Instant Effects and ATI Enable Easy Delivery of Next Generation Interactive Documents That Combine 2D, 3D, and HD Video Content.

LAS VEGAS -- Office FX(R) Professional and the ATI Interactive Media Player Make Advanced Media Creation and Distribution a Snap

Instant Effects, Inc., and ATI Technologies, Inc. (TSX:ATY)(Nasdaq:ATYT), today announced a collaborative solution that allows mainstream computer users to easily create and distribute broadcast-quality interactive documents and presentations that combine text, 2D and 3D graphics, audio and High Definition video content. These advanced media files can then be delivered for real time interactive playback on any Microsoft(R) DirectX9-capable computer equipped with an ATI discrete graphics processing unit (GPU).

Using Instant Effects' OfficeFX Professional V2.1, advanced media presentations are authored directly inside Microsoft PowerPoint(R). These presentations can incorporate the polished look of a network TV show or the magical appeal of Hollywood special effects. With its new Publish to FXD(TM) feature, OfficeFX Professional V2.1 packages the OfficeFX-enhanced interactive 3D presentation and all of its content into a file that can be played in the ATI Interactive Media Player -- independent of both OfficeFX and PowerPoint. ATI will bring the marketing and presentation advantages of this new form of accessible integrated media to its customers by incorporating the ATI Interactive Media Player as part of its standard driver download and innovative Catalyst(TM) Control Center. Now, any computer equipped with ATI's Interactive Media Player will be able to display integrated media files published in the FXD format. The broad distribution of the ATI Interactive Media Player will allow new media documents to be conveniently shared. The ATI Interactive Media Player distributed by ATI Technologies was developed by Instant Effects, Inc., as a branded FXD Player.

"The ability to create an integrated 2D, audio, and HD video presentation and then to distribute it as an interactive 3D media file is something people can put to use right away," said analyst Dr. Jon Peddie of Jon Peddie Research. "The combination of a well understood authoring workflow that allows mainstream computer users to create stunning presentations with compelling graphics and video has the potential for driving advanced graphics to a much larger audience -- from board room, to classroom, to living room."

"With ATI graphics, the ATI Interactive Media Player and the well known workflow of OfficeFX Professional, we see demand for this new form of interactive, integrated, and customized media," said Andy Thompson, Director, Advanced Technology Marketing, ATI Technologies, Inc. "Digital media professionals and business users alike have a serious new medium for authoring and delivery."

Broad acceptance and utilization of advanced 3D graphics has formerly been confined to the games enthusiast market and to high end digital content creation (DCC) and Computer Assisted Design (CAD). While it is compelling, interactive 3D media has not been widely embraced by mainstream computer users in the past due in part because it was difficult to create and required specialty hardware to display. Continued innovation powered by graphics semiconductor vendors like ATI has escalated the performance of consumer priced graphics hardware to stunning levels over the past several years. Helping to drive a market shift, the partnership between Instant Effects and ATI arms computer users without advanced 3D design skills access to a new media platform where they can easily mix their own content. OfficeFX Professional delivers what has been missing with its universally understood PowerPoint workflow and unique media integration capability.

"The ability to conveniently author and distribute interactive 3D documents is yet another way the ongoing digital media revolution is empowering both individuals and corporations," said Don Brittain, CEO of Instant Effects. "For creating everything from highly-branded interactive product demos to professional-looking personal video collections, FXD files provide a powerful way to bring the viewing experience alive, and to convey messages with power, impact, and appeal."

The ATI Interactive Media Player will be available for download in the September release of the Catalyst Control Center at www.ati.com.

ABOUT INSTANT EFFECTS, INC.

Instant Effects develops software that enables mainstream computer users to easily create interactive rich media from within popular productivity applications or through access to common data sources. The company's mission is to simplify high-quality rich media creation and broaden its applicability and use. Instant Effects, Inc., is a privately held company headquartered in Santa Barbara, California. For more information, please visit: www.instanteffects.com.

ABOUT ATI TECHNOLOGIES, INC.

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 approximately 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).