[Dave Baumann]

ATI's Digital Receiver Technology Selected by Matsushita Electronic Components
ATI's latest advanced digital receiver chips to enable Matsushita tuner solutions

MARKHAM, Ontario/MUNICH, Germany - January 8, 2004 - ATI Technologies Inc. (TSX:ATY, NASDAQ:ATYT) announced today that Japan-based Matsushita Electronic Components Co., Ltd. (MACO) has selected THEATER(tm) 310 and THEATER(tm) 313 DTV Cable and Terrestrial Receivers for its latest generation of Integrated Tuner Demodulator (ITD) products. Matsushita is widely known as a world leading producer of components for digital audio/visual devices and reported sales of more than 400 billion yen in 2002. ATI's family of THEATER(tm) products offers digital reception technology with a high level of integration that allows manufacturers to develop high performance, high functionality products in a space- and cost-effective manner.

Matsushita's new products will combine proven HDTV tuner technology, for terrestrial and cable markets, with ATI's latest THEATER 310 and THEATER 313 digital receiver chips. The ITD products are intended for terrestrial and digital cable compatible TV, set-top box (STB), and PC-DTV (personal computer-digital television) products for countries using the ATSC (Advanced Television Systems Committee) standards.

The THEATER 310 and THEATER 313 enable manufacturers to deliver exceptional cable and terrestrial performance products to consumers. Both chips incorporate ATI's latest advanced receiver technology and feature set, for the ATSC, NTSC (National Television Standards Committee) and cable markets.

ATI Technologies will exhibit its DTV technologies at International CES in booth 23045 (LVCC south hall) January 8-11, 2004 in Las Vegas, Nevada.

About Matsushita Electronic Components
Japan-based Matsushita Electronic Components Co., Ltd. (MACO) is a wholly-owned subsidiary of Matsushita Electronic Industrial Co., Ltd. (MEI)(NYSE:MC), one of the world's leading producers of electric and electric components for the digital audio/visual, information & communication, and automotive industries. With more than 5,700 employees, the company reported sales of more than 400 billion yen in 2002. For more information, please visit http://panasonic.co.jp/maco/

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 2003 revenues in excess of US $1.3 billion, ATI has more 2,200 employees in the Americas, Europe and Asia. ATI common shares trade on NASDAQ (ATYT) and the Toronto Stock Exchange (ATY).