ATI Delivers Blazing Fast Integrated Performance for Intel-Based PCs and Laptops

Market Wire, August, 2006

ATI Technologies Inc. (TSX: ATY)(NASDAQ: ATYT) is delivering a new mark in excellence for integrated graphics performance on the Intel mobile and desktop computing platform with the introduction of the new Radeon® Xpress 1250 chipset. The Radeon Xpress 1250 serves up unparalleled graphics performance to the integrated graphics segment, providing more horsepower for the latest 3D games and the most sophisticated multimedia applications.

The Radeon Xpress 1250 will be available through leading notebook OEMs, including NEC who today launches the NEC LaVie L Advanced Type notebook for the Japanese market.

"NEC's LaVie L Advanced Type is powered by ATI's new Radeon Xpress 1250 to offer our customers a new standard in integrated graphics performance on the Intel platform," said Mr.Hiroyuki Masuda, Senior Vice President, NEC Personal Products, Ltd. "Together with ATI, NEC is delivering exceptional power for exciting multimedia applications and 3D games created for Windows Vista(TM). NEC and ATI continue to deliver leading-edge mobile solutions to customers everywhere."

Radeon Xpress 1250 is the first Intel-based chipset to support ATI's revolutionary Avivo(TM) display and video architecture. This technology produces vibrant images and smooth video playback, and true-to-life images for all types of multimedia, including high-definition content.

Radeon Xpress 1250 is Windows Vista-ready and is designed to handle Vista's Aero Glass features with ease while standing up to even the most demanding multitasking environments.

"With the new Radeon Xpress 1250, ATI is focused on optimizing graphics performance for the mobile and desktop world," said Philip G. Eisler, Senior Vice President and General Manager, Chipset and Notebook Business Unit, ATI Technologies. "ATI has worked hard to ensure that our graphics technologies are one step ahead and the new Radeon Xpress 1250 chipset delivers faster graphics, better multimedia and offers wide compatibility and broad connectivity options."

Radeon Xpress 1250 supports the latest memory and networking standards. In conjunction with ATI's SB600 South Bridge support is provided for up to 10 Hi-Speed USB 2.0 ports, 4 SATA II ports with RAID capability, and supports the fastest, most secure data management technologies.

About ATI Technologies

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 is the world's foremost graphics processor unit (GPU) provider and is dedicated to deliver 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 2005 revenues of US $2.22 billion, ATI has more than 3,400 employees in the Americas, Europe and Asia. ATI common shares trade on NASDAQ (ATYT) and the Toronto Stock Exchange (ATY).

Important Information Regarding Forward-looking Statements

Certain statements in this news release, including but not limited to the features, performance, pricing and availability of the Radeon® Express 1250 may be considered "forward-looking". Such forward-looking statements are based on current expectations, and, accordingly, entail various risks and uncertainties. Risks that could cause actual results to differ materially from such forward-looking statements include potential software or hardware-related issues or conflicts, the development of new products or technologies, overall system performance and other unforeseen risks. We therefore cannot provide any assurance that such forward-looking statements will materialize. We assume no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. Additional information concerning risks and uncertainties affecting our business and other factors that could cause actual results to differ materially from any forward-looking statement is contained in our filings with Canadian and U.S. securities regulatory authorities, including our 2005 Annual Information Form and 2005 Annual Report filed on SEDAR at www.sedar.com . Our Form 40-F and other filings we make with the U.S. Securities and Exchange Commission are available on EDGAR at www.sec.gov .

Copyright 2006 ATI Technologies Inc. All rights reserved. ATI and ATI product and product feature names are trademarks and/or registered trademarks of ATI Technologies Inc. All other company and product names are trademarks and/or registered trademarks of their respective owners. Features, pricing, availability and specifications are subject to change without notice. ATI Technologies Inc. (TSX: ATY) (NASDAQ: ATYT)

Contacts: ATI Technologies Inc. Will Willis Senior Public Relations Manager (905) 882-2600, ext. 8293 wwillis@ati.com High Road Communications Sarah Vella (416) 644-2270 svella@highroad.com For investor relations support, please contact: ATI Technologies Inc. Zev Korman, Investor Relations (905) 882-2600, Ext. 3670 zev@ati.com www.ati.com