Press Release - 2003

MARKHAM, Ontario – HDIC and EIS, two Chinese digital television integrators, announced today they have developed application software and middleware for Xilleon™ platforms from ATI Technologies Inc. (TSX:ATY, NASDAQ:ATYT). HDIC’s Media Beacon Tower middleware is a Java-based interactive engine designed as a value-added service for content operators and end-users. EIS has implemented iPanel microbrowser for Xilleon powered set top boxes (STB) to provide a graphical user interface that is fully customizable by the network operators, as well as full web browsing functionality.

The Xilleon 220 integrates a high speed MIPS® CPU (central processing unit), graphics, video, audio, conditional access, USB (universal serial bus), EIDE (enhanced integrated drive electronics), PCI (Peripheral Component Interconnect), memory controller, and a host of other I/O capabilities into one device. To complete the design of many consumer devices, the only components that need to be added are tuners, demodulators, modems, and memory.

“ATI’s Xilleon 220 provides the most versatile feature set for digital TV (DTV), high-definition TV (HDTV) and STBs,” said Ryan Xu, CEO, EIS. “EIS is delighted to provide our iPanel microbrowser on such a powerful platform to deliver a new level of Internet browsing and multimedia experience for customers on traditional TVs or DTVs. Coupling the iPanel browser available with Xilleon empowers manufacturers to enable remote education and digital image viewing on their devices including an easily customizable user interface to fit their customers’ needs.”

EIS has created the iPanel microbrowser to be fully compliant with all major Internet browser standards that support a wide variety of image formats and multimedia Internet applications. Designed to be fully customizable, iPanel microbrowser is highly portable to work with industry standard operating systems. The microbrowser is also optimized for TV displays with built-in anti-flickering algorithms for graphics rendering and anti-aliasing fonts.

“HDIC, cooperating with XOCECO, is delighted to port our middleware onto ATI’s powerful and flexible Xilleon 220. The combination of ATI’s Xilleon with an embedded Linux OS powerful graphics and CPU abilities makes the work of porting to a variety of products very easy,” said Mr. Yi Li, VP of HDIC. “With HDIC’s MBT, Xilleon based STBs will provide users with a totally new outlook on DTV.”

HDIC’s MBT is a solution for digital television middleware system and is compatible with the future Chinese DTV middleware standard. Working closely with the National Middleware Standard Group, HDIC is leading the way in creating the current and future compliant solutions for DTV and STB manufacturers. With advanced architecture and powerful functions, MBT also supports online upgrading and customization.

“Dedicated development is key to the future of HDTV,” said Yujing Wei, Greater China manager, marketing and business development, DTV/Consumer Products Group, ATI Technologies Inc. “ATI is proud to be working with system integrators such as HDIC and EIS to enable the progress of DTV in the consumer marketplace, and we’re glad to see more and more application level software design for use with the Xilleon platform. This increase in cooperative efforts means more choice to service providers and manufacturers.”

ATI Technologies will exhibit its DTV technologies on March 21-23 at China Cable Broadcasting Network 2003 at booth #3606 in Hall 3 of the China International Exhibition Center, Beijing, China.

About EIS
Embedded Internet Solutions, Inc is a leading embedded software provider for set-top boxes, digital TV, smartphones and PDAs. Its flagship product, iPanel microbrowser, provides a full-feature HTML rendering engine with low system requirements. Additional information, about is EIS is available at http://www.ipanel.com.cn or http://www.embisoft.com

About HDIC
Shanghai High Definition Digital Innovation Center, HDIC, is a leading design house of DTV broadcasting and consumer electronic software and hardware. Its flagship DTV software solution is MBT middleware system, which offers the hardware-independence, openness and flexibility to their interactive customers.

About ATI Technolgies
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 visual 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 markets. With 2002 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).

Contact Information

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

For Information:
John Swinimer, Public Relations Manager, Consumer Products, at (905) 882-2600, Ext. 8456 or swinimer@ati.com

Other ATI Contacts:
Pedro Cabezuelo, Senior Counsellor, BenchMark Porter Novelli, at (416) 422-7164 or pcabezuelo@bmporternovelli.com

For investor relations support, please contact:
Janet Craig, Director, Investor Relations, ATI Technologies Inc., at (905) 882-2600, Ext. 2631 or jcraig@ati.com

For more information about EIS, please contact:
Ms. Li Ying, EIS, at +86 (755) 8355 1234 ext 8028 or liying@ipanel.com.cn

For more information about HDIC, please contact:
Mr. Philip Wang, HDIC, at +86 (21) 6282 1020 ext 8030 or yaowang@cdtv.org.cn