ATI Raises the Bar of Handheld 3D Graphics with the Imageon 2380 and Imageon 2388

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Markham, Ontario/ Munich, Germany — January 25, 2006 – With the explosion in demand for quality visual experiences on the cell phone, ATI Technologies Inc. (TSX: ATY, NASDAQ:ATYT) has leveraged its extensive experience with video and graphics to deliver the latest in handheld technologies with the Imageon® 2380 and the Imageon® 2388. A complete audio and visual solution, the Imageon 2380 and Imageon 2388 offer end users an enriched multimedia and gaming experience by leading the industry with the implementation of OpenGL ES 1.2, which allows developers to push the boundaries of 3D content development.

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“3D gaming has become a strong, compelling feature in the handheld market and the Imageon 2388 delivers a feature-rich solution that satisfies our demands,” said Hoo Jong Kim, Senior Manager, SK Telecom. “Having partnered with ATI in the past to lead the way with 3D gaming on the mobile phone, SK Telecom is excited about the potential of the latest generation of Imageon media processors.”

OpenGL ES 1.2 allows game developers and content creators to bring more realistic detail in environments, lighting and objects, while maintaining a high level of interactivity. By alleviating a significant amount of work being done by the main processor, the Imageon 2380 and Imageon 2388 can efficiently produce 3D visual effects and drive animation with quality previously unattainable on a cell phone.

“We’ve had the unique opportunity to work intimately with ATI’s Imageon 2380 and uncover all the possibilities that the chip gives game developers like us who are looking to create unique games that excite end users,” said Jonas Eneroth, President of Climax’s Handheld Studio. “By supporting OpenGL ES 1.2 along with high-resolution (640 x 480) display support, the Imageon 2380 opens up a whole new world of advanced, detailed rendering that makes it possible to bring high-end immersive experiences on handsets. As game developers, we can now deliver an end user experience that can hold its own or even augment our console, portable and PC projects.”

“As an innovator in the field of mobile games, Gameloft is always eager to push the boundaries of technology and with the Imageon 2380 and Imageon 2388, ATI has introduced a new media processor that has captured our attention,” said Michel Guillemot, President, Gameloft. “At Gameloft we want to be bounded only by where our imagination will take us and not by the technology. These new media processors allow us to further position mobile 3D gaming as an exciting and important market to watch.”

“We are approaching the level of graphics and video complexity on the handheld that end users can experience with consoles, PCs and digital televisions and with ATI’s introduction of the Imageon 2380 and Imageon 2388, we have taken a large step forward in meeting this milestone,” said Andy Thompson, Director, Marketing – Handheld Products, ATI. “These new Imageon media processors offer customers a complete low power 3D graphics, video and audio solution on one chip that handles all multimedia work without burdening the baseband.”

The flexible and programmable audio engine in the new Imageon processors enable new features such as positional 3D sound, CD-quality ring-tones and music phones with high-quality stereo recording and playback. Supporting more than seventeen audio components (including AMR, AAC LC, aacPlus™ enhanced, MP3, Real Audio, WMA and MIDI), ATI provides a full set of industry standard audio solutions optimized for the Imageon architecture’s low power consumption and low memory footprint.

The Imageon video engine enables a mobile digital camcorder/player and supports advanced features such as video-telephony and video-streaming. Both media processors support video playback and recording at up to 30 frames-per-second in industry standard MPEG-4 and H.263/H.263+ formats. In addition, they support the latest video formats such as H.264 and Real Video offering compatibility for video streaming applications.

ATI’s PowerPlay™ power management technology is a critical feature integrated in each and every Imageon media processor offering the lowest power consumption at all levels of functionality. All Imageon components come with the necessary software drivers and middleware that is compatible across the product line, offering OEM customers a time-to-market advantage to introduce the latest multimedia technologies with ease.

ATI is a leader in the design and manufacture of discrete media processors for mobile phones with more than 35 handset models available in the market from many of the world’s top manufacturers and is currently sampling the Imageon 2380 and Imageon 2388 to customers.