sole voting and investment power with respect to the
Series E Preferred Stock held.</font></p>
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="595.999851" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
<p>
<font size="2">(8)</font></p>
</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="595.999851" colspan="1" rowspan="1" >
<p>
<font size="2">Vandoon Partners is believed by us to have sole voting and investment power with
respect to the Series E Preferred Stock held.</font></p>
</td>
</tr>
</table></div>
<font size="2">&nbsp;</font><p align="center"><b>
<font size="2">SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
</font>	</b></p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
16(a) of the Exchange Act requires our officers, directors and persons who own
more than 10% of a class of our securities registered under Section&nbsp;12(g)
of the Exchange Act to file reports of ownership and changes in ownership with
the SEC.  Officers, directors and greater than 10% stockholders are required by
SEC regulation to furnish us with copies of all Section 16(a) forms they
file.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based
solely on a review of copies of such reports furnished to us and written
representations that no other reports were required during the fiscal year ended
September 30, 2003, we believe that all persons subject to the reporting
requirements pursuant to Section 16(a) filed the required reports on a timely
basis with the SEC, except that Renee Warden, Elwood G. Norris, James Irish and
James Croft each filed late one Form 4 report each disclosing one
transaction.</font></p align="center">
<p align="center"><b>
<font size="2">&nbsp;CODE OF BUSINESS CONDUCT AND ETHICS </font>	</b></p>
<p>
<font size="2">
<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</i>&nbsp;We
have adopted a "Code of Business Conduct and Ethics", a code of ethics that
applies to all employees, including our executive officers. A copy of the Code
of Business Conduct and Ethics is posted on our Internet site at <i>www.atcsd.com.</i>
In the event we make any amendments to, or grant any waivers of, a provision of
the Code of Business Conduct and Ethics that applies to the principal executive
officer, principal financial officer, or principal accounting officer that
requires disclosure under applicable SEC rules, we intend to disclose such
amendment or waiver and the reasons therefor on a Form 8-K or on our next
periodic report.</font></p align="center">
<p align="center"><b>
<font size="2">&nbsp;EXECUTIVE COMPENSATION </font>	</b></p>
<p>
<b><font size="2">Compensation of Directors</font></b><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
direct or indirect remuneration was paid or became payable by us to the
directors in their capacity as directors during fiscal 2003.  We do not
anticipate paying during the fiscal year ending September&nbsp;30, 2004 any
direct or indirect remuneration to any director in his capacity as director
other than in the form of reimbursement of expenses of attending directors' or
committee meetings. However, directors have received in the past, and may
receive in the future, stock option grants.</font><p>
<b><font size="2">Summary Compensation Table</font></b><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
is shown below, for the fiscal years ended September&nbsp;30, 2003, 2002 and
2001, information concerning the compensation awarded or paid to, or earned by,
each person who served as Chief Executive Officer during the fiscal year ended
September&nbsp;30, 2003 and two other individuals who served as executive
officers and earned in excess of $100,000 in salary and bonus during the fiscal
year ended September 30, 2003, but who were not serving as executive officers at
the end of the fiscal year ended September&nbsp;30, 2003 (each a "named
executive officer"). None of the other executive officers received salary and
bonus which exceeded $100,000 in the aggregate during the fiscal year ended
September&nbsp;30, 2003.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5">
  <font size="2">-13-</font><hr size="3" color="#999999" STYLE="page-break-after: always">
  <font size="2">&nbsp; </font> </div><p>
</p align="center">
<p align="center"><b>
&nbsp;Summary Compensation Table<br>
<font size="2">Annual Compensation </font>	</b></p>
<div style="position:relative; left: 5">
  <table border=0 cellpadding=0 cellspacing =0 style="border-collapse: collapse" bordercolor="#111111" >
<tr valign="top">
<td width="142.666631" valign="bottom" bgcolor="#FFF3CE" >
<p align="center">
<b><font size="2">Name and</font></b><font size="2"><br></font><b><u>
<font size="2">Principal Position</font></u></b></p align="center">
</td>
<td width="47.999988" valign="bottom" bgcolor="#FFF3CE" >
<p align="center">
<b><font size="2">Fiscal</font></b><font size="2"><br></font><b><u>
<font size="2">Year</font></u></b></p align="center">
</td>
<td width="70.666649" valign="bottom" bgcolor="#FFF3CE" >
<p align="center">
<b><u><font size="2">Salary</font></u></b></p align="center">
</td>
<td width="65.333317" valign="bottom" bgcolor="#FFF3CE" >
<p align="center">
<b><u><font size="2">Bonus</font></u></b></p align="center">
</td>
<td width="90.666644" valign="bottom" bgcolor="#FFF3CE" >
<p align="center">
<b><font size="2">Other Annual</font></b><font size="2"><br></font><b><u>
<font size="2">Compensation</font></u></b></p align="center">
</td>
<td width="89.333311" valign="bottom" bgcolor="#FFF3CE" >
<p align="center">
<b><font size="2">Long
Term</font></b><font size="2"><br><b>Compensation</b><br><b>Securities</b><br><b>Underlying</b><br>
</font><b><u><font size="2">Options
(#)</font></u></b></p align="center">
</td>
<td width="147.999963" valign="bottom" bgcolor="#FFF3CE" >
<p align="center">
<b><font size="2">All Other</font></b><font size="2"><br></font><b>
<font size="2">Compensation</font></b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="142.666631" colspan="1" rowspan="1" >
<p>
<font size="2">Elwood G. Norris,</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="center">
<font size="2">2003</font></p align="center">
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$132,308</font></p align="center">
</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p align="center">
<font size="2">&nbsp;-- </font>	</td>
<td width="90.666644" colspan="1" rowspan="1" >
<p align="center">
<font size="2">--</font></p align="center">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="center">
<font size="2">100,000</font></p align="center">
</td>
<td width="147.999963" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$2,054&nbsp;(1)</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="142.666631" bgcolor="#FFF3CE" >
<p>
<font size="2">Chairman</font></p>
</td>
<td width="47.999988" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">2002</font></p align="center">
</td>
<td width="70.666649" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">$124,615</font></p align="center">
</td>
<td width="65.333317" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">--</font></p align="center">
</td>
<td width="90.666644" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">--</font></p align="center">
</td>
<td width="89.333311" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">--</font></p align="center">
</td>
<td width="147.999963" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">$1,800 (1)</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="142.666631" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="center">
<font size="2">2001</font></p align="center">
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$124,615</font></p align="center">
</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p align="center">
<font size="2">--</font></p align="center">
</td>
<td width="90.666644" colspan="1" rowspan="1" >
<p align="center">
<font size="2">--</font></p align="center">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="center">
<font size="2">75,000</font></p align="center">
</td>
<td width="147.999963" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$1,800 (1)</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="142.666631" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="47.999988" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="70.666649" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="65.333317" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="90.666644" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="89.333311" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="147.999963" BGCOLOR=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="142.666631" colspan="1" rowspan="1" >
<p>
<font size="2">James M. Irish,</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="center">
<font size="2">2003</font></p align="center">
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$94,548</font></p align="center">
</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p align="center">
<font size="2">--</font></p align="center">
</td>
<td width="90.666644" colspan="1" rowspan="1" >
<p align="center">
<font size="2">--</font></p align="center">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="center">
<font size="2">200,000</font></p align="center">
</td>
<td width="147.999963" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$293,148 (2)</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="142.666631" bgcolor="#FFF3CE" >
<p>
<font size="2">Former Chief Executive Officer</font></p>
</td>
<td width="47.999988" bgcolor="#FFF3CE" >
&nbsp;</td>
<td width="70.666649" bgcolor="#FFF3CE" >
&nbsp;</td>
<td width="65.333317" bgcolor="#FFF3CE" >
&nbsp;</td>
<td width="90.666644" bgcolor="#FFF3CE" >
&nbsp;</td>
<td width="89.333311" bgcolor="#FFF3CE" >
&nbsp;</td>
<td width="147.999963" bgcolor="#FFF3CE" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="142.666631" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="90.666644" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="147.999963" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="142.666631" bgcolor="#FFF3CE" >
<p>
<font size="2">Terry Conrad,</font></p>
</td>
<td width="47.999988" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">2003</font></p align="center">
</td>
<td width="70.666649" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">$138,269</font></p align="center">
</td>
<td width="65.333317" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">--</font></p align="center">
</td>
<td width="90.666644" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">--</font></p align="center">
</td>
<td width="89.333311" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">--</font></p align="center">
</td>
<td width="147.999963" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">$1,301 (1)</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="142.666631" colspan="1" rowspan="1" >
<p>
<font size="2">Former President (3)</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="center">
<font size="2">2002</font></p align="center">
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$129,007</font></p align="center">
</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$19,000</font></p align="center">
</td>
<td width="90.666644" colspan="1" rowspan="1" >
<p align="center">
<font size="2">--</font></p align="center">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="center">
<font size="2">--</font></p align="center">
</td>
<td width="147.999963" colspan="1" rowspan="1" >
<p align="center">
<font size="2">--</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="142.666631" bgcolor="#FFF3CE" >
&nbsp;</td>
<td width="47.999988" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">2001</font></p align="center">
</td>
<td width="70.666649" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">$129,808</font></p align="center">
</td>
<td width="65.333317" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">$40,000(4)</font></p align="center">
</td>
<td width="90.666644" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">--</font></p align="center">
</td>
<td width="89.333311" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">--</font></p align="center">
</td>
<td width="147.999963" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">--</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="142.666631" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="90.666644" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="147.999963" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="142.666631" bgcolor="#FFF3CE" >
<p>
<font size="2">James Croft III,</font></p>
</td>
<td width="47.999988" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">2003</font></p align="center">
</td>
<td width="70.666649" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">$122,000</font></p align="center">
</td>
<td width="65.333317" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">--</font></p align="center">
</td>
<td width="90.666644" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">$22,638 (6)</font></p align="center">
</td>
<td width="89.333311" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">91,000</font></p align="center">
</td>
<td width="147.999963" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">$1,892 (1)</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="142.666631" colspan="1" rowspan="1" >
<p>
<font size="2">Former Senior VP of Research</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="center">
<font size="2">2002</font></p align="center">
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$122,000</font></p align="center">
</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p align="center">
<font size="2">--</font></p align="center">
</td>
<td width="90.666644" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$19,200 (6)</font></p align="center">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="center">
<font size="2">20,000</font></p align="center">
</td>
<td width="147.999963" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$1,821 (1)</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="142.666631" bgcolor="#FFF3CE" >
<p>
<font size="2">and Development (5)</font></p>
</td>
<td width="47.999988" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">2001</font></p align="center">
</td>
<td width="70.666649" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">$111,120</font></p align="center">
</td>
<td width="65.333317" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">--</font></p align="center">
</td>
<td width="90.666644" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">$10,338 (6)</font></p align="center">
</td>
<td width="89.333311" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">55,000</font></p align="center">
</td>
<td width="147.999963" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">$1,667 (1)</font></p align="center">
</td>
</tr>
</table></div>
<div style="position:relative; left: -1"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="37.333324" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="537.333199" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="37.333324" colspan="1" rowspan="1" >
<p>
<font size="2">(1)</font></p>
</td>
<td width="537.333199" colspan="1" rowspan="1" >
<font size="2">&nbsp;Represents matching 401(k) contributions. </font>	</td>
</tr>
<tr valign="top">
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="37.333324" colspan="1" rowspan="1" >
<p>
<font size="2">(2)</font></p>
</td>
<td width="537.333199" colspan="1" rowspan="1" >
<p>
<font size="2">Represents separation compensation paid on termination of employment of $258,423
and moving and temporary living expenses of $34,725.</font></p>
</td>
</tr>
<tr valign="top">
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="37.333324" colspan="1" rowspan="1" >
<p>
<font size="2">(3)</font></p>
</td>
<td width="537.333199" colspan="1" rowspan="1" >
<p>
<font size="2">Mr. Conrad served as President from October 2000 until his resignation as an
executive officer in June 2003. Amounts include compensation for each full year.
Mr. Conrad's employment with us ceased in January 2004.</font></p>
</td>
</tr>
<tr valign="top">
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="37.333324" colspan="1" rowspan="1" >
<p>
<font size="2">(4)</font></p>
</td>
<td width="537.333199" colspan="1" rowspan="1" >
<p>
<font size="2">Applied to cancel note.</font></p>
</td>
</tr>
<tr valign="top">
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="37.333324" colspan="1" rowspan="1" >
<p>
<font size="2">(5)</font></p>
</td>
<td width="537.333199" colspan="1" rowspan="1" >
<p>
<font size="2">Mr. Croft was appointed as an executive officer (Senior VP of Research and
Development) in March 2003 and served as an executive officer until September
2003 when he assumed the duties of Chief Technology Officer, which is deemed a
non-executive position. Amounts include compensation for the entire fiscal
year.</font></p>
</td>
</tr>
<tr valign="top">
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="37.333324" colspan="1" rowspan="1" >
<p>
<font size="2">(6)</font></p>
</td>
<td width="537.333199" colspan="1" rowspan="1" >
<font size="2">&nbsp;Represents royalties paid. </font>	</td>
</tr>
</table></div>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
named executive officer received any form of non-cash compensation from us in
the fiscal years ended September 30, 2003, 2002, or 2001, or currently receives
any such compensation, in excess of 10% of the total amount of annual salary and
bonus reported for the named executive officer above.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5">
  <font size="2">-14-</font><hr size="3" color="#999999" STYLE="page-break-after: always">
  <font size="2">&nbsp; </font> </div>
<p align="center">
<font size="2"><br>
<b>&nbsp;OPTION GRANTS </b> </font>	</p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shown
below is further information on grants of stock options in fiscal 2003 to the
named executive officers reflected in the Summary Compensation Table shown above
for fiscal 2003.</font></p align="center">
<p align="center"><b>
<font size="2">&nbsp;Option Grants for Fiscal Year Ended September 30, 2003
</font>	</b></p>
<div style="position:relative; left: 0">
  <table border=0 cellpadding=0 cellspacing =0 style="border-collapse: collapse" bordercolor="#111111" width="667" >
<tr valign="top">
<td width="130" colspan="4" bgcolor="#FFF3CE" >
&nbsp;</td>
<td width="98" bgcolor="#FFF3CE" >
&nbsp;</td>
<td width="104" bgcolor="#FFF3CE" >
&nbsp;</td>
<td width="76" bgcolor="#FFF3CE" >
&nbsp;</td>
<td width="81" bgcolor="#FFF3CE" >
&nbsp;</td>
<td width="178" colspan="3" bgcolor="#FFF3CE" >
<p align="center">
<b><font size="2">Potential Realizable</font></b><font size="2"><br><b>Value at Assumed</b><br><b>Annual Rates
of</b><br><b>Stock Price</b><br><b>Appreciation for</b><br></font><b><u>
<font size="2">Option Term
(3)</font></u></b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="130" colspan="4" valign="bottom" align="center" >
<b>
<font size="2">&nbsp;<u>Name</u> </font>	</b>	</td>
<td width="98" valign="bottom" align="center" >
<p align="center">
<b><font size="2">Number of</font></b><font size="2"><b><br>Options<br>
</b>
</font><u><b><font size="2">Granted (1)</font></b></u></p align="center">
</td>
<td width="104" valign="bottom" align="center" >
<p align="center">
<b><font size="2">Percent of</font></b><font size="2"><b><br>Total Options<br>Granted to<br>Employees
in<br></b></font><u><b><font size="2">Fiscal Year</font></b></u></p align="center">
</td>
<td width="76" valign="bottom" align="center" >
<p align="center">
<b><font size="2">Exercise<br><u>Price</u></font></b></p align="center">
</td>
<td width="82" colspan="2" valign="bottom" align="center" >
<p align="center">
<b><font size="2">Expiration<br><u>Date</u></font></b></p align="center">
</td>
<td width="82" valign="bottom" align="center" >
<p align="center">
<u>
<b><font size="2">5%</font></b></u></p align="center">
</td>
<td width="95" valign="bottom" align="center" >
<p align="center">
<u>
<b><font size="2">10%</font></b></u></p align="center">
</td>
</tr>
<tr valign="top">
<td width="130" colspan="4" bgcolor="#FFF3CE" >
<p>
<b><font size="2">Elwood G. Norris</font></b></p>
</td>
<td width="98" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">55,096</font></p align="center">
</td>
<td width="104" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">5.6%</font></p align="center">
</td>
<td width="76" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">$3.63</font></p align="center">
</td>
<td width="82" colspan="2" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">5/9/08</font></p align="center">
</td>
<td width="82" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">$32,051</font></p align="center">
</td>
<td width="95" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">$ 92,819</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="130" colspan="4" rowspan="1" >
&nbsp;</td>
<td width="98" colspan="1" rowspan="1" >
<p align="center">
<font size="2">44,904</font></p align="center">
</td>
<td width="104" colspan="1" rowspan="1" >
<p align="center">
<font size="2">4.6%</font></p align="center">
</td>
<td width="76" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$3.30</font></p align="center">
</td>
<td width="82" colspan="2" rowspan="1" >
<p align="center">
<font size="2">5/9/08</font></p align="center">
</td>
<td width="82" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$40,940</font></p align="center">
</td>
<td width="95" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$ 90,467</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="130" colspan="4" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="98" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="104" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="76" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="82" colspan="2" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="82" BGCOLOR=#FFF3CE>
&nbsp;</td>
<td width="95" BGCOLOR=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="130" colspan="4" rowspan="1" >
<p>
<b><font size="2">James M. Irish</font></b></p>
</td>
<td width="98" colspan="1" rowspan="1" >
<p align="center">
<font size="2">100,000 (2)</font></p align="center">
</td>
<td width="104" colspan="1" rowspan="1" >
<p align="center">
<font size="2">10.2%</font></p align="center">
</td>
<td width="76" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$3.30</font></p align="center">
</td>
<td width="82" colspan="2" rowspan="1" >
<p align="center">
<font size="2">5/9/08</font></p align="center">
</td>
<td width="82" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$91,173</font></p align="center">
</td>
<td width="95" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$201,468</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="130" colspan="4" bgcolor="#FFF3CE" >
&nbsp;</td>
<td width="98" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">100,000 (2)</font></p align="center">
</td>
<td width="104" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">10.2%</font></p align="center">
</td>
<td width="76" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">$3.43</font></p align="center">
</td>
<td width="82" colspan="2" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">2/10/08</font></p align="center">
</td>
<td width="82" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">$94,765</font></p align="center">
</td>
<td width="95" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">$209,405</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="130" colspan="4" rowspan="1" >
&nbsp;</td>
<td width="98" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="104" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="76" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="82" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="82" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="130" colspan="4" bgcolor="#FFF3CE" >
<p>
<b><font size="2">James Croft III</font></b></p>
</td>
<td width="98" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">51,000</font></p align="center">
</td>
<td width="104" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">5.1%</font></p align="center">
</td>
<td width="76" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">$3.18</font></p align="center">
</td>
<td width="82" colspan="2" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">1/27/08</font></p align="center">
</td>
<td width="82" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">$44,807</font></p align="center">
</td>
<td width="95" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">$99,013</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="130" colspan="4" rowspan="1" >
&nbsp;</td>
<td width="98" colspan="1" rowspan="1" >
<p align="center">
<font size="2">40,000</font></p align="center">
</td>
<td width="104" colspan="1" rowspan="1" >
<p align="center">
<font size="2">4.0%</font></p align="center">
</td>
<td width="76" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$3.30</font></p align="center">
</td>
<td width="82" colspan="2" rowspan="1" >
<p align="center">
<font size="2">5/9/08</font></p align="center">
</td>
<td width="82" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$36,469</font></p align="center">
</td>
<td width="95" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$80,587</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="129" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="538" colspan="8" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="34" rowspan="1" >
<p>
<font size="2">(1)</font></p>
</td>
<td width="633" colspan="10" >
<font size="2">&nbsp;These options were granted under our 2002 Stock Option Plan. These options have an exercise price that was equal to or greater than the fair market value on the date of grant. Such options vest according to terms of option agreement, with vesting being contingent upon continued service with our company.
</font>
</td>
</tr>
<tr valign="top">
<td width="34" rowspan="1" >
<p>
<font size="2">(2)</font></p>
</td>
<td width="633" colspan="10" >
<p>
<font size="2">These options were cancelled in September 2003 in connection with termination of
Mr. Irish's employment.</font></p>
</td>
</tr>
<tr valign="top">
<td width="34" >
<font size="2">(3)</font></td>
<td width="633" colspan="10" >
<font size="2">Potential gains are net of exercise price, but before taxes associated with
exercise. These amounts represent certain assumed rates of appreciation only, in
accordance with the SEC's rules. Actual gains, if any, on stock option exercises
are dependent on the future performance of the common stock, overall market
conditions and the option holder's continued employment through the vesting
period. The amounts reflected in this table may not necessarily be achieved.</font></td>
</tr>
<tr valign="top">
<td width="34" rowspan="1" >
<p>
&nbsp;</p>
</td>
<td width="95" rowspan="1" >
&nbsp;</td>
<td width="538" colspan="9" rowspan="1" >
<p>
&nbsp;</p>
</td>
</tr>
</table></div>
<div align="center" color="#000080" style="position:relative; left: -5">
  <font size="2">-15-</font><hr size="3" color="#999999" STYLE="page-break-after: always">
  <font size="2">&nbsp; </font> </div>
<p align="center">
<b><font size="2">Aggregated Option Exercises and Fiscal Year-End Values</font></b></p align="center">
<div style="position:relative; left: -1">
  <table border=0 cellpadding=0 cellspacing =0 style="border-collapse: collapse" bordercolor="#111111" width="667" >
<tr valign="top">
<td width="269" colspan="6" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="197" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<b><font size="2">Number of Unexercised</font></b><font size="2"><br><b>Options Held At</b><br>
</font><b><u><font size="2">September 30,
2003</font></u></b></p align="center">
</td>
<td width="201" colspan="2" bgcolor=#FFF3CE>
<p align="center">
<b><font size="2">Value of Unexercised</font></b><font size="2"><br><b>In-The-Money Options At</b><br>
</font><b><u><font size="2">September
30, 2003 (1)</font></u></b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="112" colspan="4" valign="bottom" >
<p align="center">
<b><u><font size="2">Name</font></u></b></p align="center">
</td>
<td width="80" valign="bottom" >
<p align="center">
<b><font size="2">Shares</font></b><font size="2"><br><b>Acquired</b><br></font><b><u>
<font size="2">on Exercise</font></u></b></p align="center">
</td>
<td width="77" valign="bottom" >
<p align="center">
<b><font size="2">Value</font></b><font size="2"><br></font><u><b><font size="2">Realized</font></b></u></p align="center">
</td>
<td width="96" valign="bottom" >
<p align="center">
<b><u><font size="2">Exercisable</font></u></b></p align="center">
</td>
<td width="101" colspan="2" valign="bottom" >
<p align="center">
<b><u><font size="2">Unexercisable</font></u></b></p align="center">
</td>
<td width="90" valign="bottom" align="center" >
<p>
<b><u><font size="2">Exercisable</font></u></b></p align="center">
</td>
<td width="111" valign="bottom" >
<p align="center">
<b><u><font size="2">Unexercisable</font></u></b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="112" colspan="4" rowspan="1" bgcolor=#FFF3CE>
<p>
<b><font size="2">Elwood G. Norris</font></b></p>
</td>
<td width="80" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2">--</font></p align="center">
</td>
<td width="77" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2">--</font></p align="center">
</td>
<td width="97" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2">121,000</font></p align="center">
</td>
<td width="100" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2">75,000</font></p align="center">
</td>
<td width="90" bgcolor=#FFF3CE align="center">
<p>
<font size="2">$299,505</font></p align="center">
</td>
<td width="111" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2">$192,614</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="112" colspan="4" rowspan="1" >
<p>
<b><font size="2">James M. Irish</font></b></p>
</td>
<td width="80" colspan="1" rowspan="1" >
<p align="center">
<font size="2">(2)</font></p align="center">
</td>
<td width="77" colspan="1" rowspan="1" >
<p align="center">
<font size="2">(2)</font></p align="center">
</td>
<td width="97" colspan="2" rowspan="1" >
<p align="center">
<font size="2">--</font></p align="center">
</td>
<td width="100" colspan="1" rowspan="1" >
<p align="center">
<font size="2">--</font></p align="center">
</td>
<td width="90" align="center" >
<p align="center">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; --</font></p align="center">
</td>
<td width="111" rowspan="1" >
<p align="center">
<font size="2">--</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="112" colspan="4" rowspan="1" bgcolor=#FFF3CE>
<p>
<b><font size="2">Terry Conrad</font></b></p>
</td>
<td width="80" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2">50,000</font></p align="center">
</td>
<td width="77" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2">$143,500</font></p align="center">
</td>
<td width="97" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2">98,250</font></p align="center">
</td>
<td width="100" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2">28,750</font></p align="center">
</td>
<td width="90" bgcolor=#FFF3CE align="center">
<p>
<font size="2">$209,788</font></p align="center">
</td>
<td width="111" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2">$66,562</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="112" colspan="4" rowspan="1" >
<p>
<b><font size="2">James Croft III</font></b></p>
</td>
<td width="80" colspan="1" rowspan="1" >
<p align="center">
<font size="2">--</font></p align="center">
</td>
<td width="77" colspan="1" rowspan="1" >
<p align="center">
<font size="2">--</font></p align="center">
</td>
<td width="97" colspan="2" rowspan="1" >
<p align="center">
<font size="2">128,500</font></p align="center">
</td>
<td width="100" colspan="1" rowspan="1" >
<p align="center">
<font size="2">37,500</font></p align="center">
</td>
<td width="90" align="center" >
<p>
<font size="2">$335,995</font></p align="center">
</td>
<td width="111" rowspan="1" >
<p align="center">
<font size="2">$94,125</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="44" colspan="1" >
&nbsp;</td>
<td width="31" >
&nbsp;</td>
<td width="37" >
&nbsp;</td>
<td width="555" colspan="8" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="44" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="31" rowspan="1" >
<p>
<font size="2">(1)</font></p>
</td>
<td width="592" colspan="9" >
<p>
<font size="2">Based on the last sale price at the close of business on September 30, 2003 of
$6.05 per share.</font></p>
</td>
</tr>
<tr valign="top">
<td width="44" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="31" rowspan="1" >
<p>
<font size="2">(2)</font></p>
</td>
<td width="592" colspan="9" >
<font size="2">&nbsp;As a part of Mr. Irish severance agreement his 200,000 options, of which 50,000 had vested, were cancelled in September 2003. $202,750 of Mr. Irish's severance compensation was allocated to compensation for termination of stock options. See "Employment Arrangements" below.
</font>
</td>
</tr>
</table></div>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
do not have any stock appreciation rights plans in effect and we have no
long-term incentive plans, as those terms are defined in SEC regulations. During
the fiscal year ended September 30, 2003, we did not adjust or amend the
exercise price of stock options awarded to the named executive officers. We have
no defined benefit or actuarial plans covering any named executive
officer.</font></p align="center">
<p align="center"><b>
<font size="2">&nbsp;EMPLOYMENT ARRANGEMENTS </font>	</b></p>
<p>
<b><font size="2">Mr. Elwood G. Norris - </font> </b><font size="2">Effective September 1, 1997, we entered into a
three year employment contract with Mr. Norris, for his services as Chief
Technology Officer. The three-year term expired on August 31, 2000, but the
agreement remains in effect until one party gives thirty days advance notice of
termination to the other. Mr. Norris now serves as Chairman under the term of
this agreement. The agreement, as amended by the Compensation Committee,
provides for a base salary to $16,667 per month. The agreement provides that Mr.
Norris will participate in bonus, benefit and other incentives at the discretion
of the Board of Directors. Mr. Norris has agreed not to disclose trade secrets
and has agreed to assign certain inventions to us during employment. We are also
obligated to pay Mr. Norris certain royalties.  See "Certain Transactions"
below.</font><p>
<b><font size="2">Mr. James Irish - </font> </b><font size="2">Effective February 10, 2003, we entered into a 90-day
engagement letter with Mr. Irish to serve as Chief Executive Officer. Upon
completion of the 90-day term we expected to enter into a three-year employment
contract. The engagement letter provided for a base salary of $12,500 per month,
subject to review by the Board of Directors from time to time in its discretion.
The engagement letter also provided that Mr. Irish would participate in bonus,
benefit and other incentives at the discretion of the Board of Directors. Mr.
Irish agreed not to disclose trade secrets and agreed to assign certain
inventions to us during employment. No employment agreement was executed and Mr.
Irish resigned in September 2003. Under the terms of the separation agreement,
Mr. Irish received total severance payments of $258,423, which included $202,750
as the in-the-money value of vested stock options for 50,000 shares. All of Mr.
Irish's stock options, representing a total of 200,000 shares, were cancelled.
The separation agreement also contained mutual releases of claims.</font><p>
<b><font size="2">Mr. Terry Conrad - </font> </b><font size="2">Effective
October 15, 2002, we entered into an employment contract with Mr. Conrad for a
two-year term. Mr. Conrad resigned as President in March 2003 and resigned as an
officer of our company in June 2003 and voluntarily terminated the employment
agreement, and worked on an at-will basis until January 2004. The agreement,
prior to its termination, provided for a base salary of $10,917 per month,
subject to review by the Board of Directors from time to time in its discretion.
The agreement provided that Mr. Conrad would participate in bonus, benefit and
other incentives at the discretion of the Board of Directors. The agreement
provided that if we terminated the agreement during its term without cause, Mr. Conrad would be entitled to severance payments equal to three months salary and any bonus on an as if perfected basis. Mr. Conrad
agreed not to disclose trade secrets and agreed to assign certain inventions to
us during his employment.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5">
  <font size="2">-16-</font><hr size="3" color="#999999" STYLE="page-break-after: always">
  <font size="2">&nbsp; </font> </div><p>
<b><font size="2">Mr. James Croft III - </font> </b><font size="2">We entered into an employment contract with Mr.
Croft effective February 28, 2000 for a term expiring September 30, 2004.  Mr.
Croft's employment will however continue beyond such date until we or he
delivers 30 days advance written notice of termination.  The agreement provides
for a base salary of $110,000 per year, subject to review by the Board of
Directors from time to time.  Mr. Croft's current salary under the agreement is
$122,000 per year. The agreement provides that Mr. Croft will participate in
bonus, benefit and other incentives at the discretion of the Board of Directors.
If we terminate the agreement without cause, Mr. Croft will be entitled to
severance payments equal to six months' salary and any bonus on an as if
perfected basis. Mr. Croft has agreed not to disclose trade secrets and has
agreed to assign certain inventions to us during employment. We are obligated to
pay Mr. Croft royalties for certain of his inventions prior to his employment
with us which are licensed or assigned to us. Mr. Croft is entitled to royalties
ranging from 2% to 8% of net revenues for an invention relating to our PureBass
technology, with a minimum royalty of $1,600 per month.  Beginning in March
2004, Mr. Croft also became entitled to royalties ranging from 2% to 5% of net
revenues from another invention. Mr. Croft also became entitled to a minimum
monthly royalty with respect to this invention of $900 per month in order for us
to maintain non-exclusive rights to the invention, and $1,800 per month in order
for us to maintain exclusive rights to this invention.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5">
  <font size="2">-17-</font><hr size="3" color="#999999" STYLE="page-break-after: always">
  <font size="2">&nbsp; </font> </div>&nbsp;<p align="center"><b>
<font size="2">&nbsp;COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION
</font>	</b></p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Messrs.
Wagner, Hunter and Carter served on the Compensation Committee during fiscal
2003.  Mr. Wagner served as our Secretary from February 1994 to March 1999. No
executive officer of our company served as a member of a compensation committee,
or a board of directors performing equivalent functions, of any entity that had
one or more of its executive officers serving as a member of our company's
Compensation Committee.</font></p align="center">
<p align="center"><b>
<font size="2">&nbsp;EQUITY COMPENSATION PLAN INFORMATION </font>	</b></p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
September 30, 2003, we had five equity incentive plans under which equity
securities are or have been authorized for issuance to our employees,
consultants or directors: the 2002 Stock Option Plan, the 1997 Stock Option
Plan, the 1997 Employee Stock Compensation Plan, the 1992 Incentive Stock Option
Plan, and the 1992 Non-Statutory Stock Option Plan. All of these plans have been
approved by our stockholders. In addition, from time to time we issued to
employees, directors and service providers special stock options and warrants to
purchase common shares, and these grants were not approved by stockholders. The
following table gives information as of September 30, 2003:</font></p align="center">
<div style="position:relative; left: 0">
  <table border=0 cellpadding=0 cellspacing =0 style="border-collapse: collapse" bordercolor="#111111" width="668" >
<tr valign="top">
<td width="156" colspan="4" bgcolor=#FFF3CE valign="bottom">
<p align="center">
<b><font size="2">Plan Category</font></b></p align="center">
</td>
<td width="12" bgcolor=#FFF3CE valign="bottom">
&nbsp;</td>
<td width="158" bgcolor=#FFF3CE valign="bottom">
<p align="center">
<b><font size="2">Number of securities to be</font></b><font size="2"><br><b>issued upon exercise
of</b><br><b>outstanding options,</b><br></font><b><font size="2">warrants and
rights</font></b></p align="center">
</td>
<td width="10" bgcolor=#FFF3CE valign="bottom">
&nbsp;</td>
<td width="155" bgcolor=#FFF3CE valign="bottom">
<p align="center">
<b><font size="2">Weighted-average exercise</font></b><font size="2"><br><b>price of outstanding</b><br><b>options,
warrants and</b><br></font><b><font size="2">rights</font></b></p align="center">
</td>
<td width="11" bgcolor=#FFF3CE valign="bottom">
&nbsp;</td>
<td width="157" bgcolor=#FFF3CE valign="bottom">
<p align="center">
<b><font size="2">Number of securities</font></b><font size="2"><br><b>remaining available for</b><br><b>future
issuance under</b><br><b>equity compensation plans</b><br><b>(excluding
securities</b><br></font><b><font size="2">reflected in column (a))</font></b></p align="center">
</td>
<td width="9" bgcolor=#FFF3CE valign="bottom">
&nbsp;</td>
</tr>
<tr valign="top">
<td width="156" colspan="4" rowspan="1" >
&nbsp;</td>
<td width="12" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="158" colspan="1" rowspan="1" >
<p align="center">
<b><u><font size="2">(a)</font></u></b></p align="center">
</td>
<td width="10" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="155" colspan="1" rowspan="1" >
<p align="center">
<b><u><font size="2">(b)</font></u></b></p align="center">
</td>
<td width="11" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="157" colspan="1" rowspan="1" >
<p align="center">
<b><u><font size="2">(c)</font></u></b></p align="center">
</td>
<td width="9" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="156" colspan="4" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="12" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="158" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="155" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="157" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="9" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="156" colspan="4" rowspan="1" >
<p>
<font size="2">Equity compensation plans<br>&nbsp;&nbsp;&nbsp;approved by security<br>
&nbsp;&nbsp; holders</font></p>
</td>
<td width="12" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="158" valign="bottom" >
<p align="center">
<font size="2">1,409,774</font></p align="center">
</td>
<td width="10" valign="bottom" >
&nbsp;</td>
<td width="155" valign="bottom" >
<p align="center">
<font size="2">$3.87</font></p align="center">
</td>
<td width="11" valign="bottom" >
&nbsp;</td>
<td width="157" valign="bottom" >
<p align="center">
<font size="2">719,025</font></p align="center">
</td>
<td width="9" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="156" colspan="4" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Equity compensation plans<br>
&nbsp;&nbsp; not&nbsp;approved by security<br>
&nbsp;&nbsp;
holders</font></p>
</td>
<td width="12" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="158" bgcolor=#FFF3CE valign="bottom">
<p align="center">
<font size="2">402,500</font><sup><font size="2">(1)</font></sup></p align="center">
</td>
<td width="10" bgcolor=#FFF3CE valign="bottom">
&nbsp;</td>
<td width="155" bgcolor=#FFF3CE valign="bottom">
<p align="center">
<font size="2">$5.20</font></p align="center">
</td>
<td width="11" bgcolor=#FFF3CE valign="bottom">
&nbsp;</td>
<td width="157" bgcolor=#FFF3CE valign="bottom">
<p align="center">
<font size="2">&#8212;</font></p align="center">
</td>
<td width="9" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="156" colspan="4" rowspan="1" >
<p>
<font size="2">Total</font></p>
</td>
<td width="12" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="158" colspan="1" rowspan="1" >
<p align="center">
<font size="2">1,812,274</font></p align="center">
</td>
<td width="10" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="155" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$4.17</font></p align="center">
</td>
<td width="11" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="157" colspan="1" rowspan="1" >
<p align="center">
<font size="2">719,025</font></p align="center">
</td>
<td width="9" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="52" colspan="1" >
&nbsp;</td>
<td width="30" >
&nbsp;</td>
<td width="67" >
&nbsp;</td>
<td width="522" colspan="8" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="52" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30" rowspan="1" >
<p>
<font size="2">(1)</font></p>
</td>
<td width="589" colspan="9" >
<font size="2">Consists of individual special stock option and warrant grants to
employees, directors and service<br>
providers approved by the Board of Directors from time to time. <br>
&nbsp;</font></td>
</tr>
</table></div>
<div align="center" color="#000080" style="position:relative; left: -5">
  <font size="2">-18-</font><hr size="3" color="#999999" STYLE="page-break-after: always">
  <font size="2">&nbsp; </font> </div><p align="center">
<br>
<b>
<font size="2">&nbsp;REPORT OF THE COMPENSATION COMMITTEE ON EXECUTIVE COMPENSATION
</font>	</b>
</p align="center">
<p>
<font size="2">
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Introductory Note: </b>The following report is not deemed to be
incorporated by reference by any general statement incorporating by reference
this Proxy Statement into any filing under the Securities Act of 1933 or under
the Exchange Act, except to the extent that we specifically incorporate this
information by reference, and shall not otherwise be deemed soliciting material
or filed under such laws.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
primary philosophy of the Compensation Committee regarding compensation is to
offer packages which reward each of the members of senior management
proportionately to each person's individual performance and to our company's
overall financial performance and growth during the previous fiscal year.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Compensation Committee measured individual and team performance on the basis of
both quantitative and qualitative factors. The Compensation Committee believes
that the components of executive compensation should include base salary, annual
and long-term incentive compensation, stock option grants and other benefits
summarized below.</font><p>
<b><font size="2">Executive compensation</font></b><p>
<font size="2">
<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Base salary. </i>Base salaries are intended to be competitive
with market rates and are based on an internal evaluation of the
responsibilities of each position. Salaries for executive officers are reviewed
on an annual basis. The Committee's compensation policies are designed to set
our executive compensation, including salary and short-term and long-term
incentive programs, at a level consistent with amounts paid to executive
officers of comparable companies and consistent with marketplace requirements to
attract and retain management personnel with the experience and background to
drive the commercialization of our technologies.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Committee's compensation policies are particularly designed to align executive
officer and senior management salaries and bonus compensation to the
individual's performance in the short-term and to emphasize compensation from
equity, primarily employee stock options, for long-term incentives.</font><p>
<font size="2">
<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long term incentives. </i>Our long-term incentive program
consists of a stock option program pursuant to our executive officers (as well
as other key employees) are periodically granted stock options at the then fair
market value (or higher prices) of our common stock. These option programs are
designed to provide such persons with significant compensation based on our
overall performance as reflected in the stock price, to create a valuable
retention device through standard two to five year vesting schedules and to help
align employees' and stockholders' interests. Stock options are typically
granted at the time of hire to key new employees, at the time of promotion to
certain employees and periodically to a broad group of existing key employees
and executive officers.</font><p>
<b><font size="2">Chief Executive Officer compensation</font></b><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Compensation Committee has responsibility for determining the compensation of
the Chief Executive Officer.  Mr. Elwood G. Norris served as our Chief Executive
Officer until  February&nbsp;10, 2003.  Mr. Norris currently remains active in
management as Chairman of the Board, an executive position.  Prior to his
appointment as Chief Executive Officer in September&nbsp;2000, Mr.&nbsp;Norris
had been employed by us as Chief Technology Officer pursuant to a three-year
employment agreement dated September&nbsp;1, 1997.  The three-year term expired
on August 31, 2000, but the agreement remains in effect until one party gives
thirty days advance notice of termination to the other. Mr. Norris now serves as
Chairman under the term of this agreement. The agreement, as amended by the
Compensation Committee, provides for a base salary of $16,667 per month. The
agreement provides that Mr. Norris will participate in bonus, benefit and other
incentives at the discretion of the Board of Directors. Mr. Norris has agreed
not to disclose trade secrets and has agreed to assign certain inventions to us
during employment. We are also obligated to pay Mr. Norris certain royalties.
See "Certain Transactions" below.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In September 2003, Mr.&nbsp;Norris' base salary was
increased from $120,000 per year to $200,000 per year. The Compensation
Committee granted this increase after consideration of Mr.&nbsp;Norris' duties,
responsibilities and performance during fiscal 2003. In particular, the
Committee noted that Mr.&nbsp;Norris was instrumental in raising over $13.4 million
in capital</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5">
  <font size="2">-19-</font><hr size="3" color="#999999" STYLE="page-break-after: always">
  <font size="2">&nbsp; </font> </div><p>
<p>
<font size="2">for our company during fiscal 2003, Mr.&nbsp;Norris oversaw the
recruitment of a professional, experienced management team, and Mr.&nbsp;Norris successfully
raised the profile of our company and our products through national press
coverage.  The Compensation Committee feels that Mr.&nbsp;Norris' compensation
remains below market for a person of his experience and responsibilities.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective
February 10, 2003, we entered into a 90-day engagement letter with Mr. Irish to
serve as Chief Executive Officer. Upon completion of the 90-day term we expected
to enter into a three-year employment contract. The engagement letter provided
for a base salary of $12,500 per month, subject to review by the Board of
Directors from time to time in its discretion. The engagement letter also
provided that Mr. Irish would participate in bonus, benefit and other incentives
at the discretion of the Board of Directors. Mr. Irish agreed not to disclose
trade secrets and agreed to assign certain inventions to us during employment.
No employment agreement was executed and Mr. Irish resigned in September 2003.
Under the terms of the separation agreement, Mr. Irish received total severance
payments of $258,423, which included $202,750 as the in-the-money value of
vested stock options for 50,000 shares. All of Mr. Irish's stock options,
representing a total of 200,000 shares, were cancelled. The separation agreement
also contained mutual releases of claims.  Due to Mr.&nbsp;Irish's short tenure
with our company, his compensation was not specifically performance-related.</font><p>
<b><font size="2">Performance-based compensation</font></b><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
Section 162(m) of the Internal Revenue Code, compensation payments in excess of
$1 million to each person who served as Chief Executive Officer at the end of a
taxable year, and to each of the other most highly compensated executive
officers whose compensation must be disclosed in SEC filings, are subject to a
limitation of $1 million on the amount we may deduct as an ordinary business
expense.  Certain performance-based compensation is not subject to the
limitation on deductibility, but our option grants prior to January&nbsp;2001
did not qualify as performance-based compensation.  The total taxable
compensation to each employee subject to Section&nbsp;162(m) during the taxable
year ended September&nbsp;30, 2003 our company was below $1&nbsp;million.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
issued stock options prior to January&nbsp;2001 to the employees subject to
Section&nbsp;162(m) and to certain other executive officers who may become
subject to Section&nbsp;162(m) in future tax years.  Where these options are
non-qualified stock options, or if any subject employee makes a disqualifying
disposition of an incentive stock option, the amount of the deduction that we
would otherwise be entitled to may be limited to the extent the ordinary income
recognized by the subject employee upon such exercise or disqualifying
disposition, together with all other compensation in a given taxable year,
exceeds $1 million.  The Compensation Committee intends to attempt to qualify as
performance-based compensation future stock option grants to persons who are or
may become subject to Section&nbsp;162(m).  However, the Committee may in its
discretion award stock options to existing or potential future employees subject
to Section&nbsp;162(m) which do not qualify as performance-based compensation,
and the exercise or subsequent disposition of stock acquired from such options
may therefore be subject to the limitation on deductibility in
Section&nbsp;162(m).</font></p>
<p style="margin-left:80"><font size="2">COMPENSATION COMMITTEE<br>
Richard M. Wagner<br>
David J.
Carter<br>
Daniel
Hunter<br>
&nbsp;</font><div align="center" color="#000080" style="position:relative; left: -5">
  <font size="2">-20-</font><hr size="3" color="#999999" STYLE="page-break-after: always">
  <font size="2">&nbsp; </font> </div>
<p align="center"><b>
<font size="2">&nbsp;REPORT OF THE AUDIT COMMITTEE </font>	</b></p>
<p>
<font size="2">
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Introductory Note: </b>The following report is not deemed to be
incorporated by reference by any general statement incorporating by reference
this Proxy Statement into any filing under the Securities Act or under the
Exchange Act, except to the extent that we specifically incorporate this
information by reference, and shall not otherwise be deemed soliciting material
or filed under such Acts.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following is the report of the Audit Committee with respect to our audited
financial statements for the fiscal year ended September&nbsp;30, 2003.</font><p>
<font size="2">
<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</i>The
Audit Committee has reviewed and discussed the audited financial statements of
American Technology Corporation with management. The Audit Committee has
discussed with BDO Seidman, LLP, our independent accountants, the matters
required to be discussed by Statement of Auditing Standards No. 61,
<i>Communication with Audit Committees</i>, which includes, among other items, matters
related to the conduct of the audit of our financial statements. The Audit
Committee has also received written disclosures and the letter from BDO Seidman,
LLP required by Independence Standards Board Standard No. 1, which relates to
the accountants' independence from our company, and has discussed with BDO
Seidman, LLP their independence from our company.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Audit Committee acts pursuant to the Audit Committee Charter adopted by the
Board of Directors.  The Audit Committee Charter was amended and restated in
April 2004.  Each of the members of the Audit Committee qualifies as an
independent director under the current listing standards of the Nasdaq Stock
Market. The Charter of the Audit Committee is attached as Annex 1 to this proxy
statement.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based
on the review and discussions referred to above, the Audit Committee recommended
to the Board of Directors that audited financial statements be included in our
company's Annual Report on Form 10-K for the fiscal year ended
September&nbsp;30, 2003.</font></p>
<p style="margin-left:80"><font size="2">AUDIT COMMITTEE<br>
Richard M. Wagner<br>
David J.
Carter<br>
Daniel
Hunter<br>
&nbsp;</font><div align="center" color="#000080" style="position:relative; left: -5">
  <font size="2">-21-</font><hr size="3" color="#999999" STYLE="page-break-after: always">
  <font size="2">&nbsp; </font> </div>
<p align="center"><b>
<font size="2">&nbsp;COMPANY STOCK PRICE PERFORMANCE </font>	</b></p>
<p>
<font size="2">
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Introductory Note: </b>The stock price performance graph below
is required by the SEC and will not deemed to be incorporated by reference by
any general statement incorporating by reference this Proxy Statement into any
filing under the Securities Act, or under the Exchange Act, except to the extent
that we specifically incorporate this information by reference, and shall not
otherwise be deemed soliciting material or filed under such laws.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The following graph compares the five-year cumulative total return on the our
common stock to the total returns of 1) Nasdaq Stock Market and 2) Nasdaq Stock
- - Electronic &amp; Electrical Equipment &amp; Components, excluding Computer
Equipment. This comparison assumes in each case that $100 was invested on
September&nbsp;30, 1998 and all dividends were reinvested.  Our fiscal year ends
on September&nbsp;30.</font></p align="center">
<p align="center">
<img border="0" src="perf_graph.jpg" width="412" height="222"><p align="center"><b>
<font size="2">&nbsp;CERTAIN TRANSACTIONS </font>	</b></p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
September 2001, a family trust for which Mr. Elwood G. Norris serves as trustee
purchased $250,000 in principal amount of our 12% Convertible Subordinated
Promissory Notes, and in connection with such purchase, received a warrant to
purchase 125,000 shares of common stock. The purchase by such trust was on the
same terms as those offered to the other purchasers in the same financing. In
November 2002, we and a majority of the holders of such notes agreed to extend
the maturity date of the notes, including the note held by Mr. Norris' trust,
from December 31, 2002 to December 31, 2003. All of such notes were redeemed by
us in accordance with their terms in June 2003, and Mr. Norris' family trust
received 150,602 shares upon redemption.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain
beneficial owners of more than 5% of our then outstanding shares of Series D
Preferred Stock also held 12% Convertible Subordinates Notes whose maturity
dates were extended on the same terms as those described above, and which were
redeemed as described above. These holders were: Canusa Trading, Ltd. ($200,000
principal amount, 120,482 shares issued on redemption), Jerry E. Polis Family
Trust ($250,000 principal amount, 150,602 shares issued on redemption), Leonard
M. Teninbaum Keogh Account ($300,000 principal amount, 180,033 shares issued on
redemption), NGHK Holdings, LLC ($250,000 principal amount, 150,602 shares
issued on redemption), Stifel, Nicolaus Custodian for Jonathan A. Berg ($50,000
principal amount, 30,120 shares issued on redemption), and James C. Zolin and
Josephine M. Zolin (aggregate $150,000 principal amount, aggregate 90,015 shares
issued on redemption).</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5">
  <font size="2">-22-</font><hr size="3" color="#999999" STYLE="page-break-after: always">
  <font size="2">&nbsp; </font> </div><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
the terms of an Assignment of Technology Agreement dated March 2, 1993 and an
Addendum Agreement dated December 2, 1996, we are obligated to pay Mr. Norris a
2% royalty on net sales from certain of our technologies, including HyperSonic
Sound. The royalty obligation continues until at least March 1, 2007, and for
any longer period during which we sell products or license technologies subject
to any patent assigned to us by Mr. Norris under this agreement. We have no
present plans to market any of the technologies subject to such agreement other
than HyperSonic Sound. Mr. Norris waived royalties payable under this agreement
in the fiscal year ended September 30, 2003. It is expected that royalties will
be paid to Mr. Norris during fiscal 2004. The amount of such royalties will
depend on actual sales.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mark
Norris, the son of Elwood G. Norris, is a full-time non-executive employee of
our company. In his role as a Mechanical Engineer, Mark Norris was paid $80,000
in salary for the fiscal year ended September 30, 2003. Mark Norris was also
granted 19,000 common shares valued at $78,280 as a bonus in recognition of his
key role in the invention and development of our vacuum-less HSS emitter. During
fiscal 2003 Mark Norris was also awarded one stock option grant for 15,000
common shares vesting quarterly over two years and exercisable for five years at
$3.30 per share. He exercised previously granted options for 17,500 common
shares during fiscal 2003 realizing a value of $42,052. No other family member
of any executive officer, director or 5% stockholder received compensation of
more than $60,000 during the year ended September 30, 2003.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain
beneficial owners of more than 5% of our then outstanding shares of Series D
Preferred Stock purchased our 8% Senior Secured Promissory Notes on September
30, 2002. These holders were: NGHK Holdings, LLC ($1,500,000 principal amount),
Sunrise Management Profit Sharing Plan ($50,000 principal amount), Sunrise
Capital, Inc. ($100,000 principal amount), and Canusa Trading Ltd. ($350,000
principal amount). These notes were originally due December 31, 2003. The notes
were secured by our accounts receivable, equipment, goods, instruments and
inventory. The notes plus two months' additional accrued interest were subject
to mandatory redemption upon the closing of a sale of equity securities in an
amount exceeding $3,000,000. In February 2003, these notes were amended with the
consent of the holders of a majority of the outstanding principal amount to
extend the maturity date to December 31, 2004. The notes were further amended to
permit the then-applicable amount payable by us on redemption to be converted
into equity securities. Each of Canusa Trading Ltd., Sunrise Management Profit
Sharing Plan and Sunrise Capital, Inc. converted their entire principal amounts
to Series E Preferred Stock, and NGHK Holdings, LLC converted $500,000 of its
principal amount to Series E Preferred Stock. Each converting holder was paid in
cash the amount of accrued interest through April 2003. In June 2003 a total of
$681,845 of the balance of the notes, all held by NGHK Holdings, LLC, was
applied to exercise warrants and in July 2003 the balance of $318,155 was
redeemed by us.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain
beneficial owners of more than 5% of our then outstanding shares of Series D
Preferred Stock purchased the shares of our Series E Preferred Stock and
associated warrants. Each such purchase was on the same terms as those offered
to other investors in the Series E round. The $10.00 purchase price of each
share of Series E Preferred Stock, increased by $0.60 per share per year, may be
converted at the election of a holder one or more times into common stock at a
conversion price of $3.25. If after September 30, 2003, 90% of the volume
weighted average price of the common stock for the five trading days prior to
conversion (the discount market price) is less than $3.25, the conversion price
will be reduced to the discount market price; provided, however, that the
conversion price cannot be below $2.00 per share. The Series E Preferred Stock
may be called by us for conversion if the market price of our common shares
exceeds $9.50 per share for ten consecutive trading days and certain conditions
are met. The Series E Preferred Stock will be subject to mandatory conversion on
December 31, 2006. Each purchaser of Series E Preferred Stock was also granted a
warrant to purchase one and one half shares of common stock for each share of
Series E Preferred Stock purchased, exercisable until December 31, 2007 at a
price of $3.25 per share. Granite Capital LP and Granite Capital II LP purchased
22,500 and 2,500 shares of Series E Preferred Stock, and obtained warrants to
purchase 33,750 and 3,750 shares of common stock, respectively; and Stifel
Nicolaus Custodian for Jonathan Berg IRA purchased 10,000 shares of Series E
Preferred Stock and obtained warrants to purchase 15,000 shares of common stock.
NGHK Holdings LLC, Canusa Trading, Ltd, Sunrise Management Profit Sharing Plan
and Sunrise Capital, Inc. also purchased Series E Preferred Stock and associated
warrants via conversion of principal of 8% Senior Secured Notes, as discussed
above.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5">
  <font size="2">-23-</font><hr size="3" color="#999999" STYLE="page-break-after: always">
  <font size="2">&nbsp; </font> </div>
<p align="center"><b>
<font size="2">&nbsp;OTHER MATTERS </font>	</b></p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors knows of no other matters that will be presented for
consideration at the Annual Meeting.  If any other matters are properly brought
before the meeting, it is the intention of the persons named in the accompanying
proxy to vote on such matters in accordance with their best judgment.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
stockholder or stockholder's representative who, because of a disability, may
need special assistance or accommodation to allow him or her to participate at
the Annual Meeting may request reasonable assistance or accommodation from us by
contacting Chairman of the Board, American Technology Corporation, 13114 Evening
Creek Drive South, San Diego, California 92128 or at (858) 679-2114 . To provide
us sufficient time to arrange for reasonable assistance or accommodation, please
submit all requests by May&nbsp;30, 2004.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Whether
you intend to be present at the Annual Meeting or not, we urge you to return
your signed proxy card promptly.</font></p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="359.999910" colspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" >
<font size="2">By Order of the Board of Directors</font></td>
</tr>
<tr valign="top">
<td width="359.999910" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
&nbsp;</p>
</td>
</tr>
<tr valign="top">
<td width="359.999910" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">/s/ Elwood G. Norris</font></p>
</td>
</tr>
<tr valign="top">
<td width="359.999910" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Elwood G. Norris<br>Chairman of the Board</font></p>
</td>
</tr>
</table></div>
<p>
<font size="2">April&nbsp;29, 2004</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
copy of our Annual Report to the Securities and Exchange Commission on
Form&nbsp;10-K for the fiscal year ended September&nbsp;30, 2003 is available
without charge upon written request to the Chairman of the Board, American
Technology Corporation, 13114 Evening Creek Drive South, San Diego, California
92128.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5">
  <font size="2">-24-</font><hr size="3" color="#999999" STYLE="page-break-after: always">
  <font size="2">&nbsp; </font> </div><p>
<p align="center">
<font size="2">ANNEX 1</font><p align="center">
<font size="2">CHARTER OF THE AUDIT COMMITTEE</font></p align="center">
<p align="center">
<font size="2">&nbsp;ADOPTED APRIL 7, 2004 </font>	</p>
<p align="center">&nbsp;</p>
<div align="center" color="#000080" style="position:relative; left: -5"><hr size="3" color="#999999" STYLE="page-break-after: always">
  <font size="2">&nbsp; </font> </div>
<p align="center"><b>
<font size="2">AMERICAN TECHNOLOGY CORPORATION<br>
BOARD OF DIRECTORS<br>
AUDIT COMMITTEE CHARTER</font></b></p>
<p align="center">
<font size="2">(Approved April 7, 2004)
</font>	</p>
<p>
<b><u><font size="2">Organization</font></u></b><p>
<font size="2">There shall be a committee of the Board of Directors of American Technology
Corporation (the &#8220;Company&#8221;) to be known as the Audit Committee (the
&#8220;Committee&#8221;).  The Board of Directors shall appoint the members of
the Committee, which will be composed of at least three directors.  The
Committee shall be composed entirely of directors that are independent, as
defined by the applicable rules and regulations of the Securities and Exchange
Commission and Nasdaq, and are free of any relationship that, in the opinion of
the Board of Directors, would interfere with their exercise of independent
judgment.  All Committee members must satisfy the financial literacy
requirements of the applicable rules and regulations of Nasdaq, and at least one
member shall have past employment experience in finance or accounting, or other
comparable experience or background which results in the member&#8217;s
financial sophistication. In addition, at least one member of the Committee may
be designated as the &#8220;audit committee financial expert,&#8221; as defined
by applicable legislation and regulation of the Securities and Exchange
Commission.</font><p>
<b><u><font size="2">Statement of Policy</font></u></b><p>
<font size="2">The primary purposes of the Committee are to assist the Board of Directors in
fulfilling its oversight responsibilities for:</font><ul>
<li>
<p style="margin-bottom: 12"><font size="2">the accounting and financial reporting processes of the Company and the
audits of the financial statements of the Company;</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">the Company&#8217;s compliance with legal and regulatory requirements;</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">the independent auditors&#8217; qualifications and independence; and</font></li>
<li><font size="2">the performance of the Company&#8217;s independent auditors.</font></li></ul><p>
<font size="2">Except as otherwise required by applicable law, regulations or listing
standards, all major decisions are considered by the Board of Directors as a
whole.</font><p>
<b><u><font size="2">Authority</font></u></b><p>
<font size="2">The Committee has authority to conduct or authorize investigations into any
matters within its scope of responsibility. It is empowered to:</font></p>
<ul>
<li>
<p style="margin-bottom: 12"><font size="2">Appoint, compensate, and oversee the work of any public accounting firm
employed by the Company.</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">Resolve any disagreements between management and the independent auditors
regarding financial reporting.</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">Pre-approve all auditing and non-audit services by the Company&#8217;s
independent auditors.</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">Retain independent counsel, accountants, or others at the expense of the
Company to advise the Committee or assist in the conduct of an
investigation.</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">Seek any information it requires from employees&#8212;all of whom are
directed to cooperate with the Committee's requests&#8212;or external
parties.</font></li>
<li><font size="2">Meet with Company officers, independent auditors, or outside counsel, as
necessary.</font></li></ul><p>
<b><u><font size="2">Responsibilities</font></u></b><p>
<font size="2">The Committee will carry out the following responsibilities:</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><hr size="3" color="#999999" STYLE="page-break-after: always">
  <font size="2">&nbsp; </font> </div><p>
<b><u><font size="2">Financial Statements</font></u></b><ul>
<li>
<p style="margin-bottom: 12"><font size="2">Review significant accounting and reporting issues, including complex or
unusual transactions and highly judgmental areas, recent professional and
regulatory pronouncements, off-balance sheet structures, and understand their
impact on the financial statements.</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">Review with management and the independent auditors the results of the
audit, including any difficulties encountered.</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">Review the annual financial statements and confirm they are complete and
consistent with information known to Committee members, and reflect appropriate
accounting principles.</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">Review other sections of the annual report and related regulatory filings,
including the disclosures made in the Management Discussion and Analysis, before
release and consider the accuracy and completeness of the information.</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">Understand how management develops interim financial information, and the
nature and extent of independent auditor involvement.</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">Review interim financial reports with management and the independent
auditors before filing with regulators, including the disclosures made in the
Management Discussion and Analysis, and consider whether they are complete and
consistent with the information known to Committee members.</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">Review disclosures made to the Committee by the Company&#8217;s CEO and CFO
during their certification process for the annual report and interim reports
about any significant deficiencies in the design or operation of internal
controls or material weaknesses therein and any fraud involving management or
other employees who have significant disagreements with management.</font></li>
<li><font size="2">Review with outside counsel any legal matter that could have a significant
impact on the Company&#8217;s financial statements.</font></li></ul><p>
<b><u><font size="2">Internal Control</font></u></b><ul>
<li>
<p style="margin-bottom: 12"><font size="2">Consider the effectiveness of the Company&#8217;s internal control system,
including information technology security and control.</font></li>
<li><font size="2">Understand the scope of the independent auditors&#8217; review of internal
control over financial reporting, and obtain reports on significant findings and
recommendations, together with management&#8217;s responses.</font></li></ul><p>
<b><u><font size="2">Independent Audit</font></u></b><ul>
<li>
<p style="margin-bottom: 12"><font size="2">Review the independent auditors&#8217; proposed audit scope and approach,
including coordination of audit effort with management.</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">Review the performance of the independent auditors, and exercise final
approval on the appointment or discharge of the auditors.</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">Review and confirm the independence of the independent auditors by obtaining
statements from the auditors on relationships between the auditors and the
Company, including non-audit services, and discussing the relationships with the
auditors.</font></li>
<li><font size="2">On a regular basis, meet separately with the independent auditors to discuss
any matters that the Committee or auditors believe should be discussed
privately.</font></li></ul><p>
<b><u><font size="2">Compliance</font></u></b><ul>
<li>
<p style="margin-bottom: 12"><font size="2">Review the effectiveness of the system for monitoring compliance with laws
and regulations and the results of management&#8217;s investigation and
follow-up (including disciplinary action) of any instances of
noncompliance.</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">Review the findings of any examinations by regulatory agencies, and any
auditor observations.</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">Obtain from the independent auditors assurance that Section 10A(b) of the
Securities Exchange Act of 1934 has not been
implicated.</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">Review the process for communicating the code of ethics to Company
personnel, and for monitoring compliance therewith.</font></li></ul>
<div align="center" color="#000080" style="position:relative; left: -5"><b>
  </b><font size="2">-2-</font><hr size="3" color="#999999" STYLE="page-break-after: always">
  <font size="2">&nbsp; </font> </div><ul>
<li>
<p style="margin-bottom: 12"><font size="2">Establish procedures for the receipt, retention and treatment of complaints
received by the Company regarding accounting, internal accounting controls or
auditing matters, and the confidential, anonymous submission by employees of
concerns regarding questionable accounting or auditing matters.</font></li>
<li><font size="2">Obtain regular updates from management and Company legal counsel regarding
compliance
matters.</font></li></ul><p>
<b><u><font size="2">Reporting Responsibilities</font></u></b><ul>
<li>
<p style="margin-bottom: 12"><font size="2">Regularly report to the Board of Directors about Committee activities,
issues, and related recommendations.</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">Provide an open avenue of communication between the independent auditors and
the Board of Directors.</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">Report annually to the shareholders, describing the Committee&#8217;s
composition, responsibilities and how they were discharged, including approval
of non-audit services.</font></li>
<li>
<p style="margin-bottom: 6"><font size="2">Review any other reports the Company issues that relate to Committee
responsibilities, including having discussion with management regarding the
Company&#8217;s earnings press releases, including the use of &#8220;pro
forma&#8221; or &#8220;adjusted&#8221; non-GAAP information, as well as other
financial information and earnings guidance provided to analysts and rating
agencies.  This review may be general (i.e., the types of information to be
disclosed and the type of presentations to be made), and unless otherwise
provided in a Company policy, the Committee does not need to discuss each
release in advance.</font></li></ul><p>
<b><u><font size="2">Other Responsibilities</font></u></b><ul>
<li>
<p style="margin-bottom: 12"><font size="2">Perform other activities related to this charter as requested by the Board
of Directors.</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">Review all related party transactions (as that term is defined in SEC
Regulation S-K, Item 404) on an ongoing basis. All such transactions must be
approved by the Committee.</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">Institute and oversee special investigations as needed.</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">With the assistance of legal counsel, review and assess the adequacy of this
charter annually, and present a report to the Board at the Board&#8217;s annual
organizational meeting of the results of the Committee&#8217;s assessment,
including any recommendations for changes to this charter.</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">Confirm annually that all responsibilities outlined in this charter have
been carried out.</font></li>
<li><font size="2">Evaluate the Committee&#8217;s and individual members&#8217; performance on
a regular basis, and annually provide to the Board for its evaluation a report
concerning the performance of the Committee.</font></li></ul><p>
<b><u><font size="2">Meetings and Voting</font></u></b><p>
<font size="2">The Committee will meet at least four times a year, with authority to convene
additional meetings, as circumstances require.  The affirmative vote of a
majority of the members present at a meeting at which a quorum is present shall
constitute action of the Committee.  The Committee will invite members of
management, auditors or others to attend meetings and provide pertinent
information, as necessary. It will hold private meetings with auditors (see
above) and executive sessions. Meeting agendas will be prepared and provided in
advance to members, along with appropriate briefing materials. Minutes will be
prepared. </font> <p>
<b><u><font size="2">Compensation</font></u></b><p>
<font size="2">Members of the Committee shall receive compensation for attending Committee
meetings as defined and approved by the Board of Directors.</font><p>
<b><u><font size="2">Limitation of Committee&#8217;s Role</font></u></b><p>
<font size="2">While the Committee has the responsibilities and powers set forth in this
charter, it is not the duty of the Committee to plan or conduct audits or to
determine that the Company&#8217;s financial statements and disclosures are
complete and accurate and are in accordance with generally accepted accounting
principles and applicable rules and regulations.  These are the responsibilities
of management and the independent auditors.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5">
  <font size="2">-3-</font><hr size="3" color="#999999" STYLE="page-break-after: always">
  <font size="2">&nbsp; </font> </div><p>
<p align="center">
<font size="2">ANNEX 2</font><p align="center">
<font size="2">CHARTER OF THE COMPENSATION COMMITTEE</font></p align="center">
<p align="center">
<font size="2">&nbsp;ADOPTED APRIL 7, 2004 </font>	</p>
<p align="center">&nbsp;</p>
<div align="center" color="#000080" style="position:relative; left: -5"><hr size="3" color="#999999" STYLE="page-break-after: always">
  <font size="2">&nbsp; </font> </div>
<p align="center"><b>
<font size="2">AMERICAN TECHNOLOGY CORPORATION<br>
BOARD OF DIRECTORS<br>
COMPENSATION COMMITTEE CHARTER</font></b></p>
<p align="center">
<font size="2">(Approved April 7, 2004)
</font>	</p>
<p>
<b><u><font size="2">Organization</font></u></b><p>
<font size="2">There shall be a committee of the Board of Directors of American Technology
Corporation (the &#8220;Company&#8221;) to be known as the Compensation
Committee (the &#8220;Committee&#8221;).  The Committee shall be composed
entirely of directors who are:</font><ul>
<li>
<p style="margin-bottom: 12"><font size="2">&#8220;independent,&#8221; as defined by the applicable rules and
regulations of the Securities and Exchange Commission and Nasdaq, and are free
of any relationship that, in the opinion of the Board of Directors, would
interfere with their exercise of independent judgment;</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">&#8220;non-employee directors,&#8221; as that term is defined in Rule 16b-3
promulgated under the Securities Exchange Act of 1934, as amended; and</font></li>
<li><font size="2">&#8220;outside directors,&#8221; as that term is defined in Section 162(m)
of the Internal Revenue Code of 1986, as amended.</font></li></ul><p>
<font size="2">Unless the Board elects a Chair of the Committee, the Committee shall elect a
Chair by majority vote.</font><p>
<b><u><font size="2">Statement of Policy</font></u></b><p>
<font size="2">The primary purposes of the Committee are to:</font><ul>
<li>
<p style="margin-bottom: 12"><font size="2">Provide assistance to the Board of Directors in fulfilling its
responsibilities to the shareholders, potential shareholders, and the investment
community relating to compensation of the Company&#8217;s executives.</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">Administer the Company&#8217;s equity compensation plans.</font></li>
<li><font size="2">Report on executive compensation for inclusion in the Company&#8217;s proxy
statement, in accordance with applicable rules and regulations.</font></li></ul><p>
<font size="2">Except as otherwise required by applicable law, regulations or listing
standards, all major decisions are considered by the Board of Directors as a
whole.</font><p>
<b><u><font size="2">Responsibilities</font></u></b><p>
<font size="2">The Committee shall have the following responsibilities:</font><ul>
<li>
<p style="margin-bottom: 12"><font size="2">The Committee shall review and approve performance goals and objectives for
executive officers, including the CEO.</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">The Committee shall evaluate the CEO&#8217;s performance in light of those
goals and objectives, and recommend to the Board the CEO&#8217;s compensation
level based on this evaluation. The CEO may not participate in these
deliberations.</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">In determining the long-term incentive component of CEO compensation, the
Committee should consider the Company&#8217;s performance and relative
shareholder return, the value of similar incentive awards to CEOs at comparable
companies, and the awards given to the CEO in past years, and other factors it
considers relevant. </font>  </li>
<li>
<p style="margin-bottom: 12"><font size="2">The Committee shall recommend to the Board the compensation of executive
officers other than the CEO.  The CEO may be present at such deliberations, but
may not vote.</font></li></ul>
<div align="center" color="#000080" style="position:relative; left: -5"><b>&nbsp;</b><hr size="3" color="#999999" STYLE="page-break-after: always">
  <font size="2">&nbsp; </font> </div><ul>
<li>
<p style="margin-bottom: 12"><font size="2">The Committee shall review and approve incentive-compensation plans and
equity-based plans for all of the Company&#8217;s executive officers, and make
recommendations to the Board for their approval as
applicable.</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">The Committee shall administer and make grants under the Company&#8217;s
incentive-compensation plans and equity-based plans to the extent such function
is delegated to the Committee by the Board with respect to each such plan.</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">The Committee shall develop and implement a long-term strategy of employee
compensation and the types of stock and other compensation plans to be used by
the Company and the shares and amounts reserved thereunder.</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">The Committee shall address any other compensation matters as from time to
time directed by the Board.</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">The Committee shall report on executive compensation as required by
applicable laws and regulations for inclusion in the Company's proxy statement
or other SEC filings, discussing among other things: </font> <ul type="square">
<li>
<p style="margin-bottom: 12"><font size="2">The criteria on which compensation paid to the CEO for the last completed
fiscal year is based. </font> </li>
<li>
<p style="margin-bottom: 12"><font size="2">The relationship of such compensation to the Company&#8217;s performance.
</font>
</li>
<li>
<p style="margin-bottom: 12"><font size="2">The Committee&#8217;s executive compensation policies applicable to
executive officers.</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">Whether the Company&#8217;s allowable deduction for compensation to the
Company&#8217;s executive officers could be limited pursuant to Section 162(m)
of the Internal Revenue Code.</font></li></ul></li>
<li>
<p style="margin-bottom: 12"><font size="2">The Committee shall annually review Board compensation and make related
recommendations to the Board.</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">The Committee shall annually provide to the Board for its evaluation a
report concerning the performance of the Committee.</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">The Committee shall, with the assistance of legal counsel, review and assess
the adequacy of this charter annually, and present a report to the Board at the
Board&#8217;s annual organizational meeting of the results of its assessment,
including any recommendations for changes to this charter.</font></li>
<li><font size="2">The Committee shall regularly address the issues of appointment and removal
of members of the Committee, qualification of Committee members, and Committee
structure and operation, and shall make recommendations to the Board concerning
any proposed changes to Committee membership, structure, or
authority.</font></li></ul><p>
<b><u><font size="2">Meetings and Voting</font></u></b><p>
<font size="2">The Committee shall meet as often as necessary, but at least once annually.  The
affirmative vote of a majority of the members present at a meeting at which a
quorum is present shall constitute action of the Committee.</font><p>
<b><u><font size="2">Authority to Engage Independent Counsel and Advisors; Access</font></u></b><p>
<font size="2">In the process of discharging its duties, if a compensation consultant is needed
to assist in the evaluation of director, CEO or senior executive compensation,
the Committee shall have authority to retain and terminate the consulting firm,
including authority to approve the firm&#8217;s fees (which shall be paid by the
Company) and other retention terms. The Committee shall also have the right to
engage and determine funding for independent counsel and other advisors at the
expense of the Company. The Committee may seek any information it requires from
employees of the Company, all of whom shall be directed to cooperate with the
Committee's requests, and from external parties.</font><p>
<b><u><font size="2">Compensation</font></u></b><p>
<font size="2">Members of the Committee shall receive compensation for attending Committee
meetings as defined and approved by the Board of Directors.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5">
  <font size="2">-2-</font><hr size="3" color="#999999" STYLE="page-break-after: always">
  <font size="2">&nbsp; </font> </div><p>
<p align="center">
<font size="2">ANNEX 3</font><p align="center">
<font size="2">CHARTER OF THE NOMINATING AND GOVERNANCE COMMITTEE</font></p align="center">
<p align="center">
<font size="2">&nbsp;ADOPTED APRIL 7, 2004 </font>	</p>
<p align="center">&nbsp;</p>
<div align="center" color="#000080" style="position:relative; left: -5"><hr size="3" color="#999999" STYLE="page-break-after: always">
  <font size="2">&nbsp; </font> </div>
<p align="center"><b>
<font size="2">&nbsp;AMERICAN TECHNOLOGY CORPORATION<br>
BOARD OF DIRECTORS<br>
NOMINATING AND GOVERNANCE COMMITTEE CHARTER</font></b></p>
<p align="center">
<font size="2">(Approved April 7, 2004)
</font>	</p>
<p>
<b><u><font size="2">Organization</font></u></b><p>
<font size="2">There shall be a committee of the Board of Directors of American Technology
Corporation (the &#8220;Company&#8221;) to be known as the Nominating and
Governance Committee (the &#8220;Committee&#8221;).  The Board of Directors
shall appoint the members of the Committee, which will be composed of at least
three directors.  The Committee shall be composed entirely of directors that are
independent, as defined by the applicable rules and regulations of the
Securities and Exchange Commission and Nasdaq, and are free of any relationship
that, in the opinion of the Board of Directors, would interfere with their
exercise of independent judgment.  Unless the Board elects a Chair of the
Committee, the Committee shall elect a Chair by majority vote.</font><p>
<b><u><font size="2">Statement of Policy</font></u></b><p>
<font size="2">The primary purposes of the Committee are to:</font><ul>
<li>
<p style="margin-bottom: 12"><font size="2">Identify individuals qualified to become Board members.</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">Recommend the persons to be nominated by the Board for election as directors
at the annual meeting of stockholders.</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">Regularly review and advise the Board with respect to corporate governance
principles and policies applicable to the Company.</font></li>
<li><font size="2">Oversee the annual evaluation of the Board&#8217;s
effectiveness.</font></li></ul><p>
<font size="2">Except as otherwise required by applicable law, regulations or listing
standards, all major decisions are considered by the Board of Directors as a
whole.</font><p>
<b><u><font size="2">Responsibilities</font></u></b><p>
<font size="2">The Committee shall have the following responsibilities:</font><ul>
<li>
<p style="margin-bottom: 12"><font size="2">The Committee shall, with the assistance of legal counsel, review and assess
the adequacy of this charter annually, and present a report to the Board at the
Board&#8217;s annual organizational meeting of the results of its assessment,
including any recommendations for changes to this charter. </font> </li>
<li>
<p style="margin-bottom: 12"><font size="2">The Committee shall regularly address the issues of appointment and removal
of members of the Committee, qualification of Committee members, and Committee
structure and operation, and shall make recommendations to the Board concerning
any proposed changes to Committee membership, structure, or authority. </font> </li>
<li>
<p style="margin-bottom: 12"><font size="2">Except where the Company is legally required by contract or otherwise to
provide third parties with the ability to nominate directors, the Committee
shall have sole responsibility and authority for selecting the persons to be
nominated by the Board for election as directors at the annual meeting of
stockholders, and the sole responsibility for recommending the persons to be
nominated by the Board to fill any vacancies on the Board that the Board has
authority to fill. </font>  </li>
<li><font size="2">The Committee shall use the criteria and the principles set forth in the
Company&#8217;s Board Guidelines on Significant Corporate Governance Issues (the
&#8220;Governance Guidelines&#8221;) to guide its director selection process.
The Committee shall, from time to time as it deems appropriate, review and
reassess the adequacy of the Governance Guidelines, with assistance of legal
counsel, and recommend any proposed changes to the Board for approval. </font>
</li></ul>
<div align="center" color="#000080" style="position:relative; left: -5"><b></b><hr size="3" color="#999999" STYLE="page-break-after: always">
  <font size="2">&nbsp; </font> </div><ul>
<li>
<p style="margin-bottom: 12"><font size="2">The Committee shall conduct background checks on all director nominees and
shall have the sole authority to retain and terminate any search firm to be used
to identify director nominees, including sole authority to approve the search
firm&#8217;s fees and other retention terms.  The Committee is empowered,
without further action by the Board, to cause the Company to pay the
compensation of any search firm engaged by the Committee.</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">The Committee shall establish and oversee a policy for considering
shareholder nominees for directors, and shall develop the procedures that must
be followed by shareholders in submitting recommendations. </font>  </li>
<li>
<p style="margin-bottom: 12"><font size="2">The Committee shall evaluate director candidates recommended by the
shareholders using the criteria and the principles for director selection set
forth in the Governance Guidelines.</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">The Committee shall be responsible for recommending to the Board the
directors to be appointed to each committee.  The Committee shall also monitor
and recommend the functions of various committees.</font></li>
<li>
<p style="margin-bottom: 12"><font size="2">The Committee shall establish and oversee a procedure for shareholders to
communicate with the Board. </font> </li>
<li>
<p style="margin-bottom: 12"><font size="2">The Committee shall be responsible for overseeing an annual self-evaluation
of the Board to determine whether it is functioning effectively.  The Committee
shall determine the nature of the evaluation, supervise the conduct of the
evaluation and prepare an assessment of the Board&#8217;s performance, to be
discussed with the Board.  The Committee shall also evaluate its own performance
as a committee on an annual basis and report same to the Board.  The Committee
shall be responsible for reviewing with the Board, on an annual basis, the
requisite skills and criteria for new Board members as well as the composition
of the Board as a whole. </font> </li>
<li>
<p style="margin-bottom: 12"><font size="2">The Committee shall consider questions of conflict of interest of board
members and senior management, and, to the extent a conflict constitutes a
related party transaction (as that term is defined in SEC Regulation S-K, Item
404), refer the approval of such matter to the Audit Committee of the Board of
Directors.</font></li>
<li><font size="2">The Committee shall oversee director orientation and continuing education
programs, and shall also oversee director retirement policies and resignation of
directors from the
Board.</font></li></ul><p>
<b><u><font size="2">Meetings and Voting</font></u></b><p>
<font size="2">The Nominating and Governance Committee shall meet as often as necessary, but at
least once annually.  The affirmative vote of a majority of the members present
at a meeting at which a quorum is present shall constitute action of the
Committee.</font><p>
<b><u><font size="2">Authority to Engage Independent Counsel and Advisors</font></u></b><p>
<font size="2">The Committee shall have the right to engage and determine funding for
independent counsel and other advisors at the expense of the Company.</font><p>
<b><u><font size="2">Compensation</font></u></b><p>
<font size="2">Members of the Committee shall receive compensation for attending Committee
meetings as defined and approved by the Board of Directors.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5">
  <font size="2">-2-</font><hr size="3" color="#999999" STYLE="page-break-after: always">
  <font size="2">&nbsp; </font> </div>
<p align="center">
<font size="2">&nbsp;AMERICAN TECHNOLOGY CORPORATION</font></p>
<p align="center">
<font size="2">THIS PROXY RELATES TO AN ANNUAL MEETING OF THE STOCKHOLDERS TO BE HELD</font></p>
<p align="center">
<font size="2">MAY 27, 2004
</font>	</p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned hereby appoints ELWOOD G. NORRIS and CARL GRUENLER or either of
them, with full power of substitution, as attorneys and proxies to vote all
shares of Common Stock of American Technology Corporation which the undersigned
is entitled to vote at the Annual Meeting of Stockholders of AMERICAN TECHNOLOGY
CORPORATION (the "Company") to be held at 2:00 p.m. (local time) at the offices
of the Company, 13114 Evening Creek Drive South, San Diego, California 92128 on
May&nbsp;27, 2004 and any postponements, continuations and adjournments thereof,
with all powers which the undersigned would possess if personally present, upon
and in respect of the following matters and in accordance with the following
instructions, with discretionary authority as to any and all other matters that
may properly come before the meeting.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;UNLESS
A CONTRARY DIRECTION IS INDICATED, THIS PROXY WILL BE VOTED FOR ALL NOMINEES
LISTED IN PROPOSAL 1 AND FOR PROPOSALS 2, AS MORE SPECIFICALLY DESCRIBED IN THE
PROXY STATEMENT.  IF SPECIFIC INSTRUCTIONS ARE INDICATED, THIS PROXY WILL BE
VOTED IN ACCORDANCE THEREWITH.</font><p>
<font size="2">MANAGEMENT RECOMMENDS A VOTE FOR THE NOMINEES FOR DIRECTOR LISTED BELOW</font><p>
<font size="2">PROPOSAL 1:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To elect directors to serve for the
ensuing year and until their successors are elected. </font> </p>
<div style="position:relative; left: 48">
  <table border=0 cellpadding=0 cellspacing =0 width="540" >
<tr valign="top">
<td width="150" colspan="1" rowspan="1" >
<p>
</p>
</td>
<td width="34" rowspan="1" >
<p style="margin-top: 0">&nbsp;<font face="Wingdings" size="2">&#168;</font></td>
<td width="248" colspan="1" rowspan="1" >
<p style="margin-top: 3">
<font size="2">FOR all nominees listed below<br>
(except as marked to the contrary below).</font></p>
</td>
<td width="43" colspan="1" rowspan="1" >
<p>
</p>
</td>
<td width="44" rowspan="1" >
<p align="center">&nbsp;<font face="Wingdings" size="2">&#168;</font></td>
<td width="186" colspan="1" rowspan="1" >
<p style="margin-top: 3">
<font size="2">WITHHOLD AUTHORITY<br>
to vote for all nominees listed below.</font></p>
</td>
</tr>
</table></div>
<p>
<font size="2">Nominees:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Elwood G. Norris,  Kalani Jones, Richard
M. Wagner, David J. Carter and Daniel Hunter</font><p>
<font size="2">To withhold authority to vote for any nominee(s) write such nominee(s)' name(s)
below:</font></p>
<div style="position:relative; left: -5">
  <table border="1" style="border-collapse: collapse; border-left-width: 0; border-right-width: 0; border-top-width: 0" bordercolor="#111111" cellpadding="0" cellspacing="0">
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1" >
&nbsp;</td>
</tr>
</table></div>
<p>
<font size="2">PROPOSAL 2:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To ratify the selection of BDO Seidman,
LLP as independent auditors of the Company for the fiscal year ending
September&nbsp;30, 2004.</font></p align="center">
<p align="center">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font face="Wingdings" size="2">&#168;</font>&nbsp;&nbsp;&nbsp;FOR&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;<font face="Wingdings" size="2">&#168;</font>&nbsp;&nbsp; AGAINST&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;<font face="Wingdings" size="2">&#168;</font>&nbsp;&nbsp; ABSTAIN</font></p>
<p align="center"><i>
<font size="2">(Continued and to be signed on the other side)
</font>	</i></p>
<div align="center" color="#000080" style="position:relative; left: -5"><hr size="3" color="#999999" STYLE="page-break-after: always">
  <font size="2">&nbsp; </font> </div><font size="2">&nbsp; </font>
<p align="center">
<i><font size="2">(Continued from other side)</font></i><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
proxy has been solicited by or for the benefit of the Board of Directors of the
Company. I understand that I may revoke this proxy only by written instructions
to that effect, signed and dated by me, which must be actually received by the
Company prior to commencement of the Annual Meeting.</font></p>
<div style="position:relative; left: 0">
  <table border=0 cellpadding=0 cellspacing =0 style="border-collapse: collapse" bordercolor="#111111" width="661" >
<tr valign="top">
<td width="276" colspan="1" rowspan="1" >
<p>
<font size="2"><br>
DATED:  _______________________, 2004</font></p>
</td>
<td width="72" colspan="1" rowspan="1" >
<p>
<font size="2"><br>
Signature</font></p>
</td>
<td width="313" colspan="1" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="276" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="72" colspan="1" rowspan="1" >
<p>
<font size="2"><br>
Print Name</font></p>
</td>
<td width="313" colspan="1" rowspan="1" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="661" colspan="3" rowspan="1" >
<p>
<font size="2"><br>
IF THE STOCK IS HELD JOINTLY, BOTH OWNERS MUST SIGN</font></p>
</td>
</tr>
<tr valign="top">
<td width="276" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="72" colspan="1" rowspan="1" >
<p>
<font size="2"><br>
Signature </font> </p>
</td>
<td width="313" colspan="1" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="276" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="72" colspan="1" rowspan="1" >
<p>
<font size="2"><br>
Print Name </font> </p>
</td>
<td width="313" colspan="1" rowspan="1" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" >
&nbsp;</td>
</tr>
</table></div>
<p>
<font size="2">(Please date and sign exactly as name or names appear on your stock
certificate(s).  When signing as attorney, executor, administrator, trustee or
guardian, please give full title as such.  If a corporation, please sign in full
the corporate name by President or other authorized officer.  If a partnership,
please sign in the partnership name by authorized person. IF THE STOCK IS HELD
JOINTLY, BOTH OWNERS MUST SIGN.)</font></p align="center">
<p align="center">
<font size="2">&nbsp;Mail or Deliver this Proxy to:<br>
AMERICAN TECHNOLOGY CORPORATION<br>
13114 Evening Creek Drive South<br>
San Diego, California 92128<br>
(858) 679-2114</font></p>
<p align="center">
<font size="2"><font face="Wingdings" size="6">&#168;</font>&nbsp;&nbsp;&nbsp; I will be attending the meeting<br>
&nbsp;</font></p>
<p align="center">
<font size="2">-2-</font></p>
<p align="left">
&nbsp;</p>


</body>

</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>2
<FILENAME>image002.jpg
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 image002.jpg
M_]C_X``02D9)1@`!`0$`8`!@``#__@`<4V]F='=A<F4Z($UI8W)O<V]F="!/
M9F9I8V7_VP!#``H'!P@'!@H("`@+"@H+#A@0#@T-#AT5%A$8(Q\E)"(?(B$F
M*S<O)BDT*2$B,$$Q-#D[/CX^)2Y$24,\2#<]/CO_VP!#`0H+"PX-#AP0$!P[
M*"(H.SL[.SL[.SL[.SL[.SL[.SL[.SL[.SL[.SL[.SL[.SL[.SL[.SL[.SL[
M.SL[.SL[.SO_P``1"``R`+\#`2(``A$!`Q$!_\0`&P`!``(#`0$`````````
M``````,%`00&`@?_Q``T$``!`P,$``0%`@4%`0`````!`@,$``41!A(A,1-!
M46$'%!4B<8&1%B,RH;$E0E*"DL'_Q``9`0$``P$!`````````````````0(#
M!`7_Q``C$0$!``$"!@(#`````````````1$",0,A46%Q@4'1$B+!_]T`!``H
M_]H`#`,!``(1`Q$`/P#[-59'O]MFW63:H\D+F1@2XWM(Q^N,'L567>=(NLU%
MNT_J&+%F1UDR&E("U$#R_3S'^*WIDAYN>W!9@/E4IHARX,)3ADXXSGS\_P!J
MI^71TS@R3]M[/&.]S.<QMAFW/7%II3-]D042'G%)CB.HIW)]MW9_%9LP8A_,
M6M$N;*=CJW..2]RC]W(`40`1^*UXXCI<B0E_ZS+B+*5REAM2XRB,@J\TYZXY
MXJR89G'P')4EL+2E0>;91]BR>B">1BHB>)B9[^O'+?;QNU+88=MLRW6(LQAD
M+4LM.I6IW.>>#D\^7M6W$99@I#'S#BU.K4M(?=*EG/)`SS@>GE7MN,\VED&6
MXOPR=Y4$Y<SG&>.,>WI64%`<0A];)?Y*`.#CV!YZ[JTF&6O5FWGNS%3)2P!*
M<;6[DY4VDI&,\<$GRJ>E*LSMS<E*5#'EQIB%+BR&GTI44*4VL*`4.P<>=$)J
M4K%!FE:_U"%NV_-L9SC'B#O]ZGH,TK7FSX=MC&3.E,Q6`0"X\L(2">N34Z5)
M6D*20I*AD$=$4&:4J&5*CPHZY,I]MAEL96XXH)2D>Y/5!-2HV'V93"'X[J'6
MG$A2'$'*5`]$'S%24"E*4"E*4'(:83*?O<Z9.THU:WB"1)!RI9)Y'OGU%2::
MC.,O7B4JT?(S'7"2CYWQ?$/)'KLY/]_:H[JS$TM>%ZEGW6XK:>5L$5.5H!(Z
MQZ#'%;;4$Q[BS=[)"B(9GCQ9SSQ6EPI/W92GR/)/YK#3,7'1ZO$U35INJ;:I
M.N,SG9SOWV3Z26EVRH?+H>><6KQEEY+IW`]%:0,X%7M4-N=;G+^IV*:F1&?=
M"7D.E0;0E/!\-.!A1]^ZL6;CO#(>BR([CRU)2A:-V,9Y)3D`$#C)K33<1Q<?
M3;Q+9/7S.WINU\7OVHF1K][485)/TF>S#;*65EKY<!27\K`V@[E^9\J^OIFM
M.I0IOQ%)6X6\AM7!&<YXX''?5:$?3EI38G[+].2W`>4OQ&%+)WY5DDG.>3SW
M5V%EF[@[KJW53-QN+D.YQ41HMZ;M[;*XH5N2X."59!X_OZT5K74;#:[0Y*+\
MU-Y=@_.QX:5++:$!7VM9QN/7XKN1H^P!E37T])0N0B2K*U'+B!A*N_("DG1U
M@F,2F7[<A:)<GYIW[E`^-C&\$'*3^,40Y&'J'64ZYV&U/NHMDF4V^J47X@W+
M2VH;5!.?M*D\=X&3[5IVO45U=<AV6UKA6IRY7>:A4I$5&$(:P<!/`4M6>S7?
MPM,6>WNPWHL,(<A(6AA1<4HI"SE7)/.3ZU!(T5IV5;U07K8A3!D*D@;U!275
M=J"@<@_@T'(:FU;>K+(<^2NKLTVLQVIR?IZ$LE2B`=RRK(*LY`0#BO+VK-3,
MW1^7\^PJ!'U$+7\H8PW+;4>ROO(SQ_>NJ=^'VE7EA3EI0H[$(/\`,7R$\))Y
MY(QV>:W5Z6LJT.)5!20Y-$Y8W*Y?'^_OOVZH/DUYT[8[;\5YC:;8EV+&M;D_
MY?Q%86ZE)7G.<\D58Z?U]J]3/U:7&?GV]V$^^LF$&FF7$!12$+!^Y/V@'//-
M=E*59T:CN=Z<M2%RK='4TZ^7OYBT[`K:&^BG"L9/O5&RQIC39D7>)IEL2VG?
M`6AB2IUL)6T5DI[3_2,$8'[<T'*Z@N-_OGPGD7N[WF-+9F.-EN&TRE)8(<QV
M.3P.O>MB5KK5UCA7^"_<([LBVMQ5L/(CI`0%E.4X(Y&%>?I71/:?T?"?O+`T
MHHQ6F`Z^ZVZK8H@)6$=X3_5Y'R/E7N[M:;^5GRYFG$2'I#Z(TQ+,E2DK"&PX
MDA0]`!Y#&.3CF@H'?B'JNQ_Q%'GR(TV1#BL/,+2R$I:4Z4>0[`#GGYBM:ZZH
MOK]JO^GKQ/:N2%6AN:W(;9#9;)*#M.."/N[]AZUW#D?3#FJI]M1:&GIDR$&G
MEN.'8]M2DAH]@$)2DY'I[5IP;3I:V:<?QIM##-P@KD/MI?4XI3:5)PG>>1_4
M#Y`8H.7;U;J%J'%M-HN+%M8M.G69RE.,I69)#:#MYZ'W8X]#4[OQ&U-=9,)$
M*5%M>RSJGO>*R%I?6D*R!GH';QCW[JZO$/23\.*JZZ;0Z+>Z(66)!4&FDM%P
M'<,%:0.P>1S6=2Z-G:ICVV59X-C:BF`A#0EMK\2,",_:4\$`$8!'!YH*)CXD
M:BMMLLM[NDM#\"XQ)*5@,)&U]!4$\@>?V?WKZ'HRXSI6E[>_?)C2[C):#RTX
M2@A*CE(VCVQ7+7'X8W&78;'IEN=$-I@J#DIQ;:O&6YN45;/(`A1'==S)L%JF
M/,/R(3:W(^SPE<C9MSM_;)H+*E*4'E20H8(!'H158JV3CJ`7`7=X1`C:86P;
M"<=Y_/-6M*BS*VG7=.<?*B2$7R4[$E6R;#;@OA;3I7X:7B,\C:>1Y\^M;$&6
MS<+G)>B742&6!X+D5"1AMP'O/>?+TJTKPAEMHJ+;:$%9RHI3C)]348:7B2RS
M'C^[]6G$*WVI;/U-M]T.*2%LI2%,9Z21SR/>D9R',7X0D"2]`6$K5T4KVXYQ
M@9P?Q6TQ$CQE.*88;:4ZK>X4(`*U>I]34N*G"MU3GCZ0QG7G4K\:.6"E92D%
M05N2.E<=9]*GI2I4I2E*(*Q6:Q01F,PI_P`<LMEW;M\0H&['IGTK#<.,TT&F
MX[2&P20A*`!D\'C]:H[E-E?57(\>2?NV)1L/VM'<-V\8SDC)'/K47\3R"MM'
MAL-;TI"E.)4`VHXSYY(QG'5!T@9;2DI#:0E0P0$C!XQ_BHT0XK;0:1':0V,X
M0E``&>^*H$7Z>`IXQ1@%.]L[B<]83Z=*-3&\RE6Q4D+C@B4&@XE*B@IX*O\`
MZ*"\##2<8;0,*W#"1WUG\T\!H``-HP$[0-HX'I^*Y^#=KDEV/!<:0XLD;G%$
MC<"$DCD]C<?VZK*KM)CW*4DE*PXYL82H*P`E02>/_1/X%!>(AQFV@TW':0VG
M.$)0`!G@\?J:E2E*$A*0$I2,``8`%<W&U!-<;98PP[)<*1G:H`!03R1^58_Z
MFMEB]RG+>]*<9:;2'$H02>$Y."5#.1CORH+VE<ZU<YWR\RXNA`\)M"&VE$I3
MD\DX)[((Q^U/XC>0YEQML,Y(62A04WC_`)>ZL'`_%!T5*YHZAG(2%.LL-I6D
MD*4E6$8SWZY*2!^E;;-Y;@Q([,U,A3Y;25*#95N5M!//ZT%U2E*!2E*!2E*!
M2E*#_]#[-2E*!2E*!6M(2#*B$@'"U$9\OM-*4&+D<6V21V&U?XKS:4I3;(^U
9(&49.!V3V:4H-RE*4"E*4"E*4"E*4'__V3\_
`
end

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>3
<FILENAME>perf_graph.jpg
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 perf_graph.jpg
M_]C_X``02D9)1@`!`0$!+`$L``#_VP!#``@&!@<&!0@'!P<)"0@*#!0-#`L+
M#!D2$P\4'1H?'AT:'!P@)"XG("(L(QP<*#<I+#`Q-#0T'R<Y/3@R/"XS-#+_
MVP!#`0D)"0P+#!@-#1@R(1PA,C(R,C(R,C(R,C(R,C(R,C(R,C(R,C(R,C(R
M,C(R,C(R,C(R,C(R,C(R,C(R,C(R,C+_P``1"`#>`9P#`2(``A$!`Q$!_\0`
M'P```04!`0$!`0$```````````$"`P0%!@<("0H+_\0`M1```@$#`P($`P4%
M!`0```%]`0(#``01!1(A,4$&$U%A!R)Q%#*!D:$((T*QP152T?`D,V)R@@D*
M%A<8&1HE)B<H*2HT-38W.#DZ0T1%1D=(24I35%565UA96F-D969G:&EJ<W1U
M=G=X>7J#A(6&AXB)BI*3E)66EYB9FJ*CI*6FIZBIJK*SM+6VM[BYNL+#Q,7&
MQ\C)RM+3U-76U]C9VN'BX^3EYN?HZ>KQ\O/T]?;W^/GZ_\0`'P$``P$!`0$!
M`0$!`0````````$"`P0%!@<("0H+_\0`M1$``@$"!`0#!`<%!`0``0)W``$"
M`Q$$!2$Q!A)!40=A<1,B,H$(%$*1H;'!"2,S4O`58G+1"A8D-.$E\1<8&1HF
M)R@I*C4V-S@Y.D-$149'2$E*4U155E=865IC9&5F9VAI:G-T=79W>'EZ@H.$
MA8:'B(F*DI.4E9:7F)F:HJ.DI::GJ*FJLK.TM;:WN+FZPL/$Q<;'R,G*TM/4
MU=;7V-G:XN/DY>;GZ.GJ\O/T]?;W^/GZ_]H`#`,!``(1`Q$`/P#U>Z34M3\9
M7UA!KM]IUK:Z?:S*EI%;G<\DEP&),L3GI$O3'>K'_"/:I_T.>N?]^;+_`.1Z
M+/\`Y*'K/_8*L/\`T;=UT%`'/_\`"/:I_P!#GKG_`'YLO_D>C_A'M4_Z'/7/
M^_-E_P#(]=!10!S_`/PCVJ?]#GKG_?FR_P#D>C_A'M4_Z'/7/^_-E_\`(]=!
M10!S_P#PCVJ?]#GKG_?FR_\`D>C_`(1[5/\`H<]<_P"_-E_\CUT%%`'/_P#"
M/:I_T.>N?]^;+_Y'H_X1[5/^ASUS_OS9?_(]=!10!S__``CVJ?\`0YZY_P!^
M;+_Y'H_X1[5/^ASUS_OS9?\`R/7044`<_P#\(]JG_0YZY_WYLO\`Y'H_X1[5
M/^ASUS_OS9?_`"/7044`<_\`\(]JG_0YZY_WYLO_`)'H_P"$>U3_`*'/7/\`
MOS9?_(]=!10!S_\`PCVJ?]#GKG_?FR_^1Z/^$>U3_H<]<_[\V7_R/7044`<_
M_P`(]JG_`$.>N?\`?FR_^1Z/^$>U3_H<]<_[\V7_`,CUT%%`'/\`_"/:I_T.
M>N?]^;+_`.1Z/^$>U3_H<]<_[\V7_P`CUT%<WXDT;6M1O[6\TC59+)[2RO%C
MC$I$<ES(BK"TB;2'1/G;D9!VX!Y%`$G_``CVJ?\`0YZY_P!^;+_Y'H_X1[5/
M^ASUS_OS9?\`R/7+W7A?XBZAI<"W7C""*^MY5FB-BGD(S+;8`D.UMZ_:`I*X
M"E2Y(Y1(Y)]'^*$VFRE/$6FP7@N"(8XPI40^5M!DD:`[G\P*Q"QH#F3D!D$8
M!TG_``CVJ?\`0YZY_P!^;+_Y'H_X1[5/^ASUS_OS9?\`R/7)W6E?%R5V%OK>
MC01%,#]Z'=6"N%(8VN,',;.-O)0[3&&VKN:#IWCFWU;3I-9UFQGL(]/,=["J
M!WENO,8[T98X]J[2O7.,$8)_>4`:'_"/:I_T.>N?]^;+_P"1Z/\`A'M4_P"A
MSUS_`+\V7_R/6/8Z!XPMY]@U>"!7EC^TW9N9KJ2X4),)'6*4>7`S,T+*B#:I
M!SO4!#S]QH_Q;N[K[))K4$4,4L,T<\$T2))$LKLT<C^1O\['E`%8A$5#;@22
M"`=Q_P`(]JG_`$.>N?\`?FR_^1Z/^$>U3_H<]<_[\V7_`,CUJ:3'?0Z-8Q:I
M-'/J"6\:W4L8PKRA1O8<#@MD]!]!5R@#G_\`A'M4_P"ASUS_`+\V7_R/1_PC
MVJ?]#GKG_?FR_P#D>N@HH`Y__A'M4_Z'/7/^_-E_\CT?\(]JG_0YZY_WYLO_
M`)'KH**`.?\`^$>U3_H<]<_[\V7_`,CT?\(]JG_0YZY_WYLO_D>N@HH`Y_\`
MX1[5/^ASUS_OS9?_`"/1_P`(]JG_`$.>N?\`?FR_^1ZZ"B@#G_\`A'M4_P"A
MSUS_`+\V7_R/1_PCVJ?]#GKG_?FR_P#D>N@HH`Y__A'M4_Z'/7/^_-E_\CT?
M\(]JG_0YZY_WYLO_`)'KH**`.?\`^$>U3_H<]<_[\V7_`,CT?\(]JG_0YZY_
MWYLO_D>N@HH`Y_\`X1[5/^ASUS_OS9?_`"/1_P`(]JG_`$.>N?\`?FR_^1ZZ
M"B@#G_\`A'M4_P"ASUS_`+\V7_R/1_PCVJ?]#GKG_?FR_P#D>N@HH`Y__A'M
M4_Z'/7/^_-E_\CT?\(]JG_0YZY_WYLO_`)'KH**`.?\`^$>U3_H<]<_[\V7_
M`,CU8\)WUQJ?@W0[^\D\RZNM/MYIGV@;G:-2QP.!DD]*V*Y_P)_R3SPU_P!@
MJU_]%+0`6?\`R4/6?^P58?\`HV[KH*Y^S_Y*'K/_`&"K#_T;=T>,O%EGX,\/
M2ZK=IYK<I!!O">=($9PNYN%X1CZG&`&8A2`=!17#WWQ*L[+[?NT^=OLLK@8<
M?/'']I\QO9O]"N-J\@_NLLNYMFAX@\;V?AW4Y+6ZM9Y(XK0W,LD1!(_=SR*J
MJ2,Y6UFR21@[!R&)4`ZBBL_1=3_M?3!=&'R9%EEMY8PVX+)%(T;[6P,KN1L$
M@$C!(!X$DFK:;#JD.ERZA:)J$R;XK1IE$KKSRJ9R1\K<@=CZ4`7****`"BBB
M@`HHHH`****`"BBB@`HHHH`****`"BBB@`HHHH`****`"BBB@`HHHH`****`
M"BBB@`HHHH`****`"BBB@`HHHH`****`"BBB@`HHHH`****`"N?\"?\`)//#
M7_8*M?\`T4M=!7/^!/\`DGGAK_L%6O\`Z*6@`L_^2AZS_P!@JP_]&W=;D\$-
MU;RV]Q%'-!*A22.10RNI&""#P01QBL.S_P"2AZS_`-@JP_\`1MW704`8\WA/
MPW<?://\/Z5+]IE$\^^RC;S9!NP[9'S-\[<GGYCZFK%YH6CZA>"\O=*L;FZ$
M30"::W1W$;`ADW$9VD,P(Z'<?6M"B@"O8V%GIEG'9V%I!:6L>=D,$8C1<DDX
M4<#))/XUC^(?^0YX3_["LG_I%=5T%<_XA_Y#GA/_`+"LG_I%=4`=!1110`44
M44`%%%%`!1110`4444`%%%%`!1110`4444`%%%4M0U>QTKR_ML_E>9G9\C-G
M&,]`?4548RD[15V14J0IQ<YM)+J]"[13(9H[B".:)MT<BAU.,9!&13ZEJVC*
M335T%%%%`PHHHH`****`"BBB@`HHHH`****`"BBB@`HHHH`****`"BBB@`HH
MHH`****`"N?\"?\`)//#7_8*M?\`T4M=!7/^!/\`DGGAK_L%6O\`Z*6@`L_^
M2AZS_P!@JP_]&W=2>+;#4M3\/RV>E16CW,CJ0;J=HE3:=P8%49LAE7[NUAR5
M=&`(CL_^2AZS_P!@JP_]&W==!0!YOKO@CQ!>-J\^F36,$U[=^8J27#`X6*=4
ME:98MY99)(I%C;<(S"-C@;0NAXK\->)-5UY[O2+Z"VA.GO;QRM=21R12&*Y7
MY0J'Y6>6W<G<#FW4X)5<=Q10!C^%]/O-+T&*TOA`DRRS,L5O(7CAC:5VCC0E
M5^5$*H!M``7`&`*Q_%\.L2>(/"QL+ZQ@C.H.$6>S>4K)]DN26)$JY7;D;<`Y
MYW$?+785S_B'_D.>$_\`L*R?^D5U0`?8_&'_`$'=#_\`!--_\E4?8_&'_0=T
M/_P33?\`R57044`<_P#8_&'_`$'=#_\`!--_\E4?8_&'_0=T/_P33?\`R570
M44`<_P#8_&'_`$'=#_\`!--_\E4?8_&'_0=T/_P33?\`R57044`<_P#8_&'_
M`$'=#_\`!--_\E4?8_&'_0=T/_P33?\`R57044`<_P#8_&'_`$'=#_\`!--_
M\E4?8_&'_0=T/_P33?\`R57044`<_P#8_&'_`$'=#_\`!--_\E4?8_&'_0=T
M/_P33?\`R57044`<_P#8_&'_`$'=#_\`!--_\E4?8_&'_0=T/_P33?\`R570
M44`<_P#8_&'_`$'=#_\`!--_\E4?8_&'_0=T/_P33?\`R57044`<_P#8_&'_
M`$'=#_\`!--_\E5F7.B:_KR(]UJFC2)$^8)1I<RJZD$-\HN<D$["&R/NG@@@
MGIO^0E_UY?\`H_\`^P_]"_W?O7:UC)TW=.S_`"_X/];[<\X1Q"Y9*\/S_P"!
M^?IORUG:^*HT^Q1:SHT?V1$BQ)I,K%@%&'S]I'!P>W!!&3C)L_8_&'_0=T/_
M`,$TW_R56I>HR/#=QJ6>$D,JC):-L;@/I@-P,G;@=:M(ZR(KHP9&`*LIR"/4
M5,]?>[_F52]W]V^FWI_6GX]3!^Q^,/\`H.Z'_P"":;_Y*H^Q^,/^@[H?_@FF
M_P#DJN@HJ#8Y_P"Q^,/^@[H?_@FF_P#DJC['XP_Z#NA_^":;_P"2JZ"B@#G_
M`+'XP_Z#NA_^":;_`.2J/L?C#_H.Z'_X)IO_`)*KH**`.?\`L?C#_H.Z'_X)
MIO\`Y*H^Q^,/^@[H?_@FF_\`DJN@HH`Y_P"Q^,/^@[H?_@FF_P#DJC['XP_Z
M#NA_^":;_P"2JZ"B@#G_`+'XP_Z#NA_^":;_`.2J/L?C#_H.Z'_X)IO_`)*K
MH**`.?\`L?C#_H.Z'_X)IO\`Y*H^Q^,/^@[H?_@FF_\`DJN@HH`Y_P"Q^,/^
M@[H?_@FF_P#DJC['XP_Z#NA_^":;_P"2JZ"B@#G_`+'XP_Z#NA_^":;_`.2J
M/L?C#_H.Z'_X)IO_`)*KH**`.?\`L?C#_H.Z'_X)IO\`Y*H^Q^,/^@[H?_@F
MF_\`DJN@HH`Y_P"Q^,/^@[H?_@FF_P#DJC['XP_Z#NA_^":;_P"2JZ"B@#G_
M`+'XP_Z#NA_^":;_`.2JV+%+R.SC6_G@GNAG?)!"8D;DXPI9B.,?Q'UXZ58H
MH`*Y_P`"?\D\\-?]@JU_]%+705S_`($_Y)YX:_[!5K_Z*6@`L_\`DH>L_P#8
M*L/_`$;=U)XM\0P^&/#\NI2W-I"4=0@NG"K)SEE'(.=H8_*&88)".1L:.S_Y
M*'K/_8*L/_1MW704`>7ZG\6?[/\`[6_=6)^PW;Q?-/C;L^U_NG_Z:2?8_E/&
M/M*?*VS]YL>*_B!_PC.O/I_V>"?R]/>\\IIMDDN(KF3*]<*OV7:>#S.IR-N'
M[BB@#'\+ZS_;^@Q:AO@DS+-#YMN<QS>5*\?F)R<*VS<!DX#8R<9./XOUFUT_
MQ!X6CFBOG9-0>8F"PGF!4VERN`40@MD_='S`<XQS785S_B'_`)#GA/\`["LG
M_I%=4`'_``F6E_\`/KKG_@BO?_C-'_"9:7_SZZY_X(KW_P",UT%%`'/_`/"9
M:7_SZZY_X(KW_P",T?\`"9:7_P`^NN?^"*]_^,UT%%`'/_\`"9:7_P`^NN?^
M"*]_^,T?\)EI?_/KKG_@BO?_`(S7044`<_\`\)EI?_/KKG_@BO?_`(S1_P`)
MEI?_`#ZZY_X(KW_XS7044`<__P`)EI?_`#ZZY_X(KW_XS1_PF6E_\^NN?^"*
M]_\`C-=!10!S_P#PF6E_\^NN?^"*]_\`C-'_``F6E_\`/KKG_@BO?_C-=!10
M!S__``F6E_\`/KKG_@BO?_C-'_"9:7_SZZY_X(KW_P",UT%%`'/_`/"9:7_S
MZZY_X(KW_P",U6F\6:==.$>VUDV917^31;QQ.&4,.5B(VX/(ZDY!P`0VY_R$
M693_`,>:,48=YF!P0?\`9!!!'\6/[OWKM7\'K^7_``?R]=L?XO\`A_/_`('Y
M^F_/_P#"9:7_`,^NN?\`@BO?_C-'_"9:7_SZZY_X(KW_`.,UT%%0;'/_`/"9
M:7_SZZY_X(KW_P",U6LO%FG6PE@-MK(B1\P#^Q;S=L/.`OE9PIR.!@`H,Y-=
M35>\@:9(VB($T+B2,MTST(/U4L,X.,YZBK@^CZF51/2<=U^75?Y>=C'_`.$R
MTO\`Y]=<_P#!%>__`!FC_A,M+_Y]=<_\$5[_`/&:V[:=;JW29`0'&=K=5/<'
MT(/!'8BI:EJSLS2+4E='/_\`"9:7_P`^NN?^"*]_^,T?\)EI?_/KKG_@BO?_
M`(S7044AG/\`_"9:7_SZZY_X(KW_`.,T?\)EI?\`SZZY_P""*]_^,UT%%`'/
M_P#"9:7_`,^NN?\`@BO?_C-'_"9:7_SZZY_X(KW_`.,UT%%`'/\`_"9:7_SZ
MZY_X(KW_`.,T?\)EI?\`SZZY_P""*]_^,UT%%`'/_P#"9:7_`,^NN?\`@BO?
M_C-'_"9:7_SZZY_X(KW_`.,UT%%`'/\`_"9:7_SZZY_X(KW_`.,T?\)EI?\`
MSZZY_P""*]_^,UT%%`'/_P#"9:7_`,^NN?\`@BO?_C-'_"9:7_SZZY_X(KW_
M`.,UT%%`'/\`_"9:7_SZZY_X(KW_`.,T?\)EI?\`SZZY_P""*]_^,UT%%`'/
M_P#"9:7_`,^NN?\`@BO?_C-'_"9:7_SZZY_X(KW_`.,UT%%`'/\`_"9:7_SZ
MZY_X(KW_`.,T?\)EI?\`SZZY_P""*]_^,UT%%`'/_P#"9:7_`,^NN?\`@BO?
M_C-;%C>Q:A9QW4*3I&^<">!X7&"1RC@,.G<<]>E6**`"N?\``G_)//#7_8*M
M?_12UT%<_P"!/^2>>&O^P5:_^BEH`+/_`)*'K/\`V"K#_P!&W=;DT\-L@>>6
M.)"ZH&=@H+,P51SW+$`#N2!6'9_\E#UG_L%6'_HV[JQXGT/_`(2'0YM/62"*
M23A99H/."J?ED&-RD;HVDC)5E8!S@@T`7#JVFBXN+<ZA:>?;O$D\?G+NB:0@
M1AAG(+$@*#USQFK!GA6X2W:6,3NC.D98;F52`Q`ZD`LH)[;AZUP^N_#RYUB&
M_6/6H[4W5Q)(L2VSM!$CPSQ-B,RX$K"X9F=2H9E4E,[B;'BKP)-XEU::[758
M[:":R-J\1M2[;O)NHE<-O`P!=L2N.=@Y&:`.P@GANK>*XMY8YH)4#QR1L&5U
M(R""."".<UA^(?\`D.>$_P#L*R?^D5U5SP_I4VC:3]DN+F.YG:XN+B26.(Q*
M6EF>4@*68@`OCJ>E8?B_3KJ[\0>%GAUF^LE;4'C"0)`0C"TN6WC?&QW$?+R2
MN#TSS0!V%%<__P`(]JG_`$.>N?\`?FR_^1Z/^$>U3_H<]<_[\V7_`,CT`=!1
M7/\`_"/:I_T.>N?]^;+_`.1Z/^$>U3_H<]<_[\V7_P`CT`=!17/_`/"/:I_T
M.>N?]^;+_P"1Z/\`A'M4_P"ASUS_`+\V7_R/0!T%%<__`,(]JG_0YZY_WYLO
M_D>C_A'M4_Z'/7/^_-E_\CT`=!17/_\`"/:I_P!#GKG_`'YLO_D>C_A'M4_Z
M'/7/^_-E_P#(]`'045S_`/PCVJ?]#GKG_?FR_P#D>C_A'M4_Z'/7/^_-E_\`
M(]`'053=VO':&%BL"DK+*IP2>Z*?YMVZ#G)7$31=4GG>-/%VM/;A7CD<QV@R
MQ!&$*P`Y4G.<X!&.><2IX;U&-%1/&&MJB@!56"Q``]!_H]7\/J8M^TT6WYG0
M(BQHJ(H5%`"JHP`/04ZN?_X1[5/^ASUS_OS9?_(]'_"/:I_T.>N?]^;+_P"1
MZ@V2L=!17/\`_"/:I_T.>N?]^;+_`.1Z/^$>U3_H<]<_[\V7_P`CT`=!17/_
M`/"/:I_T.>N?]^;+_P"1Z/\`A'M4_P"ASUS_`+\V7_R/0!IK_H=^(_\`EC=,
MS+_L28R0!Z,`S?4-R=PJ[7/'PU?NT?G>+=:F1)$D\MHK,!BK!@#BW!QD#H:@
MLM%U:XMP9?&6MK.A*2J(;(`..N/]'S@]1GL0>]6_>7,8P]R7)T>J_5?K_P`,
M=117/_\`"/:I_P!#GKG_`'YLO_D>C_A'M4_Z'/7/^_-E_P#(]0;'045S_P#P
MCVJ?]#GKG_?FR_\`D>C_`(1[5/\`H<]<_P"_-E_\CT`=!17/_P#"/:I_T.>N
M?]^;+_Y'H_X1[5/^ASUS_OS9?_(]`'045S__``CVJ?\`0YZY_P!^;+_Y'H_X
M1[5/^ASUS_OS9?\`R/0!T%%<_P#\(]JG_0YZY_WYLO\`Y'H_X1[5/^ASUS_O
MS9?_`"/0!T%%<_\`\(]JG_0YZY_WYLO_`)'H_P"$>U3_`*'/7/\`OS9?_(]`
M'045S_\`PCVJ?]#GKG_?FR_^1Z/^$>U3_H<]<_[\V7_R/0!T%%<__P`(]JG_
M`$.>N?\`?FR_^1Z/^$>U3_H<]<_[\V7_`,CT`=!17/\`_"/:I_T.>N?]^;+_
M`.1Z/^$>U3_H<]<_[\V7_P`CT`=!17/_`/"/:I_T.>N?]^;+_P"1Z/\`A'M4
M_P"ASUS_`+\V7_R/0!T%%<__`,(]JG_0YZY_WYLO_D>MBQMY;2SC@FO9[V1<
MYGG"!WR2>0BJO'3@#IZ\T`6*Y_P)_P`D\\-?]@JU_P#12UT%<_X$_P"2>>&O
M^P5:_P#HI:`"S_Y*'K/_`&"K#_T;=UT%<_9_\E#UG_L%6'_HV[J3Q;K<WA[P
M_+JD7V3$+KO^U2%%.3A5#=`68JFYB%3>7.0NT@&Y17E^I_%G^S_[6_=6)^PW
M;Q?-/C;L^U_NG_Z:2?8_E/&/M*?*VS]YL>*_B!_PC.O/I_V>"?R]/>\\IIMD
MDN(KF3*]<*OV7:>#S.IR-N'`.XKG_$/_`"'/"?\`V%9/_2*ZJQX7UG^W]!BU
M#?!)F6:'S;<YCF\J5X_,3DX5MFX#)P&QDXR<?Q?K-KI_B#PM'-%?.R:@\Q,%
MA/,"IM+E<`HA!;)^Z/F`YQCF@#L**Y__`(3+2_\`GUUS_P`$5[_\9H_X3+2_
M^?77/_!%>_\`QF@#H**Y_P#X3+2_^?77/_!%>_\`QFC_`(3+2_\`GUUS_P`$
M5[_\9H`Z"BN?_P"$RTO_`)]=<_\`!%>__&:/^$RTO_GUUS_P17O_`,9H`Z"B
MN?\`^$RTO_GUUS_P17O_`,9H_P"$RTO_`)]=<_\`!%>__&:`.@HKG_\`A,M+
M_P"?77/_``17O_QFC_A,M+_Y]=<_\$5[_P#&:`.@JF[M>.T,+%8%)6653@D]
MT4_S;MT'.2O(7WC:YDU-8+;3M4?3)3$WVF+1[LL8V"LQ!"<'!(X&1[&ME/%^
MDQHJ)9ZVJ*`%5=!O0`/0?N:VE#V:3;U?X>OF<L*OMVTDTEW5K^G=>9T"(L:*
MB*%10`JJ,`#T%.KG_P#A,M+_`.?77/\`P17O_P`9H_X3+2_^?77/_!%>_P#Q
MFL3J2L=!17-7'CO1+2!I[F/6(85QNDDT2]51DX&28O6H;KQU:IY'V+2M9NUG
MB6:.X72[GR<'IN98V8''HIZCIU%QIRDKK8TC2G)72T[[+[SJZR-?\1V.@6,T
MT\L;W"(&2U$JB23)P,`\XSU.#P#UQ6'_`,)%;W?S7TOB%%/6WM-#OHT`Z@%_
M)WD@]P5!P/E'(,=W=>$[ZU2VN-)UQH5<R;1HVH+O<C!=B(QO;`^\V3UYY-:T
ME1C->U;:ZV_X-OZZFU&.'A47MFVNMO\`-V_KJ=E;7$5W:PW,#;X9D$B-@C*D
M9!P?:I:XBWUS2]$@5=(M?$/V:/)-BVBWK*V3DE&:+*MZ`G:>>`3N&L/&FDL7
M"0ZRX1V0M'HEXPW*2",B+!P01^%9U(Q3O!W7];F56$4W*F[Q_'Y^?X'0U2F_
MT.\6X'^JG98I1V5NBM]22JG_`(#T"\YG_"9:7_SZZY_X(KW_`.,TR;Q9I%Q!
M)#+9ZXT<BE&']A7PR",'_EE4Q=GKL<U2+DM-UMZ_UN='17,V_C&Q1!'<P:RT
MHRP*Z+=DLFXA6($7RDX.00.02!C!,W_"9:7_`,^NN?\`@BO?_C-*2L[%0DIQ
MNCH**Y__`(3+2_\`GUUS_P`$5[_\9H_X3+2_^?77/_!%>_\`QFD4=!17/_\`
M"9:7_P`^NN?^"*]_^,T?\)EI?_/KKG_@BO?_`(S0!T%%<_\`\)EI?_/KKG_@
MBO?_`(S1_P`)EI?_`#ZZY_X(KW_XS0!T%%<__P`)EI?_`#ZZY_X(KW_XS1_P
MF6E_\^NN?^"*]_\`C-`'045S_P#PF6E_\^NN?^"*]_\`C-'_``F6E_\`/KKG
M_@BO?_C-`'045S__``F6E_\`/KKG_@BO?_C-'_"9:7_SZZY_X(KW_P",T`=!
M17/_`/"9:7_SZZY_X(KW_P",T?\`"9:7_P`^NN?^"*]_^,T`=!17/_\`"9:7
M_P`^NN?^"*]_^,T?\)EI?_/KKG_@BO?_`(S0!T%%<_\`\)EI?_/KKG_@BO?_
M`(S1_P`)EI?_`#ZZY_X(KW_XS0!T%%<__P`)EI?_`#ZZY_X(KW_XS6Q8WL6H
M6<=U"DZ1OG`G@>%Q@D<HX##IW'/7I0!8KG_`G_)//#7_`&"K7_T4M=!7/^!/
M^2>>&O\`L%6O_HI:`"S_`.2AZS_V"K#_`-&W==!7/V?_`"4/6?\`L%6'_HV[
MK8O;ZWT^!9KJ3RXVECA!VDY>1UC0<>K,H]L\\4`6**QYO%.C6_V@S7GEQP2B
M%YGB<1E_FW!7QM?9L<OM)\L(Q?:%.+%YKFEZ?>"UO+^"WF\IIB)7VA4`))9C
MPO".1DC(C<C(1L`&A7/^(?\`D.>$_P#L*R?^D5U6Q8WUOJ-G'=6LGF0OD`E2
MI!!(964X*L"""I`((((!%8_B'_D.>$_^PK)_Z175`'04444`%%%%`!1110`4
M453>[DF=HK)`[*2'ED!")VX./G(/8'L02#BFHM[$3FH[DMQ=16VU6.97SY<2
MD;Y#Z`?UZ#J<"H?L<EWS?[&3_GV7YH_J20"Q^O'3C(S4UO:QV^X@N\CXWR2-
MN9O\!R>!@#)P!3;O4;.PV"ZN8XFDSY:%OGD([*O5CR.`">16D=[06HHTIU7:
M2OY+]>_Y>NY9HKB]1\2:X/$,$-EI=['INS;)-+ISR\MR'`5@<`8XR",MD9``
MZ'^QHKCYM2EDOF/WDD)$/T\H?*0#R-VYAQ\QP*TGAW32=1[]M?\`@?B=]3".
MC&,JKM=7TU?^7XCY-9MQ*\-LDU[,C%2ELFX!AU4N<(K#T9@>GJ,LV:M><M-'
MI\)_@C42S`=0=Q^13V(VN.#ACD$:,<<<,211(J1HH5448"@=`!V%.K/GC'X5
M]^O_``/ZW,O:1C\$?OU_X'X?,HV^D6<$ZW+1^?=KG_29_GD&1S@G[HY/RKA1
MDX`S5ZBBHE*4G>3,YSE-WD[A1114DA5&XM)TG:ZL'CCF?'FQR`E)L#C./NM@
M`;N>.H;"XO4549.+T*A-Q=T06MU'=Q%E#(ZMLDC<8:-NZL/7D'T((()!!J>J
M=U9R22BYM)E@NPNS>R;U=?[KJ",@9)'((.><%@7VEW]HWQR)Y5S%CS8B<XST
M(/\`$IP<'V((!!`J44US1_X8J4$US0V_+_@?TR.__P!&VWZ\>5_KL?Q1<YS_
M`+N=P[\$#[QJ[15*S_T:>6Q/"K^\@_W">5'^Z>,#@*4I?%'S7Y'+\$_*7Y_\
M']/,NT445!L%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`%
M<_X$_P"2>>&O^P5:_P#HI:Z"N?\``G_)//#7_8*M?_12T`%G_P`E#UG_`+!5
MA_Z-NZU-3TV'5;5+>=I%1+B"X!0@'=%*LJCD'C<@!]L].M9=G_R4/6?^P58?
M^C;NN@H`X_5_AUIFM-?RW%]?1W5]+OFN81"KE/*EA$7^KP5"3R*&(+\C+':N
M+'B#P+8>(]3DO;N]OHO,M#:O#"T81@8YXPW*%MP6ZEQ@XY&0<5U%%`&?HNDI
MHFF"RCN9[G][+,\T^W>[R2-(Q.U57[SGH!7/^+]&M=0\0>%I)I;Y&?4'A(@O
MYX0%%I<MD!'`#9'WA\Q'&<<5V%<_XA_Y#GA/_L*R?^D5U0`?\(;I?_/UKG_@
M]O?_`(]1_P`(;I?_`#]:Y_X/;W_X]7044`<__P`(;I?_`#]:Y_X/;W_X]1_P
MANE_\_6N?^#V]_\`CU=!10!S_P#PANE_\_6N?^#V]_\`CU,F\)Z1!$TDEYK@
M4?\`4=OB2>@`'F\DG@`=:U[K48K?S%3;))$NZ0;PJQ#&=TC'[H[]SC)`.#6=
M#="XE$UE'_:MP/NW3$1V\>>H1\'@_,/D#G(`8\"MH46U=[?U]W];DQ4ZEU25
M[;OHO5_I^13A\'VLSEYIM9BMV1D-O+K-W(S@J5.[]\5`Y.`.>`<CI4$OA_0K
M5_L=M+K]Q<1@#[-:ZY>$QC&0&)F"IQR-Q&<<9Z5>OKJRBF$.OZO;K*Z[TTV*
M3;O!)`&P?O)B?F7&-K=-F:EM]7@B@6#2-"U&6&/.8X[06JQY.>!,8\Y.?NY]
M\9&5*<%HW?R6W^;_`*U+C&A2=V^:7]?/Y)+R9D_\(1]M^:34=<TZ+JL<&NW<
MDOMN9I"HZ\J`>1PY'%:3>"=&:\GNP^JQSS[?->+6+M"^T8&=LHZ"K.[Q)/\`
M)Y6DV..?-\V2[S[;-L6/7.X],8YR#^Q+J?\`X_==U"5&YDAAV0)GT5D42J`>
M@\PG`P2W.8E5DU9*R_KYOYCE7E)<L59?=]_5_.YS]]:^%-.U1-/N]5UJ.=AD
MDZ[?%4R1@,?-^4G.>>PR<<9V/^$-TO\`Y^M<_P#![>__`!ZHG\!>'992[VDS
ME@V_==2L7+'.XL6W9Z]^Y]L6X_#:6D21Z;JFJ6,:@*56X\\$#H`)Q)M`_P!G
M'OG`QGJ<\75N^9*WD0_\(;I?_/UKG_@]O?\`X]1_PANE_P#/UKG_`(/;W_X]
M5CR/$5MS'>Z?>HG"Q36[0NXZ`M*K,H/<D1X)X`7/!_:>KP?+<^'Y97/(:PNH
MI$QZ$RF)L^VTC&.>H#N:<W=%?_A#=+_Y^M<_\'M[_P#'J/\`A#=+_P"?K7/_
M``>WO_QZK'_"4Z*G_'U>?8<_=_M")[3?Z[?-"[L=\9QD9ZBM6&:*XACFAD22
M*10Z.C`JRD9!!'4&A-/8:DGLS"_X0W2_^?K7/_![>_\`QZC_`(0W2_\`GZUS
M_P`'M[_\>KH**8SG_P#A#=+_`.?K7/\`P>WO_P`>H_X0W2_^?K7/_![>_P#Q
MZN@HH`Y__A#=+_Y^M<_\'M[_`/'JBG\$:<Z.T-YK,5QLVI,VL7CE1N5B.9<X
M)49P02.XZUTM%.,G%W0XR<7=')VOAG3Y)3;7<NM0787?L7Q#?.KK_>1C(,@9
M`/`(..,%29KOP=8BUD-O/K+3+AD#:U=DG!!(4M+\I8`KN'(#'MD5OW5K'=Q!
M6+(ZMOCD0X:-NS*?7DCT()!!!(J"WNYTG6UOTCCF?/E21DE)L#G&?NM@$[>>
M.A;#8T6OO1^[^NA52E&K!\NGE^J]-_+<RH?">D3Q"2.\UPJ?^H[?`@]""/-X
M(/!!Z4__`(0W2_\`GZUS_P`'M[_\>K33_0[]HSQ#=-NCQ_#)@EACL"!N^N[)
MY&;M1)6>FQA3DY+7=;_U^)S_`/PANE_\_6N?^#V]_P#CU'_"&Z7_`,_6N?\`
M@]O?_CU=!14FAS__``ANE_\`/UKG_@]O?_CU'_"&Z7_S]:Y_X/;W_P"/5T%%
M`'/_`/"&Z7_S]:Y_X/;W_P"/4?\`"&Z7_P`_6N?^#V]_^/5T%%`'/_\`"&Z7
M_P`_6N?^#V]_^/4?\(;I?_/UKG_@]O?_`(]7044`<_\`\(;I?_/UKG_@]O?_
M`(]1_P`(;I?_`#]:Y_X/;W_X]7044`<__P`(;I?_`#]:Y_X/;W_X]1_PANE_
M\_6N?^#V]_\`CU=!3)IHK>)I9I$CC7J[L`!^)H2OHA-I*[,+_A#=+_Y^M<_\
M'M[_`/'JKOX<\/QW'V=]5U59R0/+/B*\#9/08\[/>MO[9-<?+9V[@=Y;A&C5
M?^`D!F/0XP`?[P-8MUIFDIK]M<ZCJ874Y949(D8(KD?=^4Y(!VXZ\G@<D"MH
M0@K^U=CDK5ZEDZ"3UU;T5O+N3_\`"&Z7_P`_6N?^#V]_^/4?\(;I?_/UKG_@
M]O?_`(]7045B=AS_`/PANE_\_6N?^#V]_P#CU;%C91:?9QVL+SO&F<&>=YG.
M23R[DL>O<\=.E6**`"N?\"?\D\\-?]@JU_\`12UT%<_X$_Y)YX:_[!5K_P"B
MEH`+/_DH>L_]@JP_]&W=7-?FOH-.B?3A(9S>VB-LCWGRFN(UEXP>/++Y/89/
M&,U3L_\`DH>L_P#8*L/_`$;=UT%`'E^I^+O&%O\`VM]FTN^?R+MUAVZ5,_W?
MM?EHF%^>-_(M-SC./M#X9<KLV/%?B'Q)I>O/!I&FSW4*:>\T:K922QR2>5<O
MAG4<,'AMU"[@2)FX)*E>XHH`Q_"][>7^@Q3WR3B;S9HU:X@,,DD:2ND;NA"[
M69%5C\JC+<`#`&/XOU&ZM/$'A9(=&OKU5U!Y`\#P`.QM+E=@WR*=P'S<@+@=
M<\5V%<_XA_Y#GA/_`+"LG_I%=4`'_"0ZI_T)FN?]_K+_`.2*/^$AU3_H3-<_
M[_67_P`D5T%%`&"FOZF\BJW@_6T!(!9IK+"^YQ<$_E7'+XXU[5EGM-'AM;J\
MD&]("WDDJ`,JK,PZ@'OGDG(`X]/HKHHU84XR3C=O9]OP=R94H3UDY)K:S27_
M`&\G%W^377N>9VL/BH^7]NT;6'56WH%CL7D@.=PVLUSY;,#G,ABW'+?=SQJ;
M;J7YKWPOXMO7/^L\[4;54D'HT27*Q$8X(V8(ZYR<]Q16$Y.;O)W')<UD]E]R
M]%LOD<M8ZC-ID)AL/`&J6D3-O*0&PC4M@#.!<=>!^56?^$AU3_H3-<_[_67_
M`,D5T%%(:5MCG_\`A(=4_P"A,US_`+_67_R11_PD.J?]"9KG_?ZR_P#DBN@H
MH`Y__A(=4_Z$S7/^_P!9?_)%'_"0ZI_T)FN?]_K+_P"2*Z"B@#G_`/A(=4_Z
M$S7/^_UE_P#)%'_"0ZI_T)FN?]_K+_Y(KH**`.?_`.$AU3_H3-<_[_67_P`D
M5E31P3327`^'6J0W,C%VN;>2RAFW$\D2)<!P3SG!YR0>IKM:*32>XFD]SA]^
MKQ?+9:/XRM8^I3[7I]QD^NZ>9V';@'''3).:E_KGCN*RN97TG[+!&BL9V@B5
MUYYPJW$P(QC)(Z$^F:]#HI<IG.ES1:3:]#B/^$ZU'38XDUOPMJ:2,@D-U`(4
MM@IZ;GEE41MVVL<YQZ@5J0^)[^XACFA\(ZU)%(H='2>Q*LI&001<\@UT=94W
MA^T,TEQ9R7&GW#L7:2SDV*SD_,S1G,;L>A9E)Z<Y`(>J*2E%6W*G_"0ZI_T)
MFN?]_K+_`.2*/^$AU3_H3-<_[_67_P`D58\[7[+F>UM-2CZEK0FWE],+'(Q4
M^I)D7@GC(^:S8ZS8:A,8(976X"[S;SQ/#+LR!NV.`Q7)QNQC/&<T7&I+8SO^
M$AU3_H3-<_[_`%E_\D5%<:S?W4#0S>"M<9&Q_P`M[($$'(((N<@@@$$<@@$5
MTM%4FT[HM-IW1QUUJVMS:2+:?0]0MKE[E(X+B=[;'!#JTFR5@I)&WC@MC@;L
M"_IFI:O!H\ES?V-S?O@RQFU:`[TV@@+\X!)YQ]1S6IK-A+JFCW5C#<_9FG3R
MS+Y8?"G[PP<=1D?C6+H/A*XT2S:W&N73`-F-HEVA%/)78Y=,$\Y"@]><'%=T
M)TI4&I-*5^S_`#6WI^`Y8.C5?UGVSA-:<JORM=VK6Z_Y)$7_``G$R_ZWPGKE
MOZ?:7LX=WTWW`S^%7?\`A(=4_P"A,US_`+_67_R15W[!J47S0:S)(W0B[MXW
M3'L(PAS^..O'<4O[$O8?GB&EEA_!;P26;,/3S$=B!WQM.<=NHP]G2>TOZ^Y$
M^RJ+:<7_`.!+]'^@?\)#JG_0F:Y_W^LO_DBC_A(=4_Z$S7/^_P!9?_)%&WQ#
M;_.$5T7I$ERLQQTQAHXRV/4R`]^>A/[8UBV^:YT.X>$<O*FS<!Z"-'D9C^(Z
M\X`)H^K2?PM/YH.6HMX_<XO\$V_P#_A(=4_Z$S7/^_UE_P#)%'_"0ZI_T)FN
M?]_K+_Y(J>#Q);2132SV>I6D<2[F>YLY%&.<G(!X&.<U<&L:8SH@U&S+NP1%
M$ZY9CT`YY-1*C4CO%D\ZYN1Z/L]']SU,S_A(=4_Z$S7/^_UE_P#)%'_"0ZI_
MT)FN?]_K+_Y(J2#QAH-S?RV::C"'C`)=SM1CDC"L>">G3KD8SSAT_B%711IE
MA=ZA([,JF.,I'E3@YD8!<<'!Y!QQU%*-*<G9('))J/5_\/\`EKZ:[$/_``D.
MJ?\`0F:Y_P!_K+_Y(J%?%MR;U+1O"VLK*SJK`2V;F,''S,%G)"\CG%"Q^*=2
MV-.+338FD;?%YK2,(QNVY";3N)VG(D`QQCK5J#P]*(HH[K5KMHXY&D$%H%M8
MN=V%`C`?`W="YR0"<UI[*$?CDOE_7X?B/DG+=J/XOY):?>UYKJ96M^+[W2[T
M6\^CW%K`_$4SW-D&FX&[8)+A,$$XY#=1QZT="\;V6KRK/:>%/$<TOF>7]KGM
MXF(8]?F\PA!SD@8`STKIM-\)>'](`%EI%K&5D\Q69-[*W'(9LD=!T-;-)SBM
M%_E_G<%1HIWE>3\[+_-?=;]3AKW7_'OVBW6U\')'%G]\XNH9_ER/N@RQ8(YZ
MY!R.1S7#:CX8\:7>HS7+Z+JEXSMN\ZXFLXW;@<;5F(`'0`'IZ=*]RHITL0Z4
MN:,5]U_S.FEB/92YHP77=7WTZ^6AS=OK^K1VT2/X+UQ65`"/M5G)@X_O&XRW
MU/)J3_A(=4_Z$S7/^_UE_P#)%=!17.<YS_\`PD.J?]"9KG_?ZR_^2*V+&XEN
M[..>:RGLI&SF"<H73!(Y*,R\]>">OKQ5BB@`KG_`G_)//#7_`&"K7_T4M=!7
M/^!/^2>>&O\`L%6O_HI:`"S_`.2AZS_V"K#_`-&W==!7/V?_`"4/6?\`L%6'
M_HV[KH*`.7O/'NCV$^H17(G3[#*(I#A"Q^1Y';8&WJJQQ2/EU7>JYCWY7-S5
MO%ND:)?FTOYI(BENUQ)((RRHH21P#CDDK!.PP#_JB#@E0T>H^"M!U>*>._M9
MY_/E,LCF\F#DE73:'#[A'MED`C!V#>V!R:DU;PAH>N7YO=1M))IVMVMFQ<2H
MK1E)$P55@I.V:4!L9&\X(H`T-+U*'5K!;N%9$!=XWCD`#1R(Y1T."1E65ER"
M0<9!(P:R_$/_`"'/"?\`V%9/_2*ZK4TO2[31K!;*R218%=W_`'DKRL6=R[$L
MY+$EF)R2>M<WXOT+1]3\0>%I;_2K&[DDU!X'>>W20M&+2Y<(21RH8!L=,C/6
M@#L**Y__`(03P?\`]"IH?_@NA_\`B:/^$$\'_P#0J:'_`."Z'_XF@#H**Y__
M`(03P?\`]"IH?_@NA_\`B:/^$$\'_P#0J:'_`."Z'_XF@#H**Y__`(03P?\`
M]"IH?_@NA_\`B:/^$$\'_P#0J:'_`."Z'_XF@#H**Y__`(03P?\`]"IH?_@N
MA_\`B:/^$$\'_P#0J:'_`."Z'_XF@#H**Y__`(03P?\`]"IH?_@NA_\`B:/^
M$$\'_P#0J:'_`."Z'_XF@#H**Y__`(03P?\`]"IH?_@NA_\`B:/^$$\'_P#0
MJ:'_`."Z'_XF@#H**Y__`(03P?\`]"IH?_@NA_\`B:/^$$\'_P#0J:'_`."Z
M'_XF@#H**Y__`(03P?\`]"IH?_@NA_\`B:/^$$\'_P#0J:'_`."Z'_XF@#H*
M*Y__`(03P?\`]"IH?_@NA_\`B:/^$$\'_P#0J:'_`."Z'_XF@#H**Y__`(03
MP?\`]"IH?_@NA_\`B:/^$$\'_P#0J:'_`."Z'_XF@#H*K7VG6.IPB&_L[>[B
M5MX2>)9%#8(S@CKR?SK(_P"$$\'_`/0J:'_X+H?_`(FC_A!/!_\`T*FA_P#@
MNA_^)H!J^Y8_LF_M/^0;K$JIT$-^GVI%'<ALK*3GNTA`!(QTP?VW-9\:OILM
MH@^]=1,)[<=_O##J`.2SHJC!YZ$U_P#A!/!__0J:'_X+H?\`XFC_`(03P?\`
M]"IH?_@NA_\`B:5NQ/+;8VK6[MKZV2YL[B*X@?.V6%PZM@X.".#R"*DCD2:)
M)(W5XW`964Y#`]"#Z5R6N_#K0-2TM8+#2=-L;B"030/#:H@#@'`.T9QR?H<'
MG%8NF?"/1KM$NO$MI%>7!C"B'E1%SG!93EC^@R>O6E=F;G44U'ET[GHTTT5O
M#)--(D<4:EW=V`55`R22>@%97_"5:&_%MJ45Z_>.PS=.!ZE8@S`>^,9('<5%
M#X*\+06L=LGAW2C$B",![1')4#')()/'<]:9_P`()X/_`.A4T/\`\%T/_P`3
M3U-/>_K^D6/[>DE^:RT35KJ/H7\E+?!]-L[(Q[<@8YZY!P?:?$4W^KTW3[='
M^Z\UXSO&#T+1K'M)'=1)@G@-WJO_`,()X/\`^A4T/_P70_\`Q-'_``@G@_\`
MZ%30_P#P70__`!-%GW#E?<L?8-<G^6YUR*)!R&L+$1OGT)E:5<>VT'..>H,-
MQX4L]1BV:M>:CJ)!X,MRT0`]-D.Q3U/)&><9Q@!O_"">#_\`H5-#_P#!=#_\
M31_P@G@__H5-#_\`!=#_`/$T)"=.+5I*_KJ9^E^!VL-5M;R?4(KA('+^5]EV
MY.T@')<XP2#T[5V%<_\`\()X/_Z%30__``70_P#Q-'_"">#_`/H5-#_\%T/_
M`,36U:M.M+FF[OY+\@ITJ=*/+3BHKR27Y'045S__``@G@_\`Z%30_P#P70__
M`!-'_"">#_\`H5-#_P#!=#_\3619T%%<_P#\()X/_P"A4T/_`,%T/_Q-'_""
M>#_^A4T/_P`%T/\`\30!T%%<_P#\()X/_P"A4T/_`,%T/_Q-'_"">#_^A4T/
M_P`%T/\`\30!T%%<_P#\()X/_P"A4T/_`,%T/_Q-'_"">#_^A4T/_P`%T/\`
M\30!T%%<_P#\()X/_P"A4T/_`,%T/_Q-;%C86>F6<=G86D%I:QYV0P1B-%R2
M3A1P,DD_C0!8KG_`G_)//#7_`&"K7_T4M=!7/^!/^2>>&O\`L%6O_HI:`"S_
M`.2AZS_V"K#_`-&W==!7/V?_`"4/6?\`L%6'_HV[KH*`"BBJ]J]X_G_;(((L
M2L(?)F,F^/\`A9LJNUCSE1N`_O&@"Q7/^(?^0YX3_P"PK)_Z175=!7)^*UUY
MM=\.-I>EVEU!!>M*TDMT\>UC;7"_.%B<*F&&&R<L0N.<T`=917/_`&SQA_T`
MM#_\',W_`,BT?;/&'_0"T/\`\',W_P`BT`=!17/_`&SQA_T`M#_\',W_`,BT
M?;/&'_0"T/\`\',W_P`BT`=!17/_`&SQA_T`M#_\',W_`,BT?;/&'_0"T/\`
M\',W_P`BT`=!17+W^K>,+'3KF\_X1O2KCR(GE\FWU:9Y)-H)VHOV;ECC`'<U
M8^V>,/\`H!:'_P"#F;_Y%H`Z"BN?^V>,/^@%H?\`X.9O_D6C[9XP_P"@%H?_
M`(.9O_D6@#H**Y_[9XP_Z`6A_P#@YF_^1:/MGC#_`*`6A_\`@YF_^1:`.@HK
MG_MGC#_H!:'_`.#F;_Y%H^V>,/\`H!:'_P"#F;_Y%H`Z"BN7M]6\87$]W%_P
MC>E1?9I1%OEU:95ERBON0_9OF7Y]N?[RL.U6/MGC#_H!:'_X.9O_`)%H`Z"B
MN?\`MGC#_H!:'_X.9O\`Y%H^V>,/^@%H?_@YF_\`D6@#H**Y_P"V>,/^@%H?
M_@YF_P#D6C[9XP_Z`6A_^#F;_P"1:`.@HKG_`+9XP_Z`6A_^#F;_`.1:KOJW
MC!-1AL_^$;TIO-BDE\Y=6F,:;"@VLWV;ACOR!W"MZ4`=117/_;/&'_0"T/\`
M\',W_P`BT?;/&'_0"T/_`,',W_R+0!T%%<_]L\8?]`+0_P#P<S?_`"+1]L\8
M?]`+0_\`P<S?_(M`'045S_VSQA_T`M#_`/!S-_\`(M'VSQA_T`M#_P#!S-_\
MBT`=!17+WNK>,+.!9?\`A&]*GW2QQ;(-6F9AO=4W$?9ONKNW,>R@GM5C[9XP
M_P"@%H?_`(.9O_D6@#H**Y_[9XP_Z`6A_P#@YF_^1:/MGC#_`*`6A_\`@YF_
M^1:`.@HKG_MGC#_H!:'_`.#F;_Y%H^V>,/\`H!:'_P"#F;_Y%H`Z"BN?^V>,
M/^@%H?\`X.9O_D6C[9XP_P"@%H?_`(.9O_D6@#H**Y>PU;QA?:=;7G_"-Z5;
M^?$DODW&K3))'N`.UU^S<,,X([&K'VSQA_T`M#_\',W_`,BT`=!17/\`VSQA
M_P!`+0__``<S?_(M'VSQA_T`M#_\',W_`,BT`=!17/\`VSQA_P!`+0__``<S
M?_(M'VSQA_T`M#_\',W_`,BT`=!17/\`VSQA_P!`+0__``<S?_(M:&DWMY>1
M3I?V'V.ZMY?*=4<R1/\`*KAHW*J77#`$[1AE8<XR0#0KG_`G_)//#7_8*M?_
M`$4M=!7/^!/^2>>&O^P5:_\`HI:`"S_Y*'K/_8*L/_1MW705S]G_`,E#UG_L
M%6'_`*-NZZ"@`HHHH`****`"BBB@#E];\27FF76N1Q1P>3I^GVMWYKJ3Y2R2
MS++(P!&]8TBW[%PS;2H.2,<_J/Q!UBV@G,NFP:4XT^UO,WJNZV_FO"NV0Y10
MS-)-&JLT>UK8LQ"/E/2**`,_0KY]3\/:9?RR02275I%,SVZL(V+("2@?Y@IS
MQNYQUYK0HHH`****`"LO5=2FL=1T.WB6,I?WK6\I8'(46\TN5YZ[HU'.>"?J
M-2B@#S^S\=ZQ-_9_G:)L\_53ITFT.V7&S>B8'/E[KC=+RC?8WQM\Q=G0>$=>
MO-?TZ[FO;+[+-;W;VY4`[2RA2Z@G[VQR\1895FB9A@':.@HH`****`"BBB@#
M/UR^?3-#O;Z.2"+[/$TKRSJS)$B\LY5?F;:N6VC&[&,KG(X.3XIL+B>!X]-M
M76WMW8M=K*MJ93:#S792`\7^F<8*@_9VPWS_`">F44`</X4^('_"3:\FG_9X
M(/,T]+SREFWR19BMI,MTRK?:MHX',#')W83N***`"BBB@`HHHH`\[/Q'FAU*
MRL9TTTR2ZG)8L8K@G>RRV\31H#A@Z-<L26'SK;E@JK*I2QX9\?3>([;29XHK
M39=ZG]DE,3EPJM8M=;0<\.C%8V)ZE&.%SM7O**`"BBB@`HHHH`*XOQ)XTFT'
M5[NR=]-C1;>"5))IB#;K)/'`)I`=NY-TCDJI&T0C<X\U=O:44`>;V'Q-?5&N
MA''8V?EZ4-1?SI&E-J@BMI6D=5&YUVW)"J`NXV[#=\_[OO-)O6U+1K&_>*.)
M[FWCF:..99E4LH.`Z\.!G[PX/45<HH`****`"BBB@##\0ZW-HUQI`3[)Y=[>
MI:$32%&=G/"H?N@A=[Y)Y\L(`6D!7B],^+/]H?V3^ZL1]NNTB^6?.[?]D_=)
M_P!-(_MGS'G/V9_E7?\`N_4**`,/PQXAA\16]_-!<VEQ';7LENLMJX964`,I
M)!9<[77[K'/!.QBT:;E%%`!1110`5S_@3_DGGAK_`+!5K_Z*6N@KG_`G_)//
M#7_8*M?_`$4M`!9_\E#UG_L%6'_HV[KH*Y^]T;6/^$AGU;2=4L;;[1:0VTD5
MW8//_JWE8,"LR8SYI&"#T%'V/QA_T'=#_P#!--_\E4`=!7*>(H$O/%FEVMS<
M:BEFNFWUP\=C=3PL[(]L%.(6#.0'?`Y^]P,U;^Q^,/\`H.Z'_P"":;_Y*K+U
M7PGX@UFXM[B[US35GMT=(I+6SN[9@KE2P)BO%)!*(<'/04`4[]/#ME83W(_X
M2YC&N0LE]JD*DD@`%W<*.2/\#TIUI'X:N[2.X1O&&V0$C;>ZI)T)'WHW9>W8
MU')\/=9FB>.3Q(KQN"K*SZD0P/4$?;^E._X0'7/^AG_\B:G_`/)]+4SM4YKW
MT]/^"5]:N/#FB:L=.D3Q7<S?ND1X-<NO+>>2146W#M<*/.PXDVG'R?-TK/MO
M$/A"_C633_\`A*[M9(DEA":[<(TP>[-HFU7N5/+C.2``I&X@D+6Q_P`(#KG_
M`$,__D34_P#Y/H_X0'7/^AG_`/(FI_\`R?3-##/BCP4D,,\TWB>&"6XLK<R2
MZ_<*(S=0^<C./M.515^\Q&,@[=V#BY]HTN^\+P:SHT&N3-)=VML]M?>)+V!H
M_M!C\MBR22`Y$\+8'16.?F!6M#_A`=<_Z&?_`,B:G_\`)]'_``@.N?\`0S_^
M1-3_`/D^@#'O]<\,6D5Z(E\1RSV_]HJJ/XDG0.UDH:0'_22PW9&!M+8^8J%Y
MJO<^+O!%E.T5Y)XKMMEV]F[RZW<A4DC0/.,_:>?+W*IQDLS`1B2N@_X0'7/^
MAG_\B:G_`/)]'_"`ZY_T,_\`Y$U/_P"3Z`.;M?%OA:XET^Q6T\73:M>I;F.Q
MM-=N96)E@68D$W"X1%=07<*#R1D*Q70O;_18]!T[5;==9MXKV]-F#K/B:]L4
MB98Y&?>?,<J5>)HL$#+`XR,$V-2^%=UK-NMOJFKVE]`KAUCNEU&50V",@-?D
M9P2,^YJQ!\.M6M;>*WM_$,<,$2!(XXVU)510,``"_P```<8H`PT\3>&#?MI8
MM?%=QJL,I@N+:T\0SN(V$Z6^=S7*?*TKA5R%;'S%54@GN+#PWH>IZ=;7]G?:
MY):W4230O_;E\-R,`5.#+D9!'6N?OOAGJ&IV<EG?ZY!=VLF-\,_]HR(V"",J
M;_!P0#^%6/\`A`=<_P"AG_\`(FI__)]`'0?\(;I?_/UKG_@]O?\`X]1_PANE
M_P#/UKG_`(/;W_X]7/\`_"`ZY_T,_P#Y$U/_`.3Z/^$!US_H9_\`R)J?_P`G
MT`:$FCZ#%*\;2^*RR,5)6^U1AD>A#X(]Q69I;^&-5:Z\B?Q.RPR[%,>J:E(6
M7`PYVN=H)W8!YXSQT"R?#W6)HGBE\2*\;J59&?4B&!Z@C[?R*K6OPLNK"4RV
M>KVMO(5VEX5U%"1Z9%_TX%=$98?D?-%WZ:K_`".J$L+R-2B^;IJO\@\13:)H
M5E)=)%XFN0EG<W)C.L:E$X\H)R59L["9%4N,[2P."H=DY*Y^)O@1+.*2T7Q7
M/<3VDEQ'$_B">,(4,@V2,;GY&/EY``8D,N`20*[C_A`=<_Z&?_R)J?\`\GT?
M\(#KG_0S_P#D34__`)/K!VOH<SM?0Q_#GB'PAXIO-/M]-_X2L_;."[Z[<8@<
MB<JD@%R6#%;:1A@'@KDC=6'8?$'P<[^3J4FLP2JX69[3Q3=3Q0_*Q.6>:,N5
MV-GRED4_(%9BZ@]9-\,]0N+RVO)M<@DNK7=]GF?^T2\6X8;:QO\`*Y'!QUJQ
M_P`(#KG_`$,__D34_P#Y/I",_P`-ZAX<\3ZU;:?:#Q'&MUI0U2&1_$-TWR><
MT3*P2=@K`A3C)ZD':5P</_A./",5QHR7<?B>&WU%S"UVVO7B10R@QD?ZR9&,
M125)/,(7Y&3C)8)UG_"`ZY_T,_\`Y$U/_P"3Z/\`A`=<_P"AG_\`(FI__)]`
M'/Z/XF\,:M??96M?%=JTEW9V\'G>(9QO6YA,T;L?M.%X1OE!+<H`"S%1UGAS
M2M"\3>'[/6;.?Q`EO=H7C637[HL!DCG9.P!XZ9R.AP00*?\`P@.N?]#/_P"1
M-3_^3Z/^$!US_H9__(FI_P#R?0!T'_"&Z7_S]:Y_X/;W_P"/4?\`"&Z7_P`_
M6N?^#V]_^/5S_P#P@.N?]#/_`.1-3_\`D^C_`(0'7/\`H9__`")J?_R?0!H7
MFBZ+:07#^;XE=H58X_M740I('][S,8]^E9VCV^CZIYWF+XBB\O;CR];U";.<
M]=K\=.]+_P`(#KG_`$,__D34_P#Y/H_X0'7/^AG_`/(FI_\`R?6RG24&G'7O
M?_@').EB744HU$HKIR[_`#O?[B#Q/_8_ARR-T(_$=T!97-WY:ZWJ"N!#LY*E
M\A"SJI;JNY6VE=[)QUS\3?`B6<4EHOBN>XGM)+B.)_$$\80H9!LD8W/R,?+R
M``Q(9<`D@5W'_"`ZY_T,_P#Y$U/_`.3Z/^$!US_H9_\`R)J?_P`GUB_(ZE>V
MIC^'/$/A#Q3>:?;Z;_PE9^V<%WUVXQ`Y$Y5)`+DL&*VTC#`/!7)&ZL?1?&GA
M_4='_M.YM=<BMQO#&#Q1>-AE:T4`F62-1\UWAB2%'ED@L"#743?#/4+B\MKR
M;7()+JUW?9YG_M$O%N&&VL;_`"N1P<=:L?\`"`ZY_P!#/_Y$U/\`^3Z!F/>:
M_P"%;2ZBMEB\5SSRZA/IT<<7B&4,\L4L<1&&NQC+2K@'#;<L0%YJOIGB[P1J
MLMM';R>*\SRVMN"=;N6"37#$1QL5N3\VU6<XR%"E20_R5T'_``@.N?\`0S_^
M1-3_`/D^C_A`=<_Z&?\`\B:G_P#)]`&7<ZAH7_"*Z)KUG+J26^K7!AC;4_%E
MU;1PC9*^7D260`_NMNWKE@#@@BL^;QAX.LC>PWQ\3I=:>DS7R6^O74JP^7((
MN#]H!(>4A$RH;HS*BD-72?\`"`ZY_P!#/_Y$U/\`^3Z/^$!US_H9_P#R)J?_
M`,GT`<_JWB[P1HEU/;W\GBN)XOM!YUNY^=893#E1]IRV^1750/F^4LP5/FJP
MOB'P@6O`?^$K7[#=_9+O.NW!,#B*264LHN2VV-89`2`=Q4A-]:%K\,]0L?/^
MQZY!;^?*T\WD_P!HIYDC?>=L7_+'`R3R:L?\(#KG_0S_`/D34_\`Y/H`YO5_
M%'AG2_#^B:_G61INII*X\[Q1=B<;"!M2..60,Y!;JRJI`5V0D"HT\:^#;F*Z
M2R/B.6]AM+NZ\A_$LV"L"L3ETNF!W%6`"[FP-^W9ACU'_"`ZY_T,_P#Y$U/_
M`.3Z/^$!US_H9_\`R)J?_P`GT`:FD^']%UG1K'5+>X\0+!>V\=Q&LFNWH8*Z
MA@#B8C.#ZFKG_"&Z7_S]:Y_X/;W_`./5S_\`P@.N?]#/_P"1-3_^3Z/^$!US
M_H9__(FI_P#R?0!T'_"&Z7_S]:Y_X/;W_P"/5C^+/#=IIG@W7+^SOM<CNK73
M[B:%_P"W+P[76-BIP9<'!`ZU7_X0'7/^AG_\B:G_`/)]1S_#K5KJWEM[CQ#'
M-!*A22.1M2974C!!!O\`!!'&*`/1**Y_['XP_P"@[H?_`()IO_DJC['XP_Z#
MNA_^":;_`.2J`.@KG_`G_)//#7_8*M?_`$4M'V/QA_T'=#_\$TW_`,E5H:%I
>G]B>'M,TGSO.^PVD5MYNW;OV(%W8R<9QG&30!__9
`
end

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
