ATI Acquires HydraVision Software From Appian.

Business Editors

MARKHAM, Ontario & REDMOND, Wash.--(BUSINESS WIRE)--July 30, 2001

Company purchases multi-monitor application for (US) $2 million

ATI Technologies Inc. (TSE:ATY, and NASDAQ: ATYT), a world leader in the supply of graphics, video and multimedia solutions, and Appian Graphics Corporation, a pioneer in the development of multiple monitor hardware and software solutions, today announced that ATI has acquired Appian's HydraVision(TM) desktop management software and technology for (US) $2 million.

Under the terms of the agreement, ATI has acquired ownership of HydraVision desktop management software and related technologies, several multi-monitor related patents and the HydraVision trademark. In addition, ATI has hired several Appian Graphics employees to develop future enhancements to HydraVision software.

The companies have also renewed a sales and distribution agreement they originally entered into in November 2000. Under this agreement, Appian Graphics will sell ATI products bundled with HydraVision software into the professional multi-monitor markets, including financial trading floor systems, audio and video editing systems, professional mapping systems and point-of-sale systems.

HydraVision desktop management software provides users with an interface for simplified management of multiple displays. HydraVision software features include window and dialog box control, hot-key shortcuts, independent resolutions and refresh rates, independent application control, and up to nine virtual desktops. HydraVision software has been integrated with ATI's technology-leading RADEON(TM) graphics processor family and will also be a key component of future ATI graphics products.

"In the nine months that HydraVision desktop management software has been a part of our industry-leading RADEON graphics technologies, we have experienced considerable customer acceptance of this solution," said Rick Bergman, Senior Vice President, Marketing, & General Manager, Desktop Marketing, ATI Technologies Inc. "Given that scenario and the fact that demand for this type of graphics solution is growing in the mainstream commercial and consumer markets, the decision to acquire HydraVision provides ATI with a key differentiator."

"The sale of HydraVision software technology to ATI will enable Appian Graphics to focus on our core competency - marketing multiple monitor hardware and software solutions to our customers," said Wallace Smith, Chairman & Chief Executive Officer, Appian Graphics Corporation. "This sale now provides us with an unbeatable solution for those customers - HydraVision software on an industry-leading ATI graphics platform."

"The HydraVision Desktop Management Software application was an excellent product right out of the gate, garnering 50 percent marketshare in just three years since Appian began marketing it in 1998," said Dr. Jon Peddie, President, Jon Peddie Associates. "Given the type of customer it is directed towards, bundling it with ATI's graphics processor products, which have a strong mainstream commercial following themselves, is a natural."

Company Backgrounds

Appian Graphics is the market leader for designing, manufacturing and marketing hardware, software and technology solutions to enable users to become more productive through expanded desktop space and multi-display devices. Appian dominates the multiple monitor industry with nearly half the market share, as reported in Jon Peddie Associates' April 1999 multi-monitor study. The company's solutions have been recognized by world-renowned technology leaders such as Compaq Computer Corp., Hewlett-Packard Co., IBM Corp., Dell Computer Corp. and Microsoft Corp. Additional information about the Redmond, Washington-based company can be found on the World Wide Web at www.appian.com.

Founded in 1985, ATI Technologies Inc. is a world leader in the supply of graphics, video and multimedia solutions for the personal computer and Mac platforms. The pioneer, innovator and market leader in the graphics industry, ATI provides cutting-edge technologies for the PC, set-top box, game console and other consumer appliances markets. The Company has more than 1,900 employees supporting customers from its headquarters in Markham, Ontario, Canada, as well as from offices in Barbados, France, Germany, Hong Kong, Ireland, Japan, Malaysia, the United Kingdom and the United States. ATI common shares trade on NASDAQ (ATYT) and the Toronto Stock Exchange (ATY).

Appian Graphics is a registered trademark of Appian Graphics. AppianX, Appian Hurricane, Appian Jeronimo, Appian Gemini, Appian Traveler, AppianXtras, AppianDX, AppianRotate, AppianSync, AppianColor, AppianMode and HydraThread are trademarks of Appian Graphics. Appian software programs and Appian hardware devices are covered by one or more United States patents. Additional patents are pending. All other trademarks are the property of their respective owners. (C) 2001, Appian Graphics.

Copyright 2001 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.

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Brian Chadderton, Senior Public Relations Counsel, ATI Technologies Inc., at [phone], Ext. 8350 or [e-mail]

John B. Challinor II APR, Director, Public Relations, ATI Technologies Inc., at [phone], Ext. 8815 or [e-mail]

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