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ATI forges relationships with five more manufacturers to make ATI-powered graphics boards

Jun 25, 2001

MARKHAM, ON, June 25 /CNW/ - ATI Technologies Inc. (TSE: ATY, NASDAQ:

ATYT), a world leader in graphics, video and multimedia solutions, today

announced that it has entered into manufacturing and distribution

relationships with five leading original design manufacturers (ODMs) in

support of its recently announced business strategy to increase sales and

distribution penetration of ATI chip technologies worldwide.

The latest ODM companies to enter into relationships with ATI include

DFI, FIC, Gigabyte, Lite-On Technology Corporation and USI. They join Acer-

DMS, the first manufacturer to announce its relationship with ATI.

ATI expects to announce additional manufacturing and distribution

relationships in the future with additional ODMs as well as with add-in board

manufacturers (AIBs). These companies will become the major suppliers of ATI

technologies to system integrators (SIs) and distributors worldwide. ATI will

continue to provide chips and board products to original equipment

manufacturers (OEMs) in the value, mainstream, high-end and workstation

markets and will continue to manufacture and support ATI-branded products in

the retail channel.

"These relationships will greatly assist SIs, distributors and customers

worldwide in providing multiple suppliers of ATI's industry-leading graphics

acceleration technology," said David Orton, President & Chief Operating

Officer, ATI Technologies Inc. "ATI anticipates it will deepen its penetration

into the SI and distribution markets through these new partners. We have

already begun significant volume shipments to a number of these

manufacturers."

ATI will offer the full range of its graphics products to participating

companies, along with reference designs, optimized software and technical

support to ensure product quality. This will provide a significant opportunity

for these companies to improve time-to-market for ATI-powered products,

increase sales, revenue and market share. Reaction from ODMs has been

enthusiastic, as they now have direct access to ATI products for their

customers.

"We see significant growth opportunities in our relationship with ATI

which will provide its technology directly to Gigabyte, a leading designer and

manufacturer of quality motherboards," said Richard Ma, President & Chief

Executive Officer, Gigabyte. "It will also allow us to expand our

relationships with key suppliers of computer systems, such as OEMs and large

SIs."

"Entering into a relationship with ATI will enable DFI to offer ATI's

leading graphics technologies directly to our customers," said Y.C. Lu, Chief

Executive Officer, DFI. "It will also enable DFI to bring the latest ATI

advances to all our markets faster and more economically."

"Lite-On Technology Corporation is looking forward to an exciting

relationship with ATI," said Fan Kung, Vice President, R&D department, Lite-On

Technology Corporation. "ATI provides high quality graphics chips and are

price/performance leaders. Access to ATI's chips, will allow us to bring to

market a wide array of ATI-powered products for every segment."

"Our participation with ATI will allow us a wide choice of graphics

technology to serve our customers," said Terence Horng, General Manager,

Networking & Information Group Fourth Division, FIC. "With ATI as a choice, we

will be able to penetrate the PC market even farther."

"The corporate market is increasingly demanding the most cost-effective

solutions for business computing," said Gilbert Wei, Director of System

Product Contract Manufacturing Design & Engineering, USI. "ATI has the widest

choice of feature-rich technologies for the corporate user and we are

confident we can drive new ATI-powered products into the business segment."

Company Background

Founded in 1985, ATI Technologies Inc. is a world leader in the supply of

graphics, video and multimedia solutions for the 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 company's

products are characterized by rapidly changing technology, evolving industry

standards, frequent new product introductions, emerging competitors and

significant price competition. In the event that the company is unsuccessful

in identifying, developing, manufacturing or marketing new products or

enhancing its existing products or maintaining its historical prices or

margins, it operating results will be adversely affected. 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. 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: For media or industry analyst support, please

visit our Web site at http://www.ati.com or contact: John B. Challinor II APR,

Director, Public Relations, ATI Technologies Inc., at (905) 882-8815 or

jchallin@ati.com; Brian Chadderton APR, Corporate PR Counsel, ATI

Technologies Inc., at (905) 882-2600, ext. 8350 or bchadder@ati.com; Ali

Philips, Senior Counselor, Benchmark Porter Novelli, at (416) 422-7152 or

aphilips@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;

To request a free copy of this organization's annual report, please go to

http://www.newswire.ca and click on reports@cnw.

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