ATI's MOBILITY RADEON 9000 Mobile Visual Processor to Power the Compaq Presario 2800T by HP.

Business Editors & High-Tech Writers

MARKHAM, Ontario--(BUSINESS WIRE)--Aug. 29, 2002

World's First Mobile Graphics Solution With DirectX(R) 8.1

Programmable Pixel Shaders Sets the New 3D Performance Standard

Coinciding with the launch of the world's first mobile graphics solution with programmable pixel and vertex shaders, ATI Technologies Inc. (TSX:ATY, NASDAQ:ATYT), the number one supplier of notebook graphics worldwide, announced today that HP Corporation (NYSE: HPQ) has chosen the MOBILITY(TM) RADEON(TM) 9000 mobile visual processor for its new Compaq Presario 2800T series notebook personal computers.

The Compaq Presario 2800T with MOBILITY RADEON 9000 will begin shipping in September, and will be among the first notebook PCs to include ATI's latest mobile graphics solution, which dramatically outperforms the fastest competitive product.

The MOBILITY RADEON 9000 is the first notebook graphics solution that accelerates and 'de-blocks', or removes blocky artifacts from, Internet-streamed video, and lets users take full advantage of new business presentation software that makes use of live 3D models for more inspiring, compelling presentations. The MOBILITY RADEON 9000 is also the only mobile graphics chip that gives users the full visual experience of games that use the latest pixel and vertex shading technology, which are expected to number over 100 titles by Christmas.

"Users who want MOBILITY RADEON 9000's spectacular graphics performance and advanced 3D features will be able to place their order via HP's website by early September," said Reuven Soraya, Director of Marketing, Mobile Business Unit, ATI Technologies Inc. "We are delighted HP has moved so quickly to market with the MOBILITY RADEON 9000-powered Compaq Presario 2800T, now among the fastest, most advanced notebooks in the world."

The impressive list of features found in the MOBILITY RADEON 9000 includes:

-- Hardware support for version 1.4 programmable pixel and vertex shaders: ATI's SMARTSHADER(TM) technology takes advantage of the advanced new features in Microsoft(R) DirectX(R) 8.1 and means even the newest and most advanced 3D games will be fully supported;

-- The world's first mobile quad-pipe 3D architecture: Four parallel rendering pipelines to power the most challenging games and 3D business multimedia applications with amazing speed;

-- A significantly enhanced version of ATI's industry-leading POWERPLAY(TM) power management technology, which extends battery life in 3D applications and DVD playback and delivers improved power-to-performance ratios;

-- Industry-leading Internet video streaming: New FULLSTREAM(TM) technology leverages pixel shaders to accelerate video and improve the quality and scalability of streaming media formats.

About the Company

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 processing unit (VPU) 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 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 media or industry analyst support, visit our Web site at http://www.ati.com