Microtune Supplies Silicon Tuner Technology for ATI's New TV WONDER ELITE and ALL-IN-WONDER Family of Multimedia/PC Video Cards.

PLANO, Texas -- ATI Combines Its Award-Winning Graphics Technologies with Microtune's Silicon Tuner Technology in PC Video Products That Deliver Sophisticated Broadcast, Home Theatre, Gaming and PC Entertainment

Microtune(R), Inc. (Nasdaq:TUNE) today announced that it is supplying its single-chip tuner technology to ATI Technologies Inc. (TSX:ATY)(Nasdaq:ATYT) for incorporation into ATI's newly announced TV WONDER(R) ELITE and ALL-IN-WONDER(R) family of multimedia/PC video add-in cards. Microtune's MicroTuner(TM) MT2050 provides the radio frequency (RF) tuning and receiving 'gateway' for, among its other PC/TV products, ATI's:

--New TV WONDER ELITE, engineered for consumer-electronics video quality,

--The forthcoming ALL-IN-WONDER(R) X800 XT, which is designed to offer industry-leading video reception, and

--The currently shipping ALL-IN-WONDER(R) X600 PRO, one of the first multimedia video cards with support for PCI Express.

ATI is a world leader in the supply of graphics, video and multimedia solutions for desktop and notebook personal computers, consumer electronics devices, digital televisions and video game consoles. ATI sells its PC video cards to consumers through retail and, as systems components, to add-in board manufacturers. Microtune, inventor of the single-chip broadband tuner, is an innovative supplier of radio frequency (RF) silicon and subsystems products for consumer and automotive electronics markets, including HDTVs, PC/TVs, set-top boxes, cable modems and car TVs.

"ATI continues to redefine multimedia PC entertainment with products that deliver enhanced functionality and award-winning, high-quality video and graphics performance. We rely on leading-edge technologies to power our products, and we have long recognized that Microtune develops the industry's most advanced broadband silicon tuners," said Paul Lypaczewski, Vice President & General Manager, Multimedia Business Unit, ATI Technologies Inc. "The combination of the Microtune single-chip tuner with our innovative ALL-IN-WONDER and TV WONDER technology further strengthens ATI's industry leadership for PC video solutions. Our customers benefit from an unmatched user experience, whether for home theater, video editing or game playing."

"ATI is recognized for its technology and market-share leadership, and we are pleased to be selected as its strategic technology supplier in bringing exciting new PC video options to consumers worldwide," said James A. Fontaine, Microtune's President and CEO. "Converging PC and TV applications require a tuner that sets a new benchmark in performance, functionality, reliability and cost-effectiveness. Microtune's MicroTuner MT2050 delivers. Our patented RF integrated-circuit technology, now in its seventh generation, produces the high-quality reception critical for enhanced digital computing and superior digital TV."

Microtune's MT2050, part of a suite of RF chips targeted for the next-generation TV markets, enables a range of PC video and home theatre applications, including PC/TV, PC/HDTV, PC/PVR, FM radio and datacasting, as well as video-enriched multimedia for immersive gaming experiences. Supporting worldwide reception standards, the tuner is engineered to deliver excellent picture and audio quality, dual-conversion tuner performance, and increased reliability. Its miniature size makes it ideal for space-constrained environments such as in the PC.

ATI Multimedia Products

ATI's ALL-IN-WONDER entertainment products feature customizable TV, DVD, audio and video editing tools.

This design win further extends the long-standing relationship between Microtune and ATI. Microtune tuner technology has been implemented previously in ATI's ALL-IN-WONDER(R) multimedia graphics boards, which deliver a range of sophisticated TV and home-theater experiences for desktop PCs. ATI's NXT2003(TM) DTV and Terrestrial Receiver chip solution has been incorporated into Microtune's Digital Cable Ready (DCR) Reference Design, which is a single, common front-end solution for manufacturers to bring digital terrestrial and cable-compatible consumer electronics devices to market.

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 visual processor unit (VPU) 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 Microtune

Microtune, Inc. is a silicon and subsystems company that designs and markets radio frequency (RF)-based solutions for the worldwide broadband communications and transportation electronics markets. Inventors of the MicroTuner(TM) single-chip broadband tuner, Microtune offers a portfolio of advanced tuner, amplifier, upconverter and transceiver products that enable the delivery of information and entertainment across new classes of consumer electronics devices. The Company currently holds more than 40 U.S. patents for its technology. Founded in 1996, Microtune is headquartered in Plano, Texas, with key design and sales centers located around the world. The website is www.microtune.com.

Design-Win Announcements

It is not unusual for Microtune to announce design wins of this kind, and the announcement of this design win, or any other design win, should not be viewed as an indicator of Microtune revenues for any current or future reporting period.

Forward-Looking Statements

All statements in this press release other than statements of historical fact are forward-looking statements that are subject to risks and uncertainties that could cause such statements to differ materially from actual future events or results. Such forward-looking statements are generally, but not necessarily, accompanied by words such as "plan," "if," "estimate," "expect," "believe," "could," "would," "anticipate," "may," or other words that convey uncertainty of future events or outcomes. These forward-looking statements and other statements made elsewhere in this release are made in reliance on the Private Securities Litigation Reform Act of 1995. Factors which could cause actual results to differ include the Company's ability to introduce new products, achieve design wins, forecast revenue and manage inventory levels, control and budget expenses, protect its proprietary technology and intellectual property, and successfully prosecute and defend the various lawsuits, any of which may cause the Company's financial results to fluctuate. The forward-looking statements in this release speak only as of the date they are made. We undertake no obligation to revise or update publicly any forward-looking statement for any reason. Readers are referred to our Annual Report on Form 10-K, subsequent Quarterly Reports on Forms 10-Q, recent Current Reports on Forms 8-K, and other Securities and Exchange Commission filings, which discuss the foregoing factors as well as other important risk factors that could affect our business, results of operations and financial condition.

Editors Note:

Microtune is a registered trademark and MicroTuner is a trademark of Microtune, Inc.

ATI and ATI product and product feature names are trademarks and/or registered trademarks of ATI Technologies Inc. Copyright (C) 2005 Microtune, Inc. All rights reserved.