[Dave Baumann]

ATI and Valve team up to showcase the best of 3D gaming
ATI named preferred graphics partner for Half-Life® 2

MARKHAM, Ontario/ Munich, Germany - September 30, 2003 - ATI Technologies Inc. (TSX: ATY, NASDAQ: ATYT) today announced that Valve®, a leading game developer, has named ATI as the preferred graphics card partner for its upcoming game Half-Life® 2. As a part of this agreement with Valve, ATI customers will get the full Half-Life 2 game free[1] with the purchase of select RADEON(tm) products.

Valve's Half-Life 2 is among the most anticipated games in history and caught the attention of the industry and gamers alike winning Best of Show at this year's E3. It is the first game to make full use of Microsoft's DirectX® 9 programming interface by taking advantage of features like high dynamic range lighting, bump mapped characters, soft shadows and improved full scene anti-aliasing. As such, it provides an excellent demonstration of the full capabilities of ATI's DirectX 9 hardware.

"ATI's DirectX 9 graphics architecture is the best in the industry," said Rick Bergman, Senior Vice President, Marketing, General Manager, Desktop, ATI Technologies Inc. "We are thrilled to be able to offer Half-Life 2 as an example of the unbelievably realistic gaming experience that is now possible thanks to RADEON graphics."

Built from the ground up with new shader-intensive games in mind, ATI's DirectX 9 hardware, like the RADEON(tm) 9800 XT and RADEON(tm) 9600 XT, has proven to be ideal development and gaming platforms for Half-Life 2.

"ATI has been a great partner on the engineering front. Our work with ATI has enabled DirectX 9 functionality that wouldn't have been possible with any other company," said Gabe Newell, Founder and Managing Director, Valve. "ATI's hardware gives our customers the best experience with our software. So we've chosen to extend our relationship to include marketing initiatives that will showcase both Half-Life 2 and RADEON products."

A part of ATI's Get in the Game initiative, this co-marketing agreement with Valve is an extension of an already robust relationship. ATI works closely with game developers and publishers worldwide to ensure that gamers can enjoy the best experience possible with ATI's visual processors and today's hot new games.

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 2,000 employees in the Americas, Europe and Asia. ATI common shares trade on NASDAQ (ATYT) and the Toronto Stock Exchange (ATY).