New Xilleon® 260 offers amazing image quality and outstanding audio backed by unmatched performance

SEPTEMBER 1, 2006 - ATI Technologies Inc. (TSX:ATY)(NASDAQ:ATYT) today announced Xilleon® 260, the first System-on-a-Chip that supports Full HD for worldwide DTV (digital television) standards including Europe, Japan, Korea and North America. Xilleon 260 is designed to help consumer electronics manufacturers meet and surpass the high quality video and audio expectations of home theater enthusiasts. ATI is showcasing DTV solutions at IFA from September 1 to 6, 2006 in Berlin, Germany.

Xilleon 260 follows the outstanding success of Xilleon® 240 currently found in TV solutions from leading consumer electronics manufacturers. Xilleon 260 includes an exceptionally powerful video pipeline for SD and HD content. Advanced features include HD deinterlacing, 3D comb filter, dynamic contrast, noise reduction, sharpness, and color control to deliver top quality end-to-end performance. Xilleon 260 also offers a full audio subsystem for home theater applications.

"Xilleon 260 addresses the needs of worldwide TV manufacturers for mainstream and high end applications," said Dave Di Orio, Vice President & General Manager, DTV Group, ATI Technologies Inc. "Xilleon 260 incorporates all the key technologies in a single chip solution that help to reduce the overall TV design cost compared to traditional multi-chip solutions. We're confident that Xilleon 260 reaffirms ATI's technology leadership position in the DTV market."

Xilleon 260 is currently sampling to customers.

About ATI Technologies

ATI Technologies Inc. is a world leader in the design and manufacture of innovative 3D graphics, PC platform technologies 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 fiscal 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).

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)

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