JVC Reaffirms ATI’s Digital TV Technology Leadership

High-Definition displays feature ATI’s high quality, cost-efficient digital reception solutions

MARKHAM, Ontario – July 19, 2005 – ATI Technologies Inc. (TSX: ATY, NASDAQ: ATYT) announced today that Victor Company of Japan, Limited (JVC), one of the world’s leading producers of high-definition televisions (HD TVs), reaffirmed ATI’s position as the digital TV (DTV) technology leader by choosing the Xilleon 226 plus - ATI’s CARD (Customer Application Ready Design) and demodulation technology - for its new high-end plasma display panel and rear-projection HD TVs.

The JVC HD TVs (AV-56WP94, PD-50X795 and HD-61Z585) take advantage of the high quality display features in Xilleon 226, coupled with exceptional signal reception enabled by ATI’s demodulation technology.

These HD displays also support ATSC (Advanced Television Systems Committee) signal standard, dual high-definition signal decode, and the newly accepted CableCARD interface.

The Consumer Electronics Association projected that 2005 sales of Digital Cable-Ready (DCR) HDTV sets, featuring CableCARD connectivity, would grow three fold to 3 million. CableCARD allows DCR TVs to receive digital programming, including HD programs, without the use of a set-top box.

JVC is headquartered in Yokohama, Japan and reported worldwide sales of more than $8.7 billion US in 2004. The company is recognized as a TV industry innovator. For example, JVC invented the VHS video tape standard.

“JVC has a strong relationship with ATI after working with the company’s incomparable DTV group for over two years,” said Dr. Kazuyuki Ebihara, General Manager, Digital TV Department of Technology Development Division, Victor Company of Japan, Limited (JVC).

“ATI’s latest technology brings JVC tremendous value and ensures that our DTV products will be successful in the market. ATI’s CARD software support has been outstanding and we look forward to continuing this relationship.”

“ATI’s renowned DTV technology continues to generate success for the industry’s leading HDTV manufacturers,” said Daniel Eiref, Director of Marketing, DTV group, ATI Technologies Inc.

“Industry leaders, such as JVC, can take advantage of our mature CARD software technology to deliver flexible HD solutions. Together our Xilleon, demodulation and CARD technologies offer ‘one-stop-shopping’ for HDTV manufacturers.”

ATI’s CARD is a highly scalable and complete software stack and reference platform that enables HDTV manufacturing customers to produce ATSC or DCR HDTV products (for CableCARD solutions) with minimum investment in time and resources.

Featuring a fully compliant and tested modular architecture, the solution possesses the flexibility to allow consumer electronics manufacturers to inject their own level of customization that enables end-product differentiation.

Xilleon 226 integrates into a single chip all the processing, graphics, video, audio, and I/O (input and output) capabilities needed in a set-top box or DTV.

Included are a 300MHz MIPS CPU (central processing unit), dual-HD 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. Xilleon 226 also features spatial-temporal adaptive deinterlacing to ensure the highest quality video output.

About Victor Company of Japan, Limited (JVC)
Victor Company of Japan, Limited (JVC) was established in 1927 with the head office currently in Yokohama, Japan. JVC employs more than 35,580 people who are dedicated to research, development, manufacturing and sales of audio, visual, computer-related consumer, professional electronics and software, media products, and much more.

Using superior audio and visual technologies and communications networks, JVC will create new ways to communicate through music and images - vehicles that inspire people and expand the possibilities for creative expression.

For more information about JVC, visit: http://www.jvc.co.jp/english/company.html .

About ATI Technologies
ATI Technologies Inc. is the 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 graphics processor unit (GPU) provider and is dedicated to deliver leading-edge performance solutions for the full range of PC [Windows] and Mac desktop and notebook platforms, and for workstation, set-top and digital television, game console and handheld device markets.

ATI, with 2004 revenues of US $2 billion, 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).

For more information about ATI, visit:
wwww://http://www.ati.com