ATI Licenses Sonic AuthorScript; AuthorScript Engine Enables Faster-Than-Real-Time DVD/CD Authoring for Next Generation Multimedia Video Cards.

Business Editors/High-Tech Writers

2004 International CES

LAS VEGAS--(BUSINESS WIRE)--Jan. 8, 2004

Sonic Solutions(R) (Nasdaq:SNIC) announced today that ATI Technologies Inc., (TSX:ATY)(Nasdaq:ATYT), a world leader in the design and manufacture of innovative 3D graphics and digital media silicon solutions, has licensed Sonic's AuthorScript(R), the world's leading DVD and CD formatting and burning engine, which ATI has embedded into its award-winning MULTIMEDIA CENTER software now available in ALL-IN-WONDER(R) multimedia video cards. Sonic AuthorScript adds Faster-Than-Real-Time DVD and CD authoring to the ALL-IN-WONDER line of powerful PC multimedia technologies, giving users a complete multimedia solution for capturing and burning video and TV shows to DVD and Video CD.

"Choosing Sonic AuthorScript to incorporate DVD and CD authoring into our MULTIMEDIA CENTER software allows us to bring our products to market quickly, with more features and flexibility, and with the highest level of compatibility," said Godfrey Cheng, director of marketing, multimedia products, ATI Technologies. "Sonic is known for providing the dominant solution for CD and DVD recording on the PC and with Sonic AuthorScript, we're able to seamlessly integrate robust and reliable technology that provides our users with a powerful and easy way to create and burn DVDs and CDs."

The ALL-IN-WONDER line of products features ATI's MULTIMEDIA CENTER software, which has been updated to version 8.8 and now includes DVD and CD authoring capabilities based on Sonic's AuthorScript DVD and CD formatting and burning solution. With the latest version of MULTIMEDIA CENTER, users can easily archive recorded television, video, and audio programs to the media of their choice with just a few clicks of the mouse. ATI's media authoring solution supports DVD+/-R, DVD+/-RW, and CD-R/-RW, and allows Faster-Than-Real-Time authoring that can archive a complete two-hour movie in as little as 30 minutes or less, depending on the speed of the media drive.

"We are delighted that ATI chose Sonic AuthorScript to add DVD and CD burning to their software," said Jim Taylor, general manager of Sonic's Advanced Technology Group. "Today's customers demand the ability to burn DVDs and CDs as an integral part of their multimedia experience. Sonic's disc creation technologies significantly enhance the ATI ALL-IN WONDER products as a complete multimedia solution."

About Sonic AuthorScript

Sonic AuthorScript is the world's leading engine for the creation and burning of DVDs and CDs on PCs and CE devices. Available as a software development kit (SDK) with extensive APIs, AuthorScript makes it easy for application developers to add a broad range of CD and DVD technologies into their applications, while simultaneously supporting the widest array of CD and DVD burners. A flexible solution, AuthorScript contains modules for converting video and audio data into DVD- and VCD-compliant streams, formatting and burning DVD-Video and VCD projects, data mastering on recordable CDs and DVDs, music CD ripping and burning, DVR recording and timeshifting, and DVD-Video and VCD playback. AuthorScript also includes comprehensive support for recording and editing in the DVD-VR and DVD+RW (+VR) formats.

AuthorScript has been licensed by industry-leading companies including Adobe, Time Warner, Avid, IBM, Microsoft, and Sony. It is the underlying engine in Sonic's DVD applications including Sonic MyDVD(R), Sonic DVDit!(R), and Sonic RecordNow!(TM), which are bundled by major OEMs such as Adaptec, Compaq, Dell, Fujitsu, Hewlett-Packard, Hitachi, Matrox, NEC, Panasonic, Philips, Plextor, Pioneer, Sony, ViewSonic, and many others.

Design specifications and licensing programs for AuthorScript solutions are now available from Sonic at [e-mail].

About the ALL-IN-WONDER Line of Products

With 100 percent Microsoft(R) DirectX(R) 9 support for the games of today and tomorrow, ALL-IN-WONDER users can explore stunning new worlds of cinematic gameplay with an unprecedented combination of power and performance. The video card offers long-term entertainment value with its quad-pipe architecture and high-precision cinematic shaders. The result is an amazing visual gaming experience to excite devoted gamers and casual fans alike.

Owners of ALL-IN-WONDER(R) 9600 PRO will appreciate revolutionary features such as the REMOTE WONDER II remote control unit, FM radio capability to the PC including FM-ON-DEMAND that timeshifts radio content to allow for pausing or exporting to MP3 file formats, 10 preset radio stations, station identifier editing capabilities, Dual VGA output support (on some models) that is matched with Video In and Video Out, plus TV and FM connectors.

The ALL-IN-WONDER products also include ATI's MULTIMEDIA CENTER 8.6, the industry-leading multimedia software suite, offering a full range of multimedia functions and features that include DVD burning capabilities with menu creation from a FILE LIBRARY, DVD video playback with Dolby(R) AC-3 digital audio, still picture slideshow capabilities to watch digital images on large displays, an intelligent free integrated program guide (North America only) that allows users to view and search TV listings by category, actor/performer, or date, and support for all major recording formats including DVD+/-R, DVD+/-RW, CD-R, and CD-RW.

About ATI Technologies Inc.

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 delivering leading-edge performance solutions for the full range of PC and Macintosh 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 2,200 employees in the Americas, Europe and Asia. ATI common shares trade on NASDAQ (ATYT) and the Toronto Stock Exchange (ATY). For more information, please visit http://www.ati.com.

About Sonic Solutions (NASDAQ:SNIC)

Based in Marin County, California, Sonic Solutions (http://www.sonic.com) is the world's leading developer of DVD creation software for professional, industrial, and consumer applications. With the majority of Hollywood film releases on DVD produced using Sonic's professional DVD authoring systems, Sonic technology is the studio standard for DVD authoring worldwide. Sonic's MyDVD and DVDit!(R) brands are also the most widely used DVD creation applications among consumers and video enthusiasts, and are the software of choice among the key PC and after-market drive suppliers. Sonic RecordNow!(TM) is a leading solution for audio and data mastering. Sonic AuthorScript, the DVD and CD formatting and burning engine that underlies Sonic's applications, is the most widely deployed DVD software engine and has been licensed by Adobe, AOL, Microsoft, Sony, and many others.

Forward Looking Statement

The above paragraphs of this press release may contain forward looking statements that are based upon current expectations. Actual results could differ materially from those projected in the forward looking statements as a result of various risks and uncertainties including, among others, the timely introduction and acceptance of new products, costs associated with new product introductions, the transition of products to new hardware configurations and platforms and other factors, including those discussed in the Company's annual and quarterly reports on file with the Securities and Exchange Commission. This press release should be read in conjunction with the Company's most recent annual report on Form 10-K, Form 10-Q and Registration Statement on file with the Securities and Exchange Commission, which contain a more detailed discussion of the Company's business including risks and uncertainties that may affect future results. The Company does not undertake to update any forward looking statements.

Sonic, the Sonic logo, Backup MyPC, CinePlayer, PrePlay, DVD Producer, Edit-on-DVD, NoNOISE, OpenDVD, Sonic PrimeTime, RecordNow! and Simple Backup are trademarks of Sonic Solutions. AuthorScript, AutoDVD, DVDit!, DVD Fusion, MyDVD, PrePlay, ReelDVD, Scenarist, Sonic DVD Creator and Sonic Solutions are registered trademarks of Sonic Solutions. All other company or product names are trademarks of their respective owners and, in some cases, are used by Sonic under license. Specifications, pricing and delivery schedules are subject to change without notice.