ATI Unveils SMARTSHADER Technology.

Business Editors, High-Tech Writers

MARKHAM, Ontario--(BUSINESS WIRE)--July 16, 2001

Provides next big step in realism and image quality for PCs

and Macs, gives game developers freedom to design greater

range of visual effects

ATI Technologies Inc. (TSE:ATY, NASDAQ:ATYT), a world leader in the supply of graphics, video and multimedia solutions, today unveiled SMARTSHADER(TM) technology, a next-generation graphics architecture that will narrow the gap in visual quality between the "big screen" and the "computer screen" by affording game developers the most advanced visual effects available on PC or Mac-based platforms.

Incorporating suggestions from leading 3D application developers and researchers, ATI collaborated with Microsoft Corporation to improve the versatility, efficiency and usability of the existing Microsoft DirectX 8.0 Pixel Shader and Vertex Shader specifications, enabling 3D game developers to easily custom-program and then create the most finely-detailed and realistically-lit computer-generated images possible. The results of these efforts are available to developers for the first time with the release of DirectX 8.1, which enables the full capabilities of SMARTSHADER technology. The full feature set is also available in OpenGL(R), using extensions developed by ATI. "Developers of 3D applications have always had a difficult time creating truly realistic computer-generated characters, objects and environments in computer games," said Toshi Okumura, Senior Product Manager, Desktop Marketing, ATI Technologies Inc. "This is a result of limited processing power and restricted flexibility found in existing graphics hardware.

"By combining the speed and optimizations of a dedicated graphics processor with the flexibility and programmability of a CPU, SMARTSHADER technology provides a virtually limitless range of visual effects at interactive frame rates."

SMARTSHADER technology incorporates major advances in the area of Pixel Shaders, which are small programs that execute on every pixel rendered to the display device. With support for up to six textures in a single rendering pass, the memory bandwidth constraints associated with multi-pass rendering can be greatly reduced, which translates into better rendering performance. By doubling the maximum allowable length of the shader programs, more complex effects can be created to accurately model the visual properties of materials and surfaces, including hair, skin, wood, water and more. Additionally, SMARTSHADER Pixel Shaders introduce a simplified yet more powerful instruction set that lets developers design a much wider range of graphical effects with fewer operations.

SMARTSHADER technology also includes support for Vertex Shaders, which are small programs that are executed on the vertices that form the building blocks of all 3D objects. These shaders can actually modify the shape and position of objects and are useful for handling advanced character animation, objects that bend and ripple like cloth or water, particle effects like sparks and rain, and much more.

"The programmability and intelligent design of SMARTSHADER technology will substantially reduce the time it takes to bring innovative new graphics to the end-user," said Mr. Okumura. "Developers will no longer have to wait for new graphics hardware or new versions of their preferred graphics API (application programming interface); they can now easily write a shader to implement their new creative ideas."

Company Background

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

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: Patricia Macdonald, Public Relations Manager, Desktop, ATI Technologies Inc., at [phone] Ext. 8809 or [e-mail] Derek Baker, 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]