Rapidly expanding position in enthusiast, mainstream and value markets

Markham, Ontario - December 18, 2002 - ATI Technologies Inc. (TSX: ATY,
NASDAQ: ATYT), a world leader in the design and manufacture of innovative 3D graphics and digital media silicon solutions, today announced its financial results for the first quarter of its 2003 fiscal year ended November 30, 2002.

Revenues for the first quarter were $322.0 million, up 34.5 per cent from $239.5 million in the fourth quarter of fiscal 2002, and up 28.8 per cent from $250.0 million in the first quarter of fiscal 2002. Gross margins were 27.3 per cent, down from 30.1 per cent in the fourth quarter of fiscal 2002. Operating expenses, excluding amortization of intangible assets, increased to $79.6 million from $70.1 million in the previous quarter.

Net income for the first quarter was $5.0 million or $0.02 per share compared to a net loss of $32.2 million or $0.14 per share for the fourth quarter of 2002 and a net loss of $10.3 million or $0.04 per share for the same period a year ago. Adjusted net income(1) for the quarter was $7.0 million or $0.03 per share compared to $2.4 million or $0.01 per share for the previous quarter, and $10.4 million or $0.04 per share for the same period a year ago.

(1)Adjusted net income excludes the after-tax effect of gain (loss) on investments (net), amortization of goodwill and intangible assets related to the Company's acquisitions, and the deferred tax recovery of future tax liability pertaining to goodwill and intangible assets acquired. Each of these items has been excluded from adjusted net income as they are not considered to be part of the Company's normalized ongoing operations. While the Company recognizes that adjusted net income does not have any standardized meaning described by generally accepted accounting principles, or GAAP, and that its adjusted net income calculation cannot be used as a comparison to other companies' financial performance, ATI believes that its adjusted net income more appropriately reflects the Company's operating performance. Please see the table titled "Adjusted Net Income - Reconciliation" in Management's Discussion and Analysis of Interim Financial Results in this news release for the reconciliation between adjusted net income and net income which is determined in accordance with GAAP. All dollar amounts are stated in U.S. dollars unless otherwise noted. All per share amounts are stated on a fully diluted basis unless otherwise noted.

"We were pleased with the strength of our PC business in our first quarter," said David Orton, President and Chief Operating Officer, ATI Technologies Inc. "We obtained key design wins in every product category and our product strength helped ATI to gain share in all major channels and geographies. We continue to invest in R&D in order to maintain the momentum that we have created."

In the first quarter, the RADEON* 9700 and RADEON* 9000 family of products along with ATI's integrated graphics products, drove revenue growth. ATI's add-in-board partners delivering RADEON*-based technology to the system builder market also contributed to the Company's revenue growth this quarter.

"Over the last few quarters, ATI has achieved undisputed technology leadership in PC graphics, and delivered compelling visual solutions to every market segment," said K.Y. Ho, Chairman and Chief Executive Officer, ATI Technologies Inc. "Moreover, ATI is committed to executing on an aggressive product roadmap to deliver and expand our industry-leading visual processing solutions."