ATI's Avivo'TM' Video Converter Gets PC Video onto Your Portable Player-in Record Time.

MARKHAM, Ontario -- Avivo(TM) Video Converter can convert PC-based videos for play on your portable player in the time it takes to enjoy your morning coffee

The Avivo(TM) Video Converter from ATI Technologies Inc. (TSX:ATY)(NASDAQ:ATYT) dramatically reduces the "wait time" users experience when converting a PC-based video of their favorite show or home movie for play on today's portable video players. In less than 5 minutes(i), the Avivo(TM) Video Converter can convert 30 minutes of video into a format playable by today's more popular portable video devices. When compared to alternative solutions, the Avivo Video Converter is more than six times faster(ii), making it the new standard for high-performance conversion.

The Avivo Video Converter is available today, as a wizard found within Catalyst(R) Control Centre 6.3, a software package designed to enhance ATI's Radeon(R) X1000 series of graphics cards. The Avivo Video Converter simplifies the conversion of digital video from one file format to another and enables even a novice user to quickly and easily convert their videos to play on an industry standard DVD/DivX(R) player or portable media devices such as the Apple(R) iPod(R), Sony(R) PSP(TM), Creative(R) Zen(TM) and many others.

"Catalyst demonstrates ATI's ongoing commitment to our customers to ensure the best experience with ATI products," said Ben Bar-Haim, Vice President, Software Engineering Division, ATI Technologies. "The addition of the Avivo Video Converter wizard will allow our customers to spend less time converting and more time enjoying their favorite videos - a considerable productivity improvement as portable video players increase in popularity."

The Avivo Video Converter accepts almost any video file format as a source and outputs in most popular video formats. Users running the wizard simply select the input and then output file format, set the quality level, and choose a file location for their newly converted video files -- the Avivo Video Converter does the rest.

Catalyst 6.3, which includes the Avivo Video Converter, will be available for download at www.ati.com beginning today and is supported by ATI's Radeon X1000 series of graphics cards.

For more information about the Avivo Video Converter, please visit the ATI website at http://www.ati.com/technology/avivovideoconverter/index.html .

About ATI Technologies

ATI Technologies Inc. is a world leader in the design and manufacture of innovative 3D graphics, PC platform technologies 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 fiscal 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).

(i) Performance measured on a Pentium M 780 (2.26GHz), 1GB memory. Input: 30 minute MPEG-2 Output: Apple(R) iPod(R), H.264 format Actual time: 4:36 (mm:ss)

(ii) Performance measurement independently confirmed by Beyond3D.

Important Information Regarding Forward-looking Statements

Certain statements in this news release, including but not limited to the performance of the Avivo Video Converter and the increasing popularity of portable video players, may be considered "forward-looking". Such forward-looking statements are based on current expectations, including the expected rate of growth of the PC and Consumer markets, our overall competitive position and the competitiveness of our products, and, accordingly, entail various risks and uncertainties. Risks that could cause actual results to differ materially from such forward-looking statements include potential software or hardware-related issues or conflicts, the impact of new products or technologies, and consumer demand for portable video players. We therefore cannot provide any assurance that such 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 actual results to differ materially from any forward-looking statement 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. Our Form 40-F and other filings we make with the U.S. Securities and Exchange Commission are available on EDGAR at http://www.sec.gov/.

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

ATI Technologies Inc. (TSX:ATY) (NASDAQ:ATYT)