ATI Technologies Licenses the MIPS Architecture From MIPS Technologies, Inc.

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--June 1, 1999--

World's Largest Supplier of 3D Graphics and Multimedia

Technology to use MIPS(R) Architecture to Further Enhance

its Industry-leading Video Capabilities

MIPS Technologies, Inc. (Nasdaq:MIPS) and ATI Technologies Inc. (TSE:ATY, Nasdaq:ATYT), announced today that ATI has licensed the MIPS(R) architecture to further enhance the digital video capabilities of its industry-leading graphics and multimedia technology.

According to recent market research from PC Data, ATI is the world's largest vendor of computer graphics and multimedia products and holds 46 percent of the US graphics distribution market. MIPS Technologies is the world's primary architect of 32- and 64-bit embedded processor technology. MIPS Technologies licensees are the only companies today shipping 64-bit embedded processors, in volume, for digital consumer products.

"ATI is actively diversifying its product line, based on our core competencies in graphics and multimedia products," said Adrian Hartog, vice president and general manager, components division, ATI Technologies Inc. "We intend to be a major force in important emerging markets like set top boxes and consumer computing devices, and our licensing agreement to use the MIPS(R) architecture provides ATI with another key building block that will make us a world leader in these new markets."

"ATI is a leader in consumer graphics and as such is an excellent fit as a strategic partner of MIPS Technologies," said John Bourgoin, president and CEO of MIPS Technologies, Inc. "Teaming with ATI will enable the MIPS(R) architecture to strengthen its drive to penetrate the set top box and other consumer devices."

MIPS Technologies, Inc.

MIPS Technologies, Inc. drives a broad architectural alliance that is currently delivering 32- and 64-bit embedded RISC solutions. Its 64-bit architecture is being used in products such as game consoles, set-top boxes, high end printers and enterprise networking. The company licenses its intellectual property to semiconductor manufacturing companies, ASIC developers, and system OEMs.

MIPS Technologies, Inc. and its licensees offer a wide range of robust, scalable processors in standard, custom, semi-custom and application-specific products. Developers can choose from a broad menu of price/performance options that include execution units, clock speeds, instruction widths (16-, 32- or 64-bit), cache sizes, memory bandwidths, memory protection schemes, system interfaces, and on-chip system logic.

Numerous companies utilize MIPS Technologies' intellectual property. MIPS Technologies, Inc. is based in Mountain View, and can be reached at 650/567-5000 or http://www.mips.com.

ATI Technologies Inc.

ATI Technologies Inc., the world's largest supplier of 3D graphics and multimedia technology, designs, manufactures and markets innovative and award-winning multimedia solutions and graphics components for the personal computer, set-top box and consumer electronics appliance markets.

An ISO 9002 company, ATI is the world's leading supplier of video and 2D/3D graphics accelerators to OEM and retail customers. Founded in 1985, ATI employs more than 1,600 people at headquarters in Thornhill, Ontario, and in offices in the United States, Germany, France, the United Kingdom, Ireland, Barbados, Malaysia, Japan and Hong Kong. ATI is a public company whose shares trade on the Toronto Stock Exchange and NASDAQ.

Note to Editors: MIPS is a registered trademark and MIPS-based is a trademark of MIPS Technologies, Inc. All other trademarks are the property of their respective companies. All press materials are available on the World Wide Web via: http://www.mips.com/