[Dave Baumann]

ATI Brings High-Quality Video and Imaging Capabilities To Handsets
Power-efficient multimedia solution supports camera-phones and camcorder-phones

MARKHAM, Ontario/ Munich, Germany - February 19, 2004 - ATI Technologies Inc. (TSX: ATY, NASDAQ: ATYT) announces the availability of the IMAGEON(tm) 2260, a multimedia processor that brings high quality video and imaging capabilities to mobile phones. This solution enables the convergence between communication handsets and digital still cameras and video player/recorders. IMAGEON 2260 is a highly integrated multimedia co-processor that offers handset manufacturers a unique opportunity for significant power, space and material cost reductions.

The IMAGEON 2260 offers fully self-contained graphics, video and imaging capabilities to perfectly complement communication baseband solutions. It enables high-quality (high-resolution, high-frame rate) video playback, video recording and two-way video conferencing. Handset manufacturers will benefit from IMAGEON 2260's support for high-resolution (megapixel) camera modules, putting camera phones on par with entry-level digital still cameras.

"IMAGEON 2260 optimized architecture unloads heavy processing tasks from the communication baseband, which results in higher performance and significantly lower power consumption as opposed to pure software solutions," said Olivier Brecheteau, Sr Product Marketing Manager, Handheld Products Group, ATI Technologies Inc. "ATI has leveraged many years of multimedia expertise into the IMAGEON family of products to help handset manufacturers differentiate themselves."

IMAGEON 2260 is fully compliant with industry-led 3GPP standards (3rd Generation Partnership Project) and offers the following features:

• Support for high-quality MMS (Multimedia Messaging Services);
• Still picture capture and processing (JPEG encode and decode) with support for high-resolution (megapixel) camera modules;
• Video recording, playback or streaming up to CIF, 30 frames-per-second (Video encode and decode), plus simultaneous encode and decode for video conferencing;
• Advanced 2D graphics acceleration;
• Integrated frame buffer and LCD controller for space, cost and power saving; and,
• Exceptional visual quality and display features.

Availability
ATI's IMAGEON 2260 media co-processor is currently sampling. Mass production shipments will start in Q2 2004.

ATI Technologies will exhibit its handheld technologies at 3GSM World Congress 04 in Cannes, France, February 23-26, 2004.

About ATI Technologies
ATI Technologies Inc. is the 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. ATI is dedicated to delivering leading-edge performance solutions for the full range of PC and Mac desktop and notebook platforms, workstations, set-top and digital televisions, game consoles and handheld device markets. With 2003 revenues in excess of US $1.3 billion, ATI has more than 2,200 employees in the Americas, Europe and Asia. ATI common shares trade on NASDAQ (ATYT) and the Toronto Stock Exchange (ATY).