jmke

MARKHAM, ON/ Munich, Germany – January 5, 2006 – ATI Technologies Inc. (TSX: ATY, NASDAQ:ATYT) today announced Mobility™ Radeon® X1400 and Mobility™ Radeon® X1300 graphics processors—taking the mainstream and thin-and-light notebook segments to new levels of visual realism, performance and power management. Both Mobility Radeon GPUs feature ATI’s new Avivo™ technology to deliver the best visual quality to notebooks at every price point available.

Following closely on the heels of Mobility™ Radeon® X1600, Mobility Radeon X1400 and Mobility Radeon X1300 deliver maximum affordability without compromising features and performance. Designed with cutting-edge 90 nanometer (nm) fabrication processes, both GPUs include Shader Model 3.0 support for today’s latest games along with a new multi-threaded 3D architecture for lightning-fast graphics.

Delivering the maximum performance and portability, Mobility Radeon X1400 meets the space savings and low power requirements of today’s thinnest and lightest notebook designs, while Mobility Radeon X1300 rounds out the offering in the mainstream notebook segment.

“When selecting the right graphics processor to complement Acer notebooks, we look for solutions that blend outstanding digital entertainment capabilities with high portability and battery life," said Campbell Kan, Head of Mobile Computing BU, IT Products Business Group at Acer. “ATI’s full-line of new Mobility Radeon X1000-series graphics help Acer notebooks remain on the cutting edge of mobile technology to deliver the stunning visual quality and high-definition video performance our customers expect.”

Acer—among the top four branded notebook vendors in the world—is showcasing several full-featured notebooks based on new Mobility Radeon graphics including: Acer TravelMate 8200 with Mobility Radeon X1600, Acer Aspire 5670 with Mobility Radeon X1400, and the Acer Aspire 5040 and Acer Aspire 1650Z notebooks with Mobility Radeon X1300.

“By investing in leading-edge technologies such as Avivo and 90 nm we can bring the most advanced features and performance to notebook designs that match every budget,” said Peter Edinger, Managing Director & Vice President EMEA, ATI Technologies (Europe) GmbH. “ATI’s Avivo technology delivers extremely vivid imagery by bringing 64 times more colors than our competition to the laptop screen, which allows us to offer an outstanding mobile experience at an attractive price point.”

The Mobility Radeon X1000 series graphics will drive notebooks from such industry leading OEM and ODM designers as Acer, Alienware, Arima, Asus, ECS, Evesham, FIC, FSC, Fujitsu, Gateway, Gericom, HP, LG, Medion, MiTAC, MSI, Packard Bell, Rockdirect, Samsung, and Uniwill.

The new Mobility Radeon graphics processors feature:
• Avivo technology for the best visual display quality and refined video playback
• Multi-threaded 3D architecture for fast graphics performance
• Microsoft’s Shader Model 3.0 with Direct®X 9 support for the latest game titles
• Longer-than-ever battery life with PowerPlay™ 6.0 power management features

Notebook designs with Mobility Radeon X1300 and X1400 will commence shipment by leading OEMs immediately and continue through the end of Q1. For more information on Mobility Radeon X1300, Mobility Radeon X1400 and other ATI products, please visit www.ati.com.

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).

__________________