MARKHAM, ON/ Munich, Germany - March 7, 2005 - The IMAGEON® 2300 media processor from ATI Technologies Inc. (TSX: ATY, NASDAQ: ATYT) has been chosen by LG Electronics Co., Ltd, to power the industry's first hardware enabled 3D-gaming phone - its new SV360. Shipping later this year, the SV360 is the most powerful and most advanced 3D gaming phone offering a console-like gaming experience and ergonomics.

"LG chose ATI's IMAGEON 2300 for this new phone because they wanted a processor that could deliver an immersive and smooth gaming experience unlike anything previously available on a handset," said Paul Dal Santo, Vice President and General Manager, Handheld Products Group, ATI Technologies. "ATI is working with many wireless industry leaders to cultivate the mobile 3D ecosystem, bringing together content creators, hardware manufacturers and carriers, to help make mobile 3D gaming a reality."

The SV360, powered by IMAGEON 2300, enables compelling gaming on a higher resolution (320x240) landscape LCD display with crisp images rendered at over 10,000 triangles per frame - a visual quality threshold not previously attainable on mobile phones. Games and applications are able to fully benefit from the IMAGEON's hardware 3D acceleration through the OpenGL ES 1.0 mobile gaming API. The IMAGEON 2300's impressive rendering capabilities and low-power consumption, combined with the SV360's unique features such as the 3D user interface, gyroscopic controller and stereo speakers, deliver, for the first time, the high-quality, immersive gaming experience that consumers have been demanding for many years on a mobile phone.

ATI is the clear market leader in the design and manufacture of discrete media processors for mobile phones with more than twenty handset models marketed by many of the world's top manufacturers.

For more information on ATI's IMAGEON products, please visit http://www.ati.com.