ATI Technologies Inc. (TSE:ATY, NASDAQ:ATYT), a world leader in the supply of graphics, video and multimedia solutions, and SONICblue™ Incorporated (Nasdaq: SBLU), a leader in the converging Internet, digital media and consumer device markets, today announced that ATI has completed its acquisition of SONICblue's FGL Graphics division.

Under the terms of the agreement, SONICblue received (US) $2.7 million in cash and will receive an additional (US) $7.3 million if FGL Graphics meets operating plans for its business. ATI has acquired FGL Graphics' business with the world's major suppliers of high-performance workstation systems, including contracts with Compaq, Dell, Fujitsu, Hewlett-Packard, IBM and Siemens; the right to use the FireGL brand name; and 35 highly-skilled employees at FGL Graphics research and development and marketing facilities in Munich, Germany, and San Jose, California.

Company Backgrounds

SONICblue is a leader in the converging Internet, digital media and consumer device markets. Working with partners that include some of the biggest brands in consumer electronics, SONICblue creates and markets products that let consumers enjoy all the benefits of a digital home and a connected lifestyle. SONICblue holds significant financial assets, global marketing capabilities and a focused technology portfolio, that includes Rio® digital audio players, HomeFree™ home networking solutions, Diamond™ Internet access products and frontpath™ Information Appliances.
Founded in 1985, ATI Technologies Inc. is a world leader in the supply of graphics, video and multimedia solutions for personal computer and Mac platforms. The pioneer, innovator and market leader in the graphics industry, ATI provides cutting-edge technologies for the PC, set-top box, game console and other consumer appliances markets. The Company has more than 1,900 employees supporting customers from its headquarters in Markham, Ontario, Canada, as well as from offices in Barbados, France, Germany, Hong Kong, Ireland, Japan, Malaysia, the United Kingdom and the United States. ATI common shares trade on NASDAQ (ATYT) and the Toronto Stock Exchange (ATY).

This press release contains forward-looking statements that involve risks and uncertainties. Actual results may be materially different from those contained in such forward-looking statements. The markets for the companies' products are characterised by rapidly changing technology, evolving industry standards, frequent new product introductions, emerging competitors and significant price competition. In the event that ATI, together with FGL Graphics, is unsuccessful in identifying, developing, manufacturing or marketing new products or enhancing its existing products or maintaining is historical prices or margins, the FGL Graphics business and ATI's operating results will be adversely affected and SONICblue may not receive all of any of the additional (US) $7.3 million. The following factors, among others, could cause actual results to differ materially from those described herein: the risk that ATI and FireGL's businesses will not be integrated successfully; risks associated with the development, manufacture and marketing of new or enhanced FireGL products; and other economic, business and competitive factors affecting ATI's and FireGL's businesses generally. Additional information concerning factors that could cause actual results to materially differ from those in such forward-looking statements is contained in the Company's filings with securities regulatory authorities. ATI disclaims any obligation or intention to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Copyright 2001 ATI Technologies Inc. All rights reserved. ATI and ATI product and product feature names are trademarks and/or registered trademarks of ATI Technologies Inc. SONICblue, HomeFree, Diamond and frontpath are trademarks of SONICblue. Rio is a registered trademark of Rioport, Inc. and is used by SONICblue under license from Rioport, 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 further information, please visit our Web site at http://www.ati.com or contact: