[Dave Baumann]

ATI Sets Gold Standard for Mobile Graphics Performance
MOBILITY(tm) RADEON(tm) 9700 adopts next generation low-k manufacturing process to offer compelling improvements in performance and power consumption

MARKHAM, Ontario/ Munich, Germany - February 3, 2004 - ATI Technologies Inc. (TSX:ATY, NASDAQ:ATYT), the global leader for mobile graphics, today set a new industry standard with the introduction of the first low-k based graphics solution for notebook PCs. The MOBILITY(tm) RADEON(tm) 9700 was unveiled today at a product launch gala event in Taipei, Taiwan.

As the first mobile graphics provider to support Microsoft® DirectX®9.0, ATI has a proven track record of pushing the envelope in mobile visual processing. The addition of low-k extends the company's lead in notebook graphics innovation, providing key enhancements to enable the industry's highest mobile clock speeds while reducing power consumption. MOBILITY RADEON 9700 is a robust solution that fully leverages DirectX®9.0 capabilities to provide the most powerful mobile graphics solution on the market today.

MOBILITY RADEON 9700 will power notebooks from such industry leaders as Acer, Alienware, Fujitsu-Siemens, Gericom, LG, Medion, Packard Bell, rockdirect, Samsung, Targa and VoodooPC. In addition, leading original design manufacturers such as Asus, Clevo, Compal, ECS, FIC, Quanta, Uniwill and Wistron will offer notebooks including the MOBILITY RADEON 9700.

"With recent advances in mobile graphics technology, consumers can now enjoy a rich visual experience from their notebook PC that rivals that of the desktop," said Phil Eisler, Vice President and General Manager. Mobile and Integrated Products Group, ATI Technologies Inc. "ATI is extending its market leadership in notebook graphics by pioneering the use of low-k technology to offer new levels of performance and power efficiency with the introduction of MOBILITY RADEON 9700."

ATI worked closely with TSMC, to develop and implement a low-k technology for the MOBILITY RADEON 9700. TSMC's low-k technology reduces device capacitance at the interconnect level to enhance the performance of ATI's proprietary technologies that are built into the MOBILITY RADEON 9700.

"The emergence of low-k products such as the MOBILITY RADEON 9700 is a prime indicator of a fundamental shift in semiconductor process technologies," said F.C. Tseng, deputy chief executive officer at TSMC. "TSMC is the only foundry with two generations of production-proven low-k based semiconductor processes, enabling companies like ATI to make great strides in device performance and optimization. The introduction of MOBILITY RADEON 9700, brings low-k technology into the mainstream, fully harnessing these new capabilities for mobile users around the globe."

Valve software, the award winning software house responsible for the smash hit Half-Life and the forthcoming Half-Life 2, recently had the opportunity to experience the MOBILITY RADEON 9700 first hand. "ATI has earned its leadership position in the desktop GPU market by consistently delivering top performing products," said Gabe Newell, Managing Director, Valve. "With its latest mobile products, ATI is extending its line of superior product offerings to new markets. If you're going to play games on a mobile PC, play it on a MOBILITY RADEON 9700."

Key features of the MOBILITY RADEON 9700 include:

• Introduces low-k technology for the fastest mobile performance and longest battery life;
• Most advanced mobile technology to drive over 100 of the top DirectX® 9.0 game titles;
• Four powerful rendering pipelines that deliver the ultimate cinematic visuals;
• Features POWERPLAY(tm) 4.0 so you can get the most life out of your notebook battery - without sacrificing performance;
• First in the industry to deliver SMARTSHADER(tm) Effects which delivers a unique visual experience to the look of games; and
• Features ATI's VPU RECOVER for the industry's most stable 3D
  acceleration software

Notebooks featuring MOBILITY RADEON 9700 are now shipping and currently available in Europe at Media Markt.

About ATI Technologies
ATI Technologies Inc. is the world leader in the design and manufacture of innovative 3D graphics and digital media silicon solutions. An industry pioneer since 1985, ATI is the world's foremost visual processor unit (VPU) provider. ATI is dedicated to delivering leading-edge performance solutions for the full range of PC and Mac desktop and notebook platforms, workstations, set-top and digital televisions, game consoles and handheld device markets. With 2003 revenues in excess of US $1.3 billion, ATI has more than 2,200 employees in the Americas, Europe and Asia. ATI common shares trade on NASDAQ (ATYT) and the Toronto Stock Exchange (ATY).