ATI Delivers More Than 10 Million DTV Chips, Confirming Role As Leading Technology Provider For Integrated High Definition TVs.

MARKHAM, Ontario -- ATI grows IDTV shipments by estimated 75 percent

ATI Technologies Inc. (TSX:ATY)(NASDAQ:ATYT) announced today that its Digital Television Business Unit has shipped more than 10 million chips destined for HD IDTVs (High Definition Integrated Digital Televisions). In calendar 2005 ATI expects to grow IDTV unit shipments of its Theater(TM) and NXTWave(TM) demodulators and Xilleon(R) MPEG decoders and display processors by approximately 75 percent over 2004. This year over year growth confirms ATI's position as the leading technology provider for HD IDTVs.

ATI's NXT, Theater and Xilleon lines of chips are offered today in a wide variety of consumer electronics devices, including HD TVs and set-top boxes from the following manufacturers:

ALPS                Kreatel                   Sony
Changhong           Mitsubishi                TiVo
Coship              Matsushita (Panasonic)    Toshiba
Funai (Sylvania)    Philips                   Thomson
Hisense             Scientific-Atlanta        TTE (RCA)
Hitachi             Samsung                   USDTV
JVC                 Sharp                     Xoceco (PRIMA)

"Once again 2005 was a year in which ATI lead the industry in shipments of components for IDTVs," said Daniel Eiref, director of marketing for DTV products, ATI Technologies Inc. "However, more importantly 2005 was a year in which we responded to our customers' requests for the best in analog and digital reception, exceptional image processing technology, and the most versatile and robust software stacks. With ATI's introduction of products like Xilleon(R) 240, Theater(TM) 314, and CARD we believe our customers are in a position to have a banner 2006."

ATI offers consumer electronics manufacturers a wide variety of components and software. Products include:

- Xilleon(R) 240 - the industry's most highly-integrated TV-on-Chip(TM) with VSB, NTSC, MPEG decoder and display processing,

- Xilleon(R) 226 - dual high-definition MPEG decoder with integrated display processor,

- Theater(TM) 311, Theater(TM) 312 and Theater(TM) 314 - a family of products that deliver outstanding high-definition TV signal reception,

- Theater(TM) 350 - DOCSIS 2.0 modem for OCAP(TM) TVs,

- NXT2003(TM)/NXT2004(TM)/NXT2005(TM) - cost-effective VSB/QAM/OpenCable reception,

- CARD - a complete hardware/software solution for manufacturers building ATSC(TM) and OpenCable(TM) TVs.

ATI will be exhibiting its DTV solutions at International CES 2005 at booth 30779 at the South Hall, Upper Level, Las Vegas Convention Center, January 5 to 8, 2006.

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 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 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).

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This news release contains forward-looking statements about ATI's objectives, strategies, financial condition and results. These "forward-looking" statements are based on current expectations and entail various risks and uncertainties. Our actual results may materially differ from our expectations if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. Therefore we cannot provide any assurance that 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 our financial results to fluctuate 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.

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