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ATI Supports AMD Digital Media Vision To Offer Enhanced Personal Entertainment Experiences

5 January 2006

ATI Technologies Inc. (TSX:ATY)(NASDAQ:ATYT) today announced its role as a leading provider for AMD's digital media vision for consumers in conjunction with the premier of AMD LIVE!. ATI's market leading graphics, TV/multimedia and software solutions can complement AMD LIVE! to create enhanced personal entertainment solutions for PC consumers.

As a part of AMD's digital media vision, AMD LIVE! is an initiative designed to utilize the power of the PC to interact with personal media content and other consumer electronics devices. To make this a reality, ATI is uniquely positioned to offer end-to-end solutions, including both graphics hardware and software. ATI's expertise in digital TVs, game consoles, handsets, multimedia PCs, 3D graphics and Avivo™ display solutions (featuring the forthcoming H.264), make ATI's technologies the perfect complement to AMD's efforts.

"AMD is taking the flexibility and freedom of the PC to enhance the consumer electronics experience and ATI will help us make AMD LIVE! a reality later this year," said Iain Morris, senior vice president, Digital Consumer Media and Pervasive Computing, AMD. "Whether interacting with TV, downloading music or viewing photos, AMD LIVE! will enhance the power and flexibility of full-featured multimedia desktop and notebook PCs to help deliver personalized entertainment experiences on all the screens in people's lives. Consumers will benefit from the combination of AMD64 technology, powered by ATI's great graphics, multimedia and software solutions."

"AMD and ATI have the experience and dedication to create a truly unique consumer experience," said Rick Bergman, senior vice president, PC Business Unit, ATI Technologies. "Beyond our reputation for blazingly fast games, lifelike Avivo displays and multimedia PC support, ATI is also the leader in the digital TV, game console and handset markets. AMD LIVE! experiences will provide users with the opportunity to take advantage of ATI's expertise in consumer electronics and multimedia solutions to turn unimaginable computing capabilities into an everyday reality."

ATI has a wide range of products and technologies to support upcoming AMD LIVE! solutions: digital and analog TV tuner cards, graphics cards, and complementary software solutions including the award-winning Radeon® X1000 series graphics cards and award-winning All-In-Wonder® and TV Wonder™ multimedia add-in cards.

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 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 2005 revenues of US $2.22 billion, ATI has more than 3,400 employees in the Americas, Europe and Asia. ATI common shares trade on NASDAQ (ATYT) and the Toronto Stock Exchange (ATY).

Important Information Regarding Forward-looking Statements

Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "plans," "intends," "anticipates," "should," "estimates," "expects," "believes," "indicates," "targeting," "suggests" and similar expressions.

This news release contains forward-looking statements about ATI's objectives, strategies, financial condition and results. These "forward-looking" statements are based on current expectations and entail various risks and uncertainties. Our actual results may materially differ from our expectations if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. Therefore we cannot provide any assurance that forward-looking statements will materialize. We assume no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. Additional information concerning risks and uncertainties affecting our business and other factors that could cause our financial results to fluctuate is contained in our filings with Canadian and U.S. securities regulatory authorities, including our 2005 Annual Information Form and 2005 Annual Report filed on SEDAR at www.sedar.com.

Copyright 2006 ATI Technologies Inc. All rights reserved. ATI and ATI product and product feature names are trademarks and/or registered trademarks of ATI Technologies Inc. All other company and product names are trademarks and/or registered trademarks of their respective owners. Features, pricing, availability and specifications are subject to change without notice.

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

CONTACT: For media inquiries: ATI Technologies Inc.
John Swinimer
Public Relations Manager
Consumer Products Division
(905) 882-2600, Ext. 8456
swinimer@ati.com
OR
Other ATI Contacts:
Porter Novelli Canada
Briana D'Archi
Manager
(416) 422-7166
briana.d'archi@porternovelli.com
OR
For investor relations support, please contact:
ATI Technologies Inc.
Zev Korman
Investor Relations
(905) 882-2600, Ext. 3670
zev@ati.com

Source: ATI Technologies Inc.


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