Press Release - 2003

MARKHAM, Ontario – ATI Technologies Inc. (TSX:ATY, NASDAQ:ATYT) announced today that ATI’s Xilleon™ 220 and NXT6000™ have been selected by Xiamen Overseas Chinese Electronic Co., Ltd.(XOCECO) for its DH-78 HDTV cable set-top box (STB). XOCECO is one of the largest and most advanced manufacturers and exporters of consumer electronics in China.

ATI’s Xilleon 220 is an advanced and highly integrated system-on-chip suitable for a range of digital devices including STBs and digital televisions (DTVs), while NXT6000 is the industry’s most advanced, smallest form factor and lowest power COFDM (Coded Orthogonal Frequency Division Multiplexing) single-chip receiver for digital TV reception

“We selected ATI’s Xilleon 220 and NXT6000 to develop high quality consumer electronics products, such as the DH-78 HDTV cable STB, for the American and Australian markets,” said Zhongren Su, Vice-President of XOCECO Ltd. “We also have a joint-development with Shanghai Jiaotong University to implement its middle-ware onto the powerful Xilleon 220 platform which features the embedded 300 MHz MIPS CPU. During the development, we have obtained very good support from ATI both in technical issues and marketing information. We are thankful and satisfied with our good partner ATI.”

With market support for both high- and standard-definition formats, the DH-78 HDTV cable STB features dual MPEG-2 high definition video decode with Picture-in-Picture, enhanced 3D graphics engine, a full function IR remote control, smart card reader and much more to make the consumer electronics device an exciting addition to the home entertainment center.

“TV manufacturers such as XOCECO are driving HDTV (high definition television) acceptance forward and ATI is pleased to provide Xilleon 220 and NXT6000 to accomplish this goal,” said Yujing Wei, Greater China manager, marketing and business development, DTV/Consumer Products Group, ATI Technologies Inc. “ATI’s DTV products are designed to deliver quality performance in less space than competitors’ solutions. ATI is proud to work with XOCECO to deliver consumer electronics to the marketplace.”

As a highly integrated solution for digital terrestrial receiver applications, NXT6000 OFDM (orthogonal frequency-division multiplexing) Demodulator and FEC (forward error correction) IC includes Viterbi and Reed Solomon Forward Error Correction and an integrated 10 Bit A/D converter for superb signal reception. NXT6000 not only supports all modes of the DVB-T standards as defined by ETS 300 744, but also meets the mandatory requirements of the NorDig Receiver Specification that defines a set of requirements for high-performance terrestrial receiver solutions.

Xilleon 220 integrates into a single chip all processor, graphics, video, audio, and I/O (input and output) capabilities needed in a set-top box or digital TV. Included are a 300 MHz MIPS® CPU (central processing unit), dual-HD (high definition) capable MPEG decoder, audio decoder, dual display engine, 2D and 3D graphics engine, conditional access, transport demultiplexers, PCI (Peripheral Component Interconnect), USB (universal serial bus), and hard disk drive interfaces.

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 XOCECO
Xiamen Overseas Chinese Electronic Co., Ltd. (XOCECO), established in 1984, is one of the largest and most advanced manufacturers and exporters of consumer electronics in China. The headquarters is located in Xiamen, a modern, industrialized city of over one million people. Situated on the southeast coast of China, the production facilities consist of twenty different factories with a staff of over 6,000 employees. The combined production facilities cover over 2 million square feet. Products are exported to more than 60 countries throughout the world. Xoceco was the first company in China to develop the 25” and 27” colour televisions and the first Chinese electronics manufacturer to receive ISO9002 certification. The product line-up includes Pure Flat TV and HDTV, computer, monitor and communication products.

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