ATI to Extend Production of IMAGEON 2240 Media Processor with Chartered's 0.13-Micron Low-Power Process.

MILPITAS, Calif. & SINGAPORE -- Media Processor for High-Volume Camera Phone Market to Leverage Leading Foundry's Low-Power Manufacturing Capabilities

ATI Technologies, Inc. (TSX:ATY)(Nasdaq:ATYT) has received functional samples of its IMAGEON(TM) 2240 media processor for high-volume camera phones from Chartered Semiconductor Manufacturing (Nasdaq:CHRT) and (SGX-ST:Chartered), one of the world's top dedicated semiconductor foundries. Following the successful prototyping, Chartered will start volume production on its 0.13-micron low-power, all-copper process; therefore providing ATI with additional manufacturing capacity for its IMAGEON 2240.

"The IMAGEON 2240 has been gaining good traction in the market place as a cost-effective, high-performance, and ultra-low power solution to meet the needs of the extremely competitive entry-level camera phone segment," said Jim Seto, Vice President, ASIC NPI and Production Engineering at ATI Technologies. "Expanding production with Chartered who has proven 0.13-micron manufacturing capabilities, gives us added flexibility in our capacity needs to meet strategic growth market opportunities."

"We're excited to have innovative products, such as ATI's IMAGEON 2240 media processor, leverage our low-power process at 0.13 micron," said Mike Rekuc, senior vice president of worldwide sales and marketing at Chartered. "Being chosen by a system and product leader as a foundry source for one of its hottest-selling products further reflects our enhanced position in enabling advanced technologies and world-class manufacturing."

About ATI Technologies

ATI Technologies Inc. is the 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 graphics processing unit (GPU) provider and is dedicated to delivering 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 device markets. With 2004 revenues of US $2 billion, ATI has more than 2,700 employees in the Americas, Europe and Asia. ATI common shares trade on NASDAQ (ATYT) and the Toronto Stock Exchange (ATY).

About Chartered

Chartered Semiconductor Manufacturing (Nasdaq:CHRT)(SGX-ST:CHARTERED), one of the world's top dedicated semiconductor foundries, offers leading-edge technologies down to 90 nanometer (nm), enabling today's system-on-chip designs. The company further serves the needs of customers through its collaborative, joint development approach on a technology roadmap that extends to 45nm. Chartered's strategy is based on open and comprehensive design enablement solutions, manufacturing enhancement methodologies, and a commitment to flexible sourcing. In Singapore, the company operates a 300mm fabrication facility and four 200mm facilities. Information about Chartered can be found at http://www.charteredsemi.com.