ATI's innovative software suite features DIVX(tm) acceleration
and performance gains of up to 30 per cent*

MARKHAM, Ontario - May 16, 2003 - Starting today, computers featuring ATI's
RADEON(tm) based video cards get an extra performance boost thanks to the availability of CATALYST(tm) 3.4 from ATI Technologies Inc. (TSX:ATY, NASDAQ:ATYT). CATALYST is the industry's leading software suite that includes unified driver and software applications for ATI's RADEON family of graphics products. This software suite is based on the foundations of stability, performance, quality and innovation. Among its many new features, Version 3.4 is designed to improve video card performance by up to 30 per
cent* in certain applications.

"From the time we launched the CATALYST software suite, we have been maintaining the most aggressive update schedule in the industry," said Terry Makedon, Senior Product Manager of Software, ATI Technologies Inc. "Furthermore, all our drivers are fully approved by receiving Microsoft® Windows® Hardware Quality Labs (WHQL) certification. The fact that ATI has such large performance gains while having the best recognized image quality in the industry is a testament to our dedication to provide the world's best software for graphic cards."

Other CATALYST 3.4 enhancements include:
* Fullstream Acceleration of DIVX(tm) Player: Resulting from
the partnership ATI has with DivXNetworks, Inc., users of RADEON class products based on RADEON(tm) 9500 models and higher will enjoy improved DivX content playback. Through a unique accelerated post-processing algorithm (supported in DivX Player version 2.1 and higher) users can enjoy higher quality DivX content exclusively on select RADEON products.
* Enhanced Color Management system: A new control panel,
available for all RADEON users, has been designed for a unique user experience. Users can easily control the color of desktop content, gaming and video playback. Additionally, users can also now define profiles for individual applications and switch between them with the new hotkey feature.

* EAZYLOOK(tm): Designed as a revolutionary user interface for
home theater settings, EAZYLOOK seamlessly integrates ATI's REMOTE
WONDER(tm) and ATI's MULTIMEDIA CENTER software suite.

To ensure stable and reliable performance, ATI video card drivers found in CATALYST 3.4 have received Microsoft® Windows® Hardware Quality Labs (WHQL) certification. ATI continues the tradition of always providing their end users with Microsoft certified drivers for the highest quality.

CATALYST 3.4 is available for download on http://www.ati.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 2002 revenues in excess of US $1 billion, ATI has more than 1,900 employees in the Americas, Europe and Asia. ATI common shares trade on NASDAQ (ATYT) and the Toronto Stock Exchange (ATY).