[Dave Baumann]

ATI Redefines the Multimedia Personal Computer with the New ALL-IN-WONDER® X800 XT
Newest video card offers award-winning powerful video and graphics plus innovative multimedia technology

MARKHAM, Ontario/ Munich, - September 9, 2004 - Multimedia entertainment is redefined with the new ALL-IN-WONDER® X800 XT from ATI Technologies Inc. (TSX: ATY, NASDAQ: ATYT). Built upon the award-winning powerful RADEON® X800 Visual Processing Unit (VPU), this new multimedia add-in video card brings innovative solutions for home theater, video editing and gaming enthusiasts. Shipping this fall in North America, ALL-IN-WONDER X800 XT will be available with a manufacturers suggested retail price (MSRP) of $499 USD from major computer retailers and ATI.com. ATI's European add-in-board manufacturers, including Connect3D Inc., Hightech Information System Limited, Info-Tek Corporation, Sapphire Technology Limited, and Tul Corporation, will offer ALL-IN-WONDER X800 XT in various configurations later this year.

ALL-IN-WONDER X800 XT is the first video card to feature DVI-I and VGA monitor connectivity plus a TV and FM Radio tuner in a single slot device. This video card is also the first ALL-IN-WONDER® to feature new input and output block connectors that provide easy access to peripheral devices.

"ATI continues to set the benchmark by which all other multimedia solutions will be measured," said Godfrey Cheng, Director of Marketing, Multimedia Products, ATI Technologies. "With enhanced connectivity and functionality, combined with the incredible RADEON X800 XT graphics and video processing capabilities, ATI continues to lead the industry."

"With the successes of several generations of ALL-IN-WONDER and MULTIMEDIA CENTER software, we're committed to enhancing the digital computer experience while building upon ATI's video and software innovations for PC."

ALL-IN-WONDER X800 XT features extraordinary video processing capabilities that reduce noise, intelligently de-interlace and accelerate video playback that produce unmatched video quality. With VIDEOSHADER(tm) HD, RADEON X800 graphics technology takes advantage of its advanced video processing engine for user programmable video effects, video quality enhancement, and encoding and decoding of many video standards, including MPEG1/2/4, Real Media, DivX and Microsoft Windows Media Video 9. RADEON X800 Graphics Technology also supports the latest high-definition and wide display formats, giving users bigger and more vivid movie, gaming and Internet experiences.

ALL-IN-WONDER X800 XT includes:

• MULTIMEDIA CENTER(tm) 9.02 - ATI's critically acclaimed software suite includes all the integrated programs to create a true multimedia experience whether it is for home theaters, video editing or game playing. New features include EAZYLOOK(tm), a distance user interface for easy-to-read on-screen information for TV and DVDs, and EAZYLAUNCH(tm) that allows EAZYLOOK to load directly at Windows start-up and, once loaded, display a menu of launchable features. The software also includes support for digital audio, DVD burning direct from within the MULTIMEDIA CENTER Library application, and more;
• RADEON X800 XT - ALL-IN-WONDER X800 XT delivers full RADEON X800 XT speed, 16 parallel pixel pipelines capable of an incredible eight gigapixels/second fill rate in full precision, and breakthrough image enhancement technology. RADEON X800 Graphics Technology enables High-Definition Gaming to play amazing computer games such as Half-Life 2;
• Digital TV tuner - This silicon digital TV tuner provides instant viewing of up to 125 channels of cable or antenna broadcasts. The tuner also enables high quality reception for FM radio broadcasts;
• Connector dongles - New uniquely designed innovative modular input and output blocks are completely flexible and can be joined together to allow users to place the input and output connections in a variety of easily accessible combinations;
• Serious Magic Visual Communicator - Visual Communicator features a new video production process that integrates real-time video with real-time 3D graphics. The software program includes an on-screen teleprompter, customizable graphics and titles, real-time transition and green screen effects as well as virtual sets;
• REMOTE WONDER(tm) II - ATI's second-generation radio-frequency remote control device allows for complete computer control with the benefits of wireless connectivity;
• Gemstar's GuidePlus+ - This intelligent free integrated program guide (North America only) allows users to view and search TV listings by category, actor/performer, or date. Schedule and record programs at the click of a mouse - all the benefits of a PVR without the monthly fees;
• Pinnacle Studio 9 (ATI Version) - This newly created full-featured program offers digital video control with additional ATI-based bonuses, and delivers powerful features for consumer video editing;
• muvee autoProducer - muvee autoProducer DVD Edition is integrated into MULTIMEDIA CENTER as automatic video production software that enables users to quickly and easily create home music videos in a fraction of the time it would take using traditional video editing products; and
• Matchware Mediator 7 - The software program allows for the creative combination of text, pictures, videos and sounds to build stunning presentations in a few minutes plus create web sites with streaming video and Flash® executables.

While these features will be built into the North American version of ALL-IN-WONDER X800 XT, European add-in-board manufacturers will each configure their own products, based on ALL-IN-WONDER X800 XT, later this year.

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 than 2,700 employees in the Americas, Europe and Asia. ATI common shares trade on NASDAQ (ATYT) and the Toronto Stock Exchange (ATY).