[Dave Baumann]

ATI's XILLEON(tm) Offers Comprehensive Suite of Graphics and Video Solutions For Windows Media Center Extender Products
Multi-faceted chip enables great multimedia experience

MARKHAM, Ontario/ Munich, Germany - March 25, 2004 - ATI Technologies Inc. (TSX:ATY, NASDAQ:ATYT) today announced support for Microsoft Windows Media Center Extender products with its integrated XILLEON(tm) 225 system-on-a-chip, allowing consumers to access their favorite digital entertainment, such as live and recorded television, photos, movies, and music that reside on their Windows XP Media Center Edition PC, from any room in the home - regardless of where the PC is located.

"We are pleased to see companies like ATI delivering innovative technologies that will support extending the Media Center PC experiences to other television displays in the home with Windows Media Center Extender products," said Brad Brooks, Director of Marketing, Windows eHome division, Microsoft Corp. "ATI's integrated system-on-a-chip is a great example of this, ensuring that consumers will be able to get the most of their favourite digital entertainment experiences without the purchase of an additional computer."

Windows Media Center Extender products will enable the distribution of rich digital content and experiences from a Windows Media Center PC to television displays in any room throughout the home. With a Windows Media Center Extender product, consumers can enjoy a variety of entertainment from their Windows Media Center PC - music, recorded television programs, photo slide shows, home videos and more - on a television in one room even if the Windows Media Center PC is being used at the same time by another family member in a different room.

"ATI continues to support Microsoft Windows XP Media Center Edition 2004 with a comprehensive suite of PC graphics and TV solutions," said Phil Taylor, Director, Strategic Relationships, ATI Technologies. "That high level of quality is maintained with ATI's XILLEON by offering a multimedia rich, cost-effective one-chip solution for global consumer electronics manufacturers."

XILLEON 225 incorporates unique features for Microsoft Windows Media Center Extender products, including: a built-in 300MHz MIPS® CPU to power the Windows CE operating system; built-in audio and video decoders to decode the digital audio and video material sent from the Windows Media Center Edition PC to Windows Media Center Extender products; built-in ports to facilitate the processing of Windows Media Video and Audio digital material; a built-in graphics engine to process the graphical user interface data sent to Windows Media Center Extender products; a built-in display engine to drive a television; and, built-in interfaces to accommodate numerous system connections such as conditional access/security, digital audio output (S/PDIF), infrared, and more.

According to Microsoft, Windows Media Center Extender products are expected to ship in late 2004 in the United States and Canada through a select set of industry-leading original equipment manufacturers (OEMs) and original design manufacturers (ODMs) including Alienware Corp., Dell Inc., Gateway Inc., HP, Samsung Electronics Co. Ltd., Tatung Co. and Wistron Corp.

About ATI Technologies
ATI Technologies Inc. is a 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 and is dedicated to deliver leading-edge performance solutions for the full range of PC and Mac desktop and notebook platforms, workstation, set-top and digital television, game console and handheld markets. With 2003 revenues in excess of US $1.3 billion, ATI has more 2,200 employees in the Americas, Europe and Asia. ATI common shares trade on NASDAQ (ATYT) and the Toronto Stock Exchange (ATY).