[Dave Baumann]

ATI Supports Tapwave, Inc. with Advanced Graphics Solutions
World leader in graphics supports new mobile entertainment gear manufacturer

MARKHAM, Ontario - May 7, 2003 - ATI Technologies Inc. (TSX: ATY, NASDAQ: ATYT) today announced support for Tapwave(tm), Inc. by agreeing to deliver ATI's IMAGEON* graphics solution for its future product offerings.

Tapwave is a new company with products that address the mobile entertainment and on-the-go lifestyle needs of technology enthusiasts. Tapwave's offerings, debuting later this year, will enable users to enjoy games, music, videos, photos, and manage their life in a compact and mobile form-factor. The devices will include features such as analog navigation, Bluetooth connectivity, and gaming controls for a complete on-the-go entertainment experience.

The inclusion of ATI's IMAGEON media co-processor not only enables graphics acceleration and all the multimedia functions for the best user experience, but also contributes to the overall power saving at the system level for longer battery life and even more enjoyment with the device.

"We recognize ATI as the leader in the video graphics industry and we welcome the company's support of our efforts," said Byron Connell, Founder, Sr. VP of Marketing, Tapwave. "We believe there is a currently unaddressed need for high quality mobile entertainment gear and as a response we've gathered key industry stakeholders to support us in creating products to address the market opportunity. Our intensive research has shown ATI's IMAGEON technology and its brand strength as key elements for success with our future product offerings."

"ATI is proud to support Tapwave by providing innovative multimedia solutions for their well thought-out and innovative mobile entertainment products," said Azzedine Boubguira, Director of Marketing, Handheld Products Group, ATI Technologies Inc. "ATI contributes years of experience as a key provider of the best visual quality solutions. ATI's IMAGEON technology has been accepted by many manufacturers of multimedia mobile devices and new generation mobile phones as a solution of choice for displaying high quality graphics and video, while extending battery life."

The IMAGEON family of products features a series of media co-processors for handheld devices that integrate an advanced graphics engine, an MPEG/JPEG decoder, a programmable LCD panel controller and memory alongside a powerful and versatile set of peripheral I/O functions. The highly optimized architecture and features of the IMAGEON technology derive from the well established know-how for offering the best visual quality that made the reputation of ATI Technologies for many years and in many markets.

About Tapwave, Inc.
Pioneers of a new category of mobile entertainment gear, Tapwave is changing the way people live, play and interact on the go. Founded in May 2001, Tapwave is a privately funded startup company in Mountain View, CA. Through a wealth of experience and strong partnerships, Tapwave is developing a portfolio of innovative next-generation products tailored to deliver the most fun and function in mobile entertainment gear.

More information about the company can be found on the Internet at http://www.tapwave.com.

About ATI Technologies Inc.
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 2002 revenues in excess of US $1 billion, ATI has more than 1,900 employees in the Americas, Europe and Asia. ATI common shares trade on NASDAQ (ATYT) and the Toronto Stock Exchange (ATY).

For media or industry analyst support, please visit our Web site at http://www.ati.com

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