jmke

ATI’s Mobility™ Radeon® X1600 Delivers the Ultimate Visual Experience with Avivo™

Mobility™ Radeon® X1600: World’s First Mobile GPU with Avivo Visual Display Technology

MARKHAM, ON/ Munich, Germany – December 6, 2005 – ATI Technologies Inc. (TSX: ATY, NASDAQ:ATYT) today set a new visual standard in the performance thin notebook market, with the introduction of Mobility™ Radeon® X1600. The first mobile discrete graphics processor featuring ATI’s revolutionary Avivo™ technology, Mobility Radeon X1600 delivers the ultimate digital entertainment solution for performance thin notebook designs through lightning-fast graphics, superior power management, and stunning visuals. Avivo technology brings one billion colors to the laptop to create highly vivid images and advanced photorealism.

With Microsoft’s Shader Model 3.0 and full-precision DirectX 9 support, ATI delivers cutting-edge graphics performance on today’s latest game titles. Mobility Radeon X1600 also introduces PowerPlay™ 6.0 featuring back bias technology designed to minimize power while in battery mode. These revolutionary power management capabilities, combined with the TSMC’s Nexsys 90nm fabrication process, result in ground breaking performance-per-watt efficiency and make Mobility Radeon X1600 the ideal graphics solution for performance-thin notebook designs.

“Today’s notebook designs continue to push the envelope in their demand for higher performance using less power. Mobile graphics produced with TSMC's 90nm process show an enormous improvement in clock speed and power reduction versus earlier generation technologies,” said Kenneth Kin, Senior Vice President of Worldwide Sales and Service for TSMC. “As one of the leading users of 90nm process technology in the industry, ATI continues to maintain its position at the technological forefront.”

ATI is also leading the pack with its support of Microsoft’s next-generation operating system, Windows Vista, including Windows Vista Display Driver (WVDM) support for ATI’s top-to-bottom line of DirectX 9 graphics processors.

“By investing early in new visual technologies and design processes, such as TSMC’s industry-leading 90nm technology, ATI is continuously striving to raise the performance bar for mobile graphics,” said Peter Edinger, Managing Director and Vice President EMEA, ATI Technologies (Europe) GmbH. “ATI is once again breaking new visual ground with the introduction of Mobility Radeon X1600 and we are poised to maintain our leadership in the performance thin notebook segment of the market.”

Mobility Radeon X1600 will drive notebooks from such industry leading OEM and ODM designers as Acer, Alienware, Arima, Asus, ECS, Evesham, FIC, Gericom, HP, LG, Medion, MiTAC, MSI, Packard Bell, Rockdirect, Samsung, Targa, and Uniwill.

“Acer is committed to empowering our customers by providing notebooks that push the boundaries in performance, quality and power efficiency,” said Campbell Kan, Head of the Mobile Computing Business Unit, Acer Inc. “By working closely with ATI to bring leading-edge products like Mobility Radeon X1600 to market, we can deliver incredibly versatile, high-performance mobile products into the hands of our customers.”

“Mobility Radeon X1600 represents a significant advancement in visual performance and power management technologies,” said Nick Boardman, Managing Director, Rock Group. “By offering notebooks based on ATI’s most advanced mobile technology, Rock Group can deliver a best-in-class user experience from lightening-fast gaming performance to high definition TV and DVD playback, in a highly portable notebook design.”

“ATI consistently leads the pack as an innovator in the mobile arena with its leading-edge power management technologies and stunning visual performance—and Mobility Radeon X1600 is no exception,” said David Chen, Vice Chairman, Uniwill Corp. “Partnering with ATI enables Uniwill to deliver a combination of rich visuals, high performance and greater efficiencies, presenting an extremely appealing proposition for our notebook customers.”

Mobility Radeon X1600 offers a wide range of features and benefits including:
• Fast graphics performance with brand-new multi-threaded 3D architecture and memory controller
• Microsoft’s Shader Model 3.0 with full precision DirectX 9 support for the latest games
• Powerplay 6.0 featuring back bias process technology for lower power consumption
• Avivo technology for high-fidelity, flawless video playback and enhanced connectivity
• Dual-link integrated DVI for support of the highest quality digital panels
• TSMC’s Nexsys 90nm process technology
• 12 Pixel Shader Processors
• 5 Vertex Shader Units
• Supports Microsoft’s next-generation operating system, Windows Vista

ATI unveiled Mobility Radeon X1600 today at a product launch event in Taiwan.

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 graphics processing unit (GPU) 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 fiscal 2005 revenues of approximately 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).

- 30 -
Important Information Regarding Forward-looking Statements
Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as “plans,” “intends,” “anticipates,” “should,” “estimates,” “expects,” “believes,” “indicates,” “targeting,” “suggests” and similar expressions.

This news release contains forward-looking statements about ATI’s objectives, strategies, financial condition and results. These “forward-looking” statements are based on current expectations and entail various risks and uncertainties. Our actual results may materially differ from our expectations if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. Therefore we cannot provide any assurance that 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 our financial results to fluctuate is contained in our filings with Canadian and U.S. securities regulatory authorities, including our 2004 Annual Information Form and 2004 Annual Report filed on SEDAR at www.sedar.com.

Copyright 2005 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.

For media or industry analyst support, visit our Web site at http://www.ati.com

__________________