ATI and SK Telecom To Cooperate On the Next Generation 3D Content Service Platform.

Business Editors/High-Tech Writers

MARKHAM, Ontario & SEOUL, Korea--(BUSINESS WIRE)--March 12, 2004

ATI Graphics Technology to Provide SK Telecom's Customers with the

Ultimate 3D Gaming Experience

ATI Technologies Inc. (TSX:ATY) (NASDAQ:ATYT) and SK Telecom Co., Ltd (NYSE:SKM) (KOSPI:SKTELECOM) announced that they have signed an agreement to jointly develop the 3D content service platform named GIGA (Graphic Instruction Graphic Acceleration) and work closely with SK Telecom selected cellular phone manufacturers and 3D content developers.

The GIGA specifications will be based on industry standards, or de facto standards such as OpenGL ES, and released to cellular phone manufacturers, content developers and other collaborators in the wireless service marketplace.

Cellular phones designed for GIGA platform are to be powered by ATI's IMAGEON(TM) 2300 series multimedia processor that provides outstanding 3D graphics performance for consumers to enjoy the ultimate 3D gaming experience. SK Telecom is planning to launch the 3D game service in early Q4 of this year in Korea and is currently in the process of selecting manufacturers to build the cellular phones for the service.

"Thanks to the dedicated hardware 3D acceleration in the IMAGEON processor, users of GIGA service will experience on cellular handsets the similar visual quality and 3D gaming performance they have had on PCs and game consoles," said Dr. Wonhee, Sull, Vice President of Platform R&D Center, SK Telecom.

"Achieving realistic 3D graphics performance in cellular phones with minimum power consumption was one of the key design considerations of our handheld products," added Adrian Hartog, Executive Vice President & General Manager, Consumer Product Division, ATI Technologies. "We took the world leading technologies from our proven notebook graphics experience and further enhanced them for the IMAGEON series chips. We are very excited that SK Telecom is recognizing our technology leadership."

"SK Telecom is one of the most advanced mobile carriers in the world. They have successfully launched many cutting edge services in the past and I am certain that this 3D content service will be another success story in the mobile industries. Together with handset manufacturers and content providers for this service, we can expand our cooperation into other marketplaces beyond Korea," said K.Y. Ho, Chairman and CEO of ATI Technologies.

About SK Telecom

SK Telecom is Korea's leading provider of information and telecommunications services spanning Mobile Services, M-Commerce, overseas operations and subsidiaries. SK Telecom's SPEED 011, Korea's leading cellular service brand, NATE wireless Internet service and JUNE multimedia service, which offers Video Phone, VOD (Video On Demand) and AOD (Audio On Demand) for CDMA2000 1X and 1X EV-DO mobile phone users, are providing unrestricted access to communication anytime, and anyplace. SK Telecom already has established a presence in China, Northeast Asia, Southeast Asia, Europe and the USA. The company, that has extensive experience and technology related to first-generation analogue and second-generation CDMA wireless communications, is leading the race to develop the third-generation IMT-2000 system and services. For details, please visit http://www.sktelecom.com.

About ATI Technologies

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 deliver leading-edge performance solutions for the full range of PC and Mac 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 2,200 employees in the Americas, Europe and Asia. ATI common shares trade on NASDAQ (ATYT) and the Toronto Stock Exchange (ATY).

Forward-looking Statements and Uncertainties

Certain statements in this press release constitute "forward-looking statements." When used in this press release, words such as "plans," "intends," "anticipates," "should," "estimates," "expects," "believes," "indicates," "targeting," "suggests," and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on current expectations and entail various risks and uncertainties that are outlined in this press release and in the Company's 2002 Annual Report and 2001 Annual Information Form. As a result of these risks and uncertainties, the Company's operating results and common share price may be subject to significant volatility, particularly on a quarterly basis. For example, the markets for the Company's products are characterized by changing market conditions, frequent new product introductions, seasonal and variable demand and rapid technology changes. Other factors that could cause the Company's results to vary include, but are not limited to, lack of anticipated growth in the demand for PCs, gaming consoles and consumer electronic devices in which the Company's products are incorporated, reductions in the Company's average selling prices for its products due to competitive pressures and other factors, the introduction of new products by the Company's competitors which render the Company's products non-competitive, delays encountered by the Company in developing new products or enhancements, including integrated graphics and core logic components, in the time frame required by its customers, delays in manufacturing or unfavourable manufacturing yields experienced by the Company's independent foundries, unexpected variances in material costs, including silicon wafer, memory and printed circuit boards, and constraints on the supply of components utilized in the Company's products and in the PC industry generally. These risks and uncertainties could cause or contribute to actual results that are materially different from those anticipated or experienced in the past. Additional information concerning factors that could cause the Company's financial results to fluctuate is contained in the Company's filings with Canadian and U.S. securities regulatory authorities. ATI disclaims any obligation or intention to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Copyright 2004 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.

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