ATI Develops HyperMemory Technology to Reduce PC Costs.

MARKHAM, Ontario -- HyperMemory uses PCI Express to enable maximum graphics processing performance while lowering overall PC cost

ATI Technologies (NASDAQ:ATYT) (TSX:ATY) today announced HyperMemory, an innovative technology that reduces PC system costs by allowing its visual processors to use system memory for graphics processing. HyperMemory uses the high-speed bi-directional data transfer capabilities of PCI Express to store and access graphics data in system memory, leading to less of a dependence on graphics memory and ultimately a lower overall system cost.

Under previous interconnect standards, the data transfer between the visual processor and the CPU was not fast enough for real-time graphics applications, so graphics cards have shipped with up to 256 MB of dedicated graphics memory to store textures and rendering data required by the graphics processor. HyperMemory gives ATI and its board partners the option to deliver cards with less on-board memory and instead use system memory to handle the graphics storage requirements. The result is a lower overall PC cost for the same great graphics performance.

HyperMemory uses intelligent memory allocation algorithms to optimize the use of available local memory and ensure critical components are placed in fast local memory when required. Optimal assignment of data to local or system storage is determined dynamically to ensure the best user experience. HyperMemory also increases the performance of system bus data transfers, making accessing system memory faster than ever before.

Graphics cards featuring HyperMemory technology will be announced later this year. For more information about ATI's current products and technologies, please visit www.ATI.com.

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 2003 revenues in excess of US $1.3 billion, ATI has more than 2,700 employees in the Americas, Europe and Asia. ATI common shares trade on NASDAQ (ATYT) and the Toronto Stock Exchange (ATY).

Copyright 2004 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