ATI Introduces MOBILITY RADEON 7500 - World's Fastest Mobile Graphics Processor Also Significantly Extends Notebook Battery Life.

Business Editors/High-Tech Writers

MARKHAM, Ontario--(BUSINESS WIRE)--Aug. 27, 2001

ATI Technologies Inc. (TSE:ATY, NASDAQ:ATYT), the world's number one notebook graphics vendor, today unveiled the MOBILITY(TM) RADEON(TM) 7500, ATI's next-generation mobile graphics processor and the most powerful, feature-rich mobile solution in the world.

The MOBILITY RADEON 7500 delivers almost twice the performance of its nearest competitor on a range of industry standard benchmark tests, according to a study by Inquest Market Research(1). MOBILITY RADEON 7500 is also the first mobile GPU (graphics processor unit) to support 128-bit DDR (double data rate) memory - double the current standard and, therefore, dramatically raising the bar for notebook 3D performance.

When operated in power-saving mode using ATI's ground-breaking POWERPLAY(TM) voltage and frequency scaling technology, the new chip consumes less than half a watt in a light usage scenario. ATI's unique POWERPLAY technology, which further refines ATI's industry-leading power management technology, produces the lowest power consumption levels in typical 2D, 3D and DVD (digital versatile disc) modes. For example, POWERPLAY extends DVD playback on battery power by up to 25 percent, enabling, for example, full playback of feature-length movies. POWERPLAY modulates clock speeds and voltage settings automatically when users switch between AC (alternating current) and battery operation, and includes the option of user-selectable voltage/frequency scaling, which allows for maximum-performance even when running off battery power.

"The MOBILITY RADEON 7500 is an unprecedented leap forward in mobile graphics performance, video features and power saving technology," said Phil Eisler, Vice President and General Manager, Mobile and Integrated Business Unit, ATI Technologies Inc. "With ATI's POWERPLAY technology, notebook users with the MOBILITY RADEON 7500 will now be able to enjoy extended battery life when watching DVDs, playing 3D games or working in Microsoft Office."

MOBILITY RADEON 7500 also extends ATI's leadership in integrating key mobile features and components directly into the graphics processor. This saves ATI's OEM (original equipment manufacturer) customers vital motherboard space, while reducing power consumption and cost, contributing to thinner and lighter designs with the highest available performance. MOBILITY RADEON 7500 incorporates an integrated TV-out encoder, TMDS (transmission minimized differential signaling) transmitter for connection of DVI (digital video interface) flat panels, iDCT (inverse discrete cosine transform) and motion compensation as well as spread spectrum. MOBILITY RADEON 7500 is available with up to 32MB integrated memory of 64MB external DDR memory.

"We are entering the next generation of mobile GPUs, and ATI's MOBILITY RADEON 7500 delivers a performance and feature set that put it in a class by itself," said Bert McComas, Inquest Market Research. "The MOBILITY RADEON 7500 packs serious desktop punch into a mobile configuration."

The MOBILITY RADEON 7500 offers video feature enhancements never before seen on a mobile processor, including adaptive per-pixel de-interlacing technology, which dramatically improves vertical resolution and eliminates twitter and feathering artifacts during DVD playback. It also incorporates the following advanced feature set:

-- HydraVision(TM), which affords the MOBILITY RADEON 7500 the most advanced
multi-monitor management software in the industry. HydraVision allows users to
define up to nine multi-monitor configurations. Work can be spread across the
entire workspace or applications can be configured to one monitor or the other.
Favorite features can be assigned hot keys for instant access;

-- CHARISMA ENGINE(TM), which combines the industry's fastest geometry engines
with revolutionary techniques for bringing 3D characters to life. The geometry
engine supports full transformation, clipping and lighting at 40 million
triangles per second processing capability. CHARISMA ENGINE supports
cutting-edge character animation features such as advanced vertex skinning and
key frame interpolation;

-- PIXEL TAPESTRY(TM), which combines the industry's fastest rendering engines
with an unprecedented set of 3D special effects. The chip's ability to process
up to three textures concurrently means unsurpassed performance in accelerating
the coming wave of multi-textured game content. Because of its rendering
capability, MOBILITY RADEON 7500 enables full performance in 32-bit color,
making 16-bit color obsolete; and

-- VIDEO IMMERSION(TM), which advances ATI's historic leadership in digital
video with such features as on-chip motion compensation, iDCT and adaptive
de-interlacing. The RADEON 7500 incorporates advanced video technology
inherited from ATI's video-oriented set-top box and consumer electronics
products. MOBILITY RADEON 7500 is capable of decoding and displaying MPEG-2
content in all HDTV (high definition television) formats, including 1280 X 720
pixels progressive and 1920 X 1080 pixels interlaced.

-- HYPER Z(TM) technology, which boosts effective memory bandwidth by 20
percent. As a result, the MOBILITY RADEON 7500 can access up to 8.8GB/sec
(gigabytes per second) of effective memory bandwidth. With memory bandwidth
increasingly becoming the largest barrier to performance in today and
tomorrow's most advanced applications, the combination of HYPERZ and high speed
DDR memory is crucial to realizing the full potential of the graphics
processor.

Company Background

Founded in 1985, ATI Technologies Inc. is a world leader in the supply of graphics, video and multimedia solutions for personal computer and Mac platforms. The pioneer, innovator and market leader in the graphics industry, ATI provides cutting-edge technologies for the PC, workstation, 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).

(1) www.inqst.com

To view an image of ATI's MOBILITY(TM) RADEON(TM) 7500, please visit www.e-newsservices.com

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.

For media or industry analyst support, please visit our Web site at http://www.ati.com or contact:

Chris Hook, Public Relations Manager, Mobility, at [phone], Ext. 8477 or [e-mail]

Marylynn Miller, Counsellor, BenchMark Porter Novelli, at [phone] or [e-mail]

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

Anne Ferguson, Senior Counsellor, BenchMark Porter Novelli, at [phone] or [e-mail]

For investor relations support, please contact:

Janet Craig, Director, Investor Relations, ATI Technologies Inc., at [phone], Ext. 2631 or [e-mail]