Motorola Expands Mobile Phone Line-up with ATI's IMAGEON(tm) Media Processors

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MARKHAM, ON/ Munich, Germany - November 29, 2004 - ATI Technologies (TSX:ATY, NASDAQ:ATYT) today announced that Motorola has expanded its mobile phone line up with twelve recently announced handsets based upon ATI's IMAGEON(tm) Media Processors. The new models include RAZR V3 - the industry's thinnest quad-band clamshell video phone, A630 - a two-way email EMS phone, i860 - an iDEN clamshell, camera phone, and E398 - an MP3 player/camera phone with 3D stereo speakers. These phones have already captured the attention of the market with numerous reviews published on-line and in mobile magazines.

Improving on its best selling V500/V600 clamshell phones, Motorola introduces RAZR V3, the world's thinnest flip phone (only 13.9 mm thickness) with a multitude of multimedia features including MPEG4 video playback accelerated by the ATI IMAGEON(tm) Media Processor. The Motorola A630 is a versatile, EMS 5.0 compatible two-way email and camera phone that can be flipped open offering a full QWERTY keyboard, and a landscape LCD display. The i860 is NexTel's first camera phone on the iDEN network. Stunning images on full color LCD displays and high quality video on these phones are made possible by ATI's IMAGEON Media Processors.

ATI's IMAGEON(tm) Media Processors provide advanced multimedia features such as digital still image capture (digital camera), Image Viewing (JPEG decoding) and rotation, and video clip (MPEG4) playback. All these functions create an enhanced visual experience for the end-user, and help propel new wireless services such as the popular Multimedia Messaging System (MMS) services. In addition, all the integrated features, including frame buffer memory and flexible display (LCD) controller, allow the IMAGEON(tm) to take workload off of the handset's baseband processor, thereby minimizing power consumption and extending battery life.

Presently available Motorola mobile phones with ATI IMAGEON(tm) Media Processors are:

GSM/GPRS: Razr V3, E398, A630, V80, V620, V600, V550, V547, E550, V545, V535, V525, V500, V400, and V300

iDEN: i860

For more information about ATI's graphics, visit http://www.ati.com. To learn more about Motorola's new handsets, visit http://www.motorola.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 visual processor unit (VPU) 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 2004 revenues in excess of US $2.0 billion, ATI has more than 2,700 employees in the Americas, Europe and Asia. ATI common shares trade on NASDAQ (ATYT) and the Toronto Stock Exchange (ATY).