ATI's IMAGEON -TM- 100 Now Available In Toshiba PocketPC e740.

Business Editors/High-Tech Writers

MARKHAM, Ontario--(BUSINESS WIRE)--June 17, 2002

The Industry's Most Advanced Display Co-processor

Powers New PDA for Consumers and Mobile Professionals

ATI Technologies Inc. (TSX:ATY) (NASDAQ:ATYT) today announced that IMAGEON(TM)100, the most advanced display co-processor for handheld electronic devices, is now powering the Toshiba PocketPC e740. As a unique graphics accelerator, IMAGEON 100 is designed to provide a rich multimedia experience and the best visual quality for a variety of feature rich PDA (personal digital assistant) devices.

Toshiba PocketPC e740 features the Intel(R) PXA250 processor at 400MHz, 64MB RAM, 16-bit color reflective TFT (thin-film transistor) screen, Pocket PC 2002, integrated Wi-Fi(TM) (IEEE 802.11b) wireless connectivity, a CompactFlash(R) II slot and a SecureDigital(TM) slot.

IMAGEON 100 is the first video graphics product for handheld devices that includes support for an advanced 2D graphics engine, MPEG-4 decoding (the standard for wireless streaming video) and an LCD timing controller among other features. It offers the best visual experience for end users while reducing the overall system power consumption for a longer battery life.

"Toshiba PocketPC e740 users will benefit from the rich graphics solution provided by ATI's IMAGEON 100," said Oscar Koenders, vice president of worldwide product planning, Toshiba Computer Systems Group. "Higher frame rates and crisper displays, coupled with longer battery life, result in a better experience and productive usage for Toshiba PocketPC e740 users. ATI's leadership in quality graphics performance is a definite plus for Toshiba's new PDA."

IMAGEON 100 provides many benefits to the mobile professional including: enhanced 2D graphics engine for fast animation and fast drawing to the screen; MPEG-4 and JPEG decoding that scales to higher resolutions panels with no visual artifacts; integrated memory with support of double buffering of images for higher quality graphics and video; and power management to optimize power consumption without compromising performance.

"ATI has helped Toshiba deliver advanced graphics and increased battery life to the consumer and mobile professional with IMAGEON 100," said Azzedine Boubguira, Director of Marketing, Handheld Products Group, Consumer Products Division, ATI Technologies Inc. "IMAGEON 100 benefits the Toshiba PocketPC e740 by assisting the CPU activity to optimally handle the graphic functions and control the display, which means significantly lower power consumption and more time for PDA use between recharges."

In addition, an innovative solution by ATI gives Toshiba e740 users the option of connecting seamlessly to an external projector or a large monitor through an attachment called the "Expansion Pack" and a powerful software application called the "ATI Presentation Pack". This solution allows the mobile professional to convert any presentation slides or other images and project them on an external LCD projector or monitor.

Company background

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 delivers leading-edge performance solutions for the full range of PC and Mac desktop and notebook platforms, workstation, set-top box, game console and handheld markets. With 2001 revenues in excess of US $1 billion, ATI has more than 1,900 employees in the Americas, Europe and Asia. ATI common shares trade on NASDAQ (ATYT) and the Toronto Stock Exchange (ATY).

Copyright 2002 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 Information:
John Swinimer, Public Relations Manager,
Consumer Products [phone], Ext. 8456 or [e-mail]

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

Pedro Cabezuelo, Media Relations, Benchmark Porter Novelli at (416)
422-7164 or [e-mail]

Anne Ferguson, Senior Counselor, Benchmark Porter Novelli, at (416)
422-7154 or [e-mail]

For investor relations support, please contact:
Janet Craig, Director, Investor Relations, ATI Technologies Inc.,
at [phone], Ext. 2631 or [e-mail]

                         ATI TECHNOLOGIES INC.
                     1 Commerce Valley Drive East
                    Markham, Ontario Canada L3T 7X6
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                              www.ati.com