[Dave Baumann]

Experience Highest Quality Home Theater TV on Your PC with ATI’s TV WONDER™ ELITE
Add home theater quality video to your PC for a fraction of the cost of expensive consumer electronics systems

Thursday January 6, 2005 - MARKHAM, Ontario - January 6, 2005 – ATI Technologies Inc. (TSX: ATY, NASDAQ: ATYT) today delivers home theater quality TV to your PC with the TV WONDER™ ELITE. This new TV capture card incorporates the same advanced video processing technology that ATI developed for high-end televisions – almost all the major TV manufacturers are using ATI’s digital television (DTV) technology. As a result, TV WONDER ELITE delivers high-end TV image quality to PCs, offering exceptional visual results previously seen only in home theater settings.

ATI is bundling the new and improved REMOTE WONDER™ PLUS for full wireless application control. TV WONDER ELITE will be available this winter from major computer retailers and ATI.com with a manufacturer’s suggested retail price (MSRP) of US $149.00.

“ATI's Multimedia division is delivering a new era of digital entertainment capabilities for the personal computer,” said Paul Lypaczewski, Vice-President & General Manager, Multimedia Business Unit, ATI Technologies Inc. “ATI’s leadership in both DTV and graphics technologies has led to a unique PC TV video breakthrough for Microsoft Windows XP and Microsoft Windows XP Media Center solutions for both ATI’s customers and end consumers. TV on the PC will never be the seen the same way again.”

TV WONDER ELITE is certified by the Imaging Science Foundation (ISF) as proof of its high quality image presentation. ISF is a key component for the Display Standards industry, and is dedicated to improving the quality of electronic imaging. With an approved ISF logo, TV WONDER ELITE customers can be assured of having the best image quality.

TV WONDER ELITE powers a variety of complete software solutions and offers full personal video recorder (PVR) capabilities allowing users to watch, record and pause live television with ease.

TV WONDER ELITE also offers the following unique features:

• ATI THEATER™ 550 PRO video processor - Delivers sharper images, truer colors, and more symphonic sound than any other PC-based TV solution. 12-bit analog-to-digital conversion optimizes analog video reception from TV channels or external video sources. Advanced motion-adaptive 3D comb filter delivers true color and fine picture detail from cable and antenna TV broadcasts, VCRs, and other video sources.
• Hardware MPEG-2 Encoder - Performs artifact-free MPEG2 encoding in real time enabling more video content to be recorded to a single DVD-R/DVD-RW disk or hard drive while achieving home theater quality.
• Fully digital audio - Simplified installation and setup with the highest audio fidelity and without sound card connections.
• REMOTE WONDER™ PLUS – New and improved radio frequency (RF) wireless remote control allows easy access to record and watch TV broadcasts. Also offers complete control over any computer application.

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 and is dedicated to delivering 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).