ATI Leads High-Definition Video Transition On PCs

ATI Technologies Inc. (TSX:ATY)(NASDAQ:ATYT) solidifies its PC video and display leadership with the first public demonstration of high-definition H.264 video playback with hardware acceleration on the PC platform. H.264 is the video compression standard that will be used in the next generation high-definition video players such as Blu-ray and HD-DVD. The ATI H.264 video demonstration with ATI's next generation Radeon(R) technology will occur during Computex Taipei 2005 at the Grand Hyatt Hotel.

H.264 is a new video compression standard that's designed to have two to three times the compression efficiency of current schemes such as MPEG-2, while simultaneously improving overall image quality. This increased compression efficiency is highly computationally demanding, therefore graphics hardware assistance is crucial for real-time decoding of high bit-rate video. Working with industry leaders including CyberLink Corp., ATI's Radeon graphics acceleration technology meets the high-definition and computational demands of H.264.

"Consumers are clamoring for the amazing visual quality that Blu-ray and HD-DVD will bring to PCs," said Rick Bergman, Senior Vice President, PC Business Unit, ATI Technologies. "ATI is transforming the PC video landscape by leading the industry adoption of Blu-ray and HD DVD on the PC. This new innovation builds upon ATI's unrivaled video and display technologies."

The ATI demonstration at Computex features H.264 playback with Radeon technology and a CyberLink video player application. In addition to hardware acceleration of H.264, the Radeon processor is performing next generation video processing and showing off advanced display capabilities.

ATI will exhibit PC video and graphics innovations from May 31 to June 4, in the Regency Ballroom-1F, at the Grand Hyatt Hotel, Taipei, Taiwan.

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 graphics 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 device markets. With 2004 revenues of US $2 billion, ATI has more than 2,700 employees in the Americas, Europe and Asia. ATI common shares trade on NASDAQ (ATYT) and the Toronto Stock Exchange (ATY).

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