Press Release - 2004

MARKHAM, Ontario – ATI Technologies Inc. (TSX:ATY, NASDAQ:ATYT) today introduced Xilleon™ 210VC, the world’s first digital terrestrial and Cable Plug-and-Play Television-on-Chip™. All the essential technology that goes into making a North American or Korean digital TV – the reception front-end and the video decode and display back-end – are available from ATI in the industry’s first one-chip solution.

Xilleon 210VC supports the terrestrial broadcast standard mandated by the United States Federal Communications Commission (FCC) as well as the Cable Plug-and-Play (digital cable ready) standard that was recently approved by industry and by the FCC. In addition, Xilleon 210VC supports the highest quality high-definition (HD) video decode and display and graphical user interfaces for the ultimate television viewing experience.

“Consumer demand for HD cable and terrestrial television products is unmistakable as retail sales proliferate, broadcasts increase, and industry and government come together to form standards,” said Daniel Eiref, Director of Digital Television Marketing and Business Development, ATI Technologies Inc. “Capitalizing on this momentum, consumer electronics companies are now looking for low-cost ways to integrate HD digital reception into their analog TVs. As the industry’s only single-chip solution, and with the heritage of ATI’s leadership in digital cable and terrestrial technologies, Xilleon 210VC is perfect for television manufacturers looking for a low-cost way to add HD to their TV products.”

Xilleon 210VC includes the following features:

• Demodulators for ATSC (Advanced Television Systems Committee) VSB (vestigial sideband), Digital Cable QAM (quadrature amplitude modulation), Forward Data Channel QPSK (quadrature phase shift keying), NTSC (National Television Standards Committee), and BTSC (Business Team Sound Coding);
• Conditional access, transport demultiplexers, HD MPEG-2 video decoder, digital audio decoder;
• Scalers and deinterlacers for HDTV and VCR outputs;
• 2D and 3D graphics engine for menus;
• 300 MHz MIPS™ CPU for applications and operating system; and,
• USB, flash, DVI/HDMI, IEEE1394 and other peripheral support.

For extremely cost sensitive ATSC and Clear QAM applications, the Xilleon 210V version has the same feature set as the Xilleon 210VC, but without the Cable Plug-and-Play support.

ATI Technologies will exhibit its DTV technologies at International CES 2004, booth 23045, South Hall, Upper Level, Las Vegas Convention Center. Demonstrations of Xilleon 210VC and Xilleon 210V will be available by appointment.

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 (GPU) 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).

Contact Information

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

Other ATI Contacts:
Trevor Campbell, Manager, Porter Novelli Canada, at (416) 422-7202 or trevor.campbell@porternovelli.com

For Information:
John Swinimer, Public Relations Manager, Consumer Products Division, ATI Technologies Inc., at (905) 882-2600 Ext. 8456 or swinimer@ati.com

For investor relations support, please contact:
Janet Craig, Director, Investor Relations, ATI Technologies Inc., at (905) 882-2600, Ext. 2631 or jcraig@ati.com