ATI TECHNOLOGIES ANNOUNCES THIRD QUARTER 1995 RESULTS.

THORNHILL, ONTARIO--(BUSINESS WIRE)--JULY 5, 1995--ATI TECHNOLOGIES INC. (TSE:ATY) ATI Technologies Inc. announced today sales of $95.6 million for the third quarter ended May 31, 1995, compared with sales of $51.6 million for the third quarter of fiscal 1994. The Company reported net income of $2.8 million ($0.06 per common share), compared with a net loss of $7.4 million ($0.16 per common share), after a one-time inventory write down of $11.5 million for the same period last year.

Sales for the nine months ended May 31, 1995 were $261.5 million, compared with sales of $171.5 million for the same period last year. Net income for the first nine months of 1995 was $12.8 million ($0.27 per common share), compared with net income of $215,000 ($0.01 per common share) for the first nine months of 1994. The average number of shares outstanding increased from 44.8 million at May 31, 1994 to 47.3 million at May 31, 1995.

Gross margins as a percentage of sales in the third quarter and year-to-date in fiscal 1995 improved relative to fiscal 1994, but remained below historical levels due to: i) higher sales, as a percentage of total sales, to the increasingly competitive OEM market; and ii) the adverse impact of the increased cost of memory components on ATI's board level business, caused by the world-wide under-supply situation. These conditions are expected to continue in the fourth quarter. The sell through of mach32 products was substantially completed by the end of the third quarter.

Selling, general and administrative costs were approximately 12 percent of sales for the first three quarters of 1995, compared to 16 percent of sales in 1994.

In August 1995, ATI expects to begin volume shipping of the ATI- 264CT - the first commercialization of the Company's integrated chip technology. The new integrated CT component will replace part of ATI's existing mach64 product line and will establish ATI as a supplier to the value-priced, high volume component market.

In line with ATI's strategic plan to increase market penetration and expand its customer base, the Company announced the XCLAIM GA graphics accelerator in June 1995. The XCLAIM GA is the Company's first product for Apple's new PowerPC platforms and uses the Company's acclaimed mach64 controller on a PCI local bus board. ATI also announced an OEM contract to supply graphics accelerators -- similar to the XCLAIM GA -- for Apple's new Power Macintosh 9500/120 systems. ATI is the first company to supply a PCI-based graphics card to Apple Computer, Inc.

ATI is a leading manufacturer of graphics and multimedia video enhancement products and components for personal computers. The Company employs over 600 people in its Thornhill, Ontario head office and offices worldwide. ATI's product line is sold through an international network of computer manufacturers and leading computer distributors.

ATI TECHNOLOGIES INC.

              (Thousands of dollars, except per share amounts)
                       Three Months Ended May 31
                        1995                    1994
-------------------------------------------------------------
Sales             $95,594  100.0 percent $51,588 100.0 percent
Cost of
 goods sold        75,564   79.0 percent $50,293  97.5 percent
                  -------                 -------
Gross margin       20,030   21.0 percent   1,295   2.5 percent

Expenses
 Selling            5,953    6.2 percent   3,974   7.7 percent
 Research and
  development       5,601    5.9 percent   4,482   8.7 percent
 Administrative     4,454    4.7 percent   4,310   8.3 percent
 Interest             121    0.1 percent     186   0.4 percent
                    -----                    ---
                   16,129   16.9 percent  12,952  25.1 percent

Other income          264    0.3 percent     542   1.1 percent
                      ---                    ---
Income (loss) before
 income taxes       4,165    4.4 percent (11,115)(21.5)percent
Income taxes
 (recovery)         1,400    1.5 percent  (3,742) (7.2)percent
                    -----                 -------
Net income (loss)  $2,765    2.9 percent ($7,373)(14.3)percent
                    -----                 -------
Earnings per share  $0.06                 ($0.16)

              (Thousands of dollars, except per share amounts)
                        Nine Months Ended May 31
                        1995                    1994
-------------------------------------------------------------
Sales            $261,521  100.0 percent $171,549 100.0 percent
Cost of
 goods sold       198,128   75.8 percent $132,353  77.2 percent
                  -------                 -------
Gross margin       63,393   24.2 percent   39,196  22.8 percent

Expenses
 Selling           16,896    6.5 percent   13,293   7.7 percent
 Research and
  development      15,026    5.7 percent   11,931   7.0 percent
 Administrative    12,797    4.9 percent   14,581   8.5 percent
 Interest             607    0.2 percent     632    0.4 percent
                    -----                    ---
                   45,326   17.3 percent  40,437   23.6 percent

Other income        1,409    0.5 percent   1,559    0.9 percent
                    -----                  -----
Income (loss) before
 income taxes      19,476    7.4 percent     318    0.2 percent
Income taxes
 (recovery)         6,670    2.5 percent     103    0.1 percent
Net income (loss) $12,806    4.9 percent    $215    0.1 percent
                    -----                 -------
Earnings per share  $0.27                  $0.01

CONTACT: ATI Technologies Inc.

Lance McIntosh, 905/882-2600, ext. 8306