[Dave Baumann]

ATI Acquires CuTe Solutions Pvt. Ltd. Broadening Expertise in Audio and Digital Media Solutions for Consumer and PC Business

MARKHAM, Ontario - March 14, 2005 - ATI Technologies Inc. (TSX:ATY - News; NASDAQ:ATYT - News), has closed its acquisition of CuTe Solutions Pvt. Ltd. of Hyderabad, India. CuTe's expertise in audio and digital media solutions will broaden ATI's offerings for consumer electronics devices and personal computers. When added to ATI's existing leadership in graphics and video technologies, ATI is very well positioned to lead the industry in digital multimedia solutions for all platforms.

"With CuTe's expertise in audio, our customers can look to ATI for the industry's best integrated multimedia solutions," said Adrian Hartog, Senior Vice President and General Manager, Consumer Business Unit, ATI Technologies Inc. "We are pleased to have the CuTe team join ATI."

CuTe's offices in Hyderabad will also form the basis of ATI's new research and development centre in India, ATI Technologies India Private Limited. ATI will retain CuTe's staff and plans to hire additional engineering resources. "We are delighted to join the ATI team," said Dasaradha Gude, Managing Director, ATI Technologies India Pvt. Ltd. "ATI has demonstrated its strength in graphics and video and is partnered with the best consumer electronics and PC companies in the world. CuTe will strengthen ATI's offerings even more."

For more information on ATI's family of products please visit www.ati.com.

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)

[Bouncing Zabaglione Bros.]

Does this mean ATI's version of Nvidia Soundstorm-type technology is on it's way? Surely you'd only buy a company that makes sound products if you want that tech in your own products.

[Joe DeFuria]

Originally Posted by Bouncing Zabaglione Bros.

Does this mean ATI's version of Nvidia Soundstorm-type technology is on it's way? Surely you'd only buy a company that makes sound products if you want that tech in your own products.

I assume it does means that...in addition to integrating better audio into set-top device silicon / tv tuner add-in cards. In fact, I'd wager that for the short term, this is more about consumer electronics than PC stuff. Pure speculation though.

[Bouncing Zabaglione Bros.]

Originally Posted by Joe DeFuria

I assume it does means that...in addition to integrating better audio into set-top device silicon / tv tuner add-in cards. In fact, I'd wager that for the short term, this is more about consumer electronics than PC stuff. Pure speculation though.

I'd really like to see more competition to Creative in the sound arena, especially now that Nvidia seems to have given up the fight on that front.