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ATI REACHES FEDERAL TAX SETTLEMENT

 THORNHILL, Ontario, Jan. 13 /PRNewswire/ -- ATI Technologies Inc. today announced that the company has reached a settlement with Revenue Canada with respect to the deductibility, for federal income tax purposes, of certain losses related to transactions in its 1987 and 1988 taxation years. The net settlement is approximately $7.2 million. The company is currently discussing a settlement with the Ministry of Revenue with respect to the deductibility of these losses for Ontario income tax purposes.
 ATI stated in its initial public offering prospectus dated November 1993 that Revenue Canada was reviewing the deductibility of losses realized on certain forward exchange contracts undertaken in its 1987 and 1988 taxation years. At that time, the company had received professional advice supporting the deductibility of the losses for tax purposes. ATI estimated in its prospectus that, if the losses were not, in fact, deductible, the total amount of tax and interest it would be required to pay for federal and Ontario purposes combined would be between $14 million and $15 million. This estimate reflected an assumed federal liability of approximately 70 percent of the total estimated potential liability.
 The settlement payment will be accounted for as a prior period adjustment, directly affecting the balance sheet only, and is estimated to impact forecast 1994 interest income and earnings per share, by less than $.01 per share.
 ATI is one of the world's leading manufacturers of graphics enhancement products for personal computers. The company's main products increase the speed at which graphics can be displayed on PC monitors and improve the resolution and color definition. ATI also is engaged in joint technology development projects with other industry leaders.
 -0- 1/13/94
 /CONTACT: Lance McIntosh, vice president, finance and administration of ATI Technologies, 905-882-2600, ext. 8306/


CO: ATI Technologies Inc. ST: Ontario IN: CPR SU:

CK -- NY092 -- 1903 01/13/94 16:46 EST
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Publication:PR Newswire
Date:Jan 13, 1994
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