[Dave Baumann]

ATI Delivers High-Quality, High-Performance Audio and Video, Enabling A Rich Multimedia Experience On Mobile Phones
IMAGEON(R) 2282 and 2182 media processors take mobile phones to the next level delivering breakthrough features such as camcorder functionality, video streaming and CD-quality ring tones

MARKHAM, Ontario - March 14, 2005 - ATI Technologies Inc. (TSX:ATY - News; NASDAQ:ATYT - News) introduces two new media processors, IMAGEON® 2282 and IMAGEON® 2182, featuring groundbreaking multimedia capabilities that can turn a mobile phone into a high-resolution megapixel digital camera, a high-fidelity digital audio player and a digital camcorder with streaming video and video conferencing capabilities. In addition to being fully compliant with the 3GPP mobile media standards, these IMAGEON processors are capable of delivering high-levels of performance and quality independent of the host processor.

"Just imagine the freedom of taking the functionality of your camcorder, MP3 player and digital still camera with you in a package that only weighs a few ounces," said Ravi Gananathan, Senior Product Marketing Manager, Handheld Products Group, ATI Technologies Inc. "The new IMAGEON processors from ATI combine advanced audio and video processing capabilities to turn mobile phones into mobile entertainment centers."

The flexible and programmable audio engine in the new IMAGEON processors enable new features such as CD-quality, 3D ring-tones along with high-quality stereo recording and playback in industry standard formats, including AMR, AAC, MP3, Real Audio, WMA and MIDI. The video engine enables a mobile digital video recorder/player and a 3 mega-pixel digital still camera. In addition, the IMAGEON 2282 provides video streaming and video conferencing functionality with picture-in-picture support.

By acquiring CuTE Technologies and establishing an ATI office in India, ATI has expanded its multimedia expertise to audio processing thereby strengthening its presence in the mobile phone market. CuTE's audio expertise allows ATI to provide a full set of industry standard audio solutions, supporting more than thirteen codecs, all optimized for the IMAGEON architecture's low power consumption and low memory footprint.

"The best camera is the one you have on hand to capture a memorable moment. That applies to all media devices," said Gananathan. "Digital camcorders are the next killer application that carriers and consumers are looking for on mobile phones. The next generation IMAGEON powered mobile phones will allow users to be ready when they need to be - to snap a picture, record a movie or listen to music with no compromise on quality."

Keeping with the ATI tradition, the IMAGEON 2282 and 2182 also deliver unparalleled visual quality and display features along with ATI's PowerPlay(TM) power management technology that offers the lowest power consumption at all levels of functionality and therefore extends battery life.

The higher performance IMAGEON 2282 is targeted at the high mid-tier mobile phone segment while the IMAGEON 2182 targets the mainstream, low mid-tier segment. All IMAGEON components come with the necessary software drivers and middleware that is compatible across the product line, offering OEM customers a time-to-market advantage to introduce the latest multimedia technologies with ease. Phones powered by the new IMAGEON processors are expected to ship later this year from leading handset manufacturers.

ATI is a leader in the design and manufacture of discrete media processors for mobile phones with more than 20 handset models available in the market from many of the world's top manufacturers.

For more information on ATI's IMAGEON products, please visit [url=http://www.ati.com]www.ati.com[url].

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 graphics processor unit (GPU) 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 device markets. With 2004 revenues of US $2 billion, ATI has more than 2,700 employees in the Americas, Europe and Asia. ATI common shares trade on NASDAQ (ATYT) and the Toronto Stock Exchange (ATY).