ATI's NXT2003 and NXT2004 Receiver Technology Selected by Philips RF Solutions; Tuner Technology Provides Advanced ATSC and Cable Tuner Module Family.

Business Editors & High-Tech Writers

2003 International CES

MARKHAM, Ontario--(BUSINESS WIRE)--Jan. 7, 2003

ATI Technologies Inc. (NASDAQ:ATYT)(TSX:ATY) announced today that Philips RF Solutions, a leader in Radio Frequency (RF) modules for multimedia and set-top box applications, has chosen the NXT2004(TM) VSB/QAM receiver and the NXT2003(TM) DTV Cable and Terrestrial Receiver for its latest generation of ATSC (advanced television systems committee) and cable tuners as it brings the benefits of RF-to-bits modules to the DTV market.

The tuner/demodulator products are intended for terrestrial and cable compatible digital TV (DTV), set-top box, and PC-DTV products for countries using the ATSC standard.

"As the advances in digital cable compatibility exponentially accelerate the digital television transition, we're seeing more and more consumer electronics companies searching for ways to shorten DTV product development cycles and to add cable compatibility," said Mike Gittings, Director of Digital Television Marketing, DTV/Consumer Products Group, ATI Technologies Inc. "Philips' TU1236 and TUV1236 product family meet this demand by providing manufacturers with an RF-to-bits integrated module that eliminates the need to develop discrete receiver designs. State of the art digital and analog cable reception is realized by the combination of Philips RF technology and ATI's NXT2004 and NXT2003 receiver technology.

"Additionally, while unidirectional digital cable compatibility is very important, we still see demand for terrestrial/clear QAM products that deliver quality pictures at an economical cost. By integrating the best of Philips technology with the best of ATI technology, Philips has created a family of solutions that will bring DTV to consumers quickly."

The NXT2003 and NXT2004 are the highest performance DTV solutions on the market today. The devices demonstrate superior reception performance in the presence of multipath, phase noise, impulse noise, adjacent and co-channel interference for both terrestrial and cable environments.

"Our customers have been building products that use ATI's NXT-based demodulators and Philips tuners individually for years," said Bas Slotboom, Director of Marketing and Sales, Philips RF Solutions. "Many of these customers requested that Philips and ATI work together to build this product based on ATI's NXT-based expertise in VSB technology, coupled with Philips' well-known product quality and reliability in PC-TV and STB applications. The decision for integrating NXT2003 and NXT2004 into Philips' TU1236 and TUV1236 product family was based on a combination of factors such as a very small IC footprint, good performance and excellent application support from ATI."

The TU1236 is an integrated ATSC/QAM receiver module similar in size to the NTSC modules used in the PC-TV market using the NXT2004 QAM/VSB receiver. The TUV1236 contains the same ATI technology and adds a NTSC demodulator. The TUV1236U includes VSB/QAM/NTSC and adds an Out-of-Band cable receiver that is compliant with North American cable standards. All modules incorporate Philips' proprietary RF AGC (automatic gain control) detector to ensure excellent performance, even in large signal conditions where most tuners suffer from overload. All modules also offer low power consumption and excellent performance. The TUV1236 product family is the most highly integrated ATSC/NTSC/QAM Integrated Tuner Devices (ITD) available in the market.

ATI Technologies will exhibit its DTV technologies at International CES in booth 31145 (south hall) January 9-12, 2003 in Las Vegas, Nevada.

About Royal Philips Electronics

Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies and Europe's largest, with sales of $28.8 billion (EUR 32.3 billion) in 2001. It is a global leader in color television sets, lighting, electric shavers, medical diagnostic imaging and patient monitoring, and one-chip TV products. Its 184,000 employees in more than 60 countries are active in the areas of lighting, consumer electronics, domestic appliances, components, semiconductors, and medical systems. Philips is quoted on the NYSE (symbol: PHG), London, Frankfurt, Amsterdam and other stock exchanges. News from Philips is located at www.philips.com/newscenter.

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 visual processor 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).

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