ATI Introduces RADEON™ 9700 PRO Graphics Board Based On Newly Introduced VPU Architecture; RADEON™ 9700 PRO Delivers Double the Performance of Any Graphics Card Available

Business Wire, August 7, 2002

Business Editors

MARKHAM, Ontario--(BUSINESS WIRE)--Aug. 7, 2002

ATI Technologies, Inc., (NASDAQ:ATYT)(TSX:ATY) today announced the addition of the RADEON(TM) 9700 PRO graphics board, featuring the RADEON(TM) 9700 PRO visual processing unit (VPU), to its successful retail lineup. Based on the RADEON 9700 series VPUs introduced in July, the RADEON 9700 PRO board will deliver breakneck performance to the gaming and enthusiast market.

"In this fast paced industry, customers demand that products ship soon after announcement," said Rick Bergman, Senior Vice President, Marketing and General Manager, Desktop, ATI Technologies Inc. "We are on target for our mid-August shipping date, when customers will be able to experience first hand the major innovations that the RADEON 9700 VPUs deliver to gaming and the computer graphics industry."

Featuring eight parallel rendering pipelines, complete Microsoft(R) DirectX(R) 9 support, AGP 8X support and a fully programmable floating point architecture, the RADEON 9700 PRO leads the industry into a new era of cinematic-quality real time graphics.

ATI's feature-rich RADEON 9700 PRO retail offering includes:

-- 128MB of DDR memory;

-- Dual-display configuration including VGA, DVI-I and s-video connectors with
independent resolutions and refresh rates for any two connected displays;

-- Fast engine (325MHz) and memory (620MHz) clock speeds;

-- CATALYST(TM) software support including WHQL (Windows Hardware Quality Labs)
certified driver and HYDRAVISION(TM) desktop management software;

-- RADEON 9700 PRO visual processing unit featuring SMARTSHADER(TM) 2.0,
SMOOTHVISION(TM) 2.0, HYPER Z(TM) III, and VIDEOSHADER(TM) technologies; and

-- Suggested retail price of US$399.

The RADEON 9700 PRO has been selected as the official graphics card of QuakeCon 2002. Competitors in ATI's Quake and Return to Castle Wolfenstein Tournaments will compete on systems powered by the RADEON 9700 PRO, the fastest, most feature-rich graphics solution available.

ATI will begin shipping the RADEON 9700 PRO board to retail customers and distributors beginning August 19, where it will join the recently introduced RADEON 9000 PRO, and ATI's other strong retail products in stores and online. RADEON 9700 PRO boards will be available from ATI's board partners later this month.

Other retail products based on the RADEON 9700 and RADEON 9000 architectures will be introduced later this year.

About the Company

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 delivers leading-edge performance solutions for the full range of PC and Mac desktop and notebook platforms, workstation, set-top box, game console and handheld markets. With 2001 revenues in excess of US $1 billion, ATI has more than 1,900 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," "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 2001 Annual Report and 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.