[Dave Baumann]

ATI Extends Patent Cross-License Agreement with Intel
Also Receives License for 800MHz Front Side Bus

MARKHAM, Ontario - July 3, 2003 - ATI Technologies Inc. (TSX: ATY, NASDAQ:ATYT) today announced that it has agreed to an extension to the current patent cross-license agreement with Intel Corporation. As part of this extension, ATI has also secured rights to build integrated graphics processors that support Intel's Pentium® 4 800MHz FSB (front side bus).
"Intel is committed to bringing powerful, feature-rich computing solutions to the market place," said Louis Burns, vice president and co-general manager, Desktop Platforms Group, Intel Corporation. "This agreement will provide our customers with new choices and flexibility in the development and configuration of their Pentium 4 systems."

"ATI and Intel are recognized technology leaders in their respective categories and this agreement will enable both companies to build upon those unique strengths and bring exciting new computing options to consumers worldwide," said Dave Orton, President & Chief Operating Officer, ATI Technologies Inc. "This agreement will also allow ATI to bring our technology-leading RADEON(TM) graphics to chipsets for Intel's 800MHz FSB Pentium 4 microprocessors."

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 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).