ATI's Newest Graphics Cards Deliver an Unparalleled Visual Experience and Unmatched Value

Radeon'R' X1900 XT 256 MB, Radeon'R'X1650 Pro and Radeon'R'X1300 XT graphics cards offer extreme performance, mastering the most intense video games with ease

MARKHAM, CANADA -- (MARKET WIRE) -- 08/23/06 -- Consumers can now get high-end performance for gaming and digital entertainment without having to sacrifice power for cost. ATI Technologies Inc. (TSX: ATY)(NASDAQ: ATYT), a world leader in the design and manufacture of innovative 3D graphics, today launched the Radeon® X1900 XT 256 MB, Radeon X1650 Pro and Radeon X1300 XT graphics cards, offering the quality and performance of ATI's highest end cards for unmatched prices. The Radeon X1900 XT 256 MB, Radeon X1650 Pro and Radeon X1300 XT are scheduled to ship from retailers and system integrators worldwide on September 14th.

Built for today's most graphically demanding games, these new ATI graphics cards provide outstanding shader performance, simultaneous high dynamic range lighting and full screen anti-aliasing. CrossFire(TM) support means double the graphics performance potential. Gaming performance benchmarks show as much as 49% better performance than the competition(1).

"In the world of graphics price usually equals might. Our goal was to offer the quality and performance of ATI's highest-end cards to everyone from the technology novice to the avid gamer," said Rich Heye, Vice President and GM, Desktop Discrete Products, ATI Technologies Inc. "Now, for as little as $89 USD consumers can enjoy the Radeon X1300 XT and choose both price and performance."

The Radeon X1900 XT 256 MB is the latest addition to the award-winning Radeon X1900 series and continues to deliver extreme realism to gaming enthusiasts. The Radeon X1650 PRO is the debut product in the Radeon X1650 series and brings today's top games to life using extreme frequencies and with the superior image quality for which ATI products are renowned. The Radeon X1300 XT delivers unprecedented performance in an entry level graphics card.

Enhancing every aspect of PC entertainment, these video cards display one billion more colors than competing graphics cards(2) and support the latest high-definition formats, offering a flexible and flawless visual experience to even the most demanding technology enthusiasts. Whether using the PC to play DVD movies, edit home videos or share digital photos, ATI's newest graphics cards deliver crisp, vibrant digital images, smooth video playback and unmatched color display.

ATI's new graphics cards are Microsoft Windows Vista(TM) ready and supported by ATI's Catalyst® suite of software, ensuring customers have easy and ongoing access to software updates for performance, stability and added features.

Today ATI is also announcing the highest performing graphics cards available in the new Radeon X1950 family. For more information on this announcement, please see the relevant press release.

Estimated Street Pricing:

X1900 XT 256 MB: $279 USD EUR249 (including VAT)

X1650 Pro: $99 USD EUR89 (including VAT)

X1300 XT: $89 USD EUR79 (including VAT)

For more information please visit www.ati.com.

About ATI Technologies

ATI Technologies Inc. is a world leader in the design and manufacture of innovative 3D graphics, PC platform technologies 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 and Mac desktop and notebook platforms, workstation, set-top and digital television, game console and handheld device markets. With fiscal 2005 revenues of US $2.22 billion, ATI has more than 3,700 employees in the Americas, Europe and Asia. ATI common shares trade on NASDAQ (ATYT) and the Toronto Stock Exchange (ATY).

Important Information Regarding Forward-looking Statements

Certain statements in this news release, including but not limited to the demand for and availability of Radeon® graphics cards, may be considered "forward-looking". Such forward-looking statements are based on current expectations and entail various risks and uncertainties. Risks that could cause actual results to differ materially from such forward-looking statements include the demand and acceptance o f ATI's products and the introduction of competing products. We therefore cannot provide any assurance that such forward-looking statements will materialize. We assume no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. Additional information concerning risks and uncertainties affecting our business and other factors that could cause actual results to differ materially from any forward-looking statement is contained in our filings with Canadian and U.S. securities regulatory authorities, including our 2005 Annual Information Form and 2005 Annual Report filed on SEDAR at www.sedar.com. Our Form 40-F and other filings we make with the U.S. Securities and Exchange Commission are available on EDGAR at www.sec.gov.

Copyright 2006 ATI Technologies Inc. All rights reserved. ATI and ATI product and product feature names are trademarks and/or registered trademarks of ATI Technologies Inc. All other company and product names are trademarks and/or registered trademarks of their respective owners. Features, pricing, availability and specifications are subject to change without notice.

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(1) In comparison done between X1900 XT 256 MB and GeForce 7900 GT 256 MB on an AMDFX-60 at ultra high resolutions of 2048x1536 in the following games: FarCry, F.E.A.R, Quake 4, Serious Sam 2, Half Life 2: Lost Coast, and Half Life 2: Episode 1

(2) 10-bit processing compared to 8-bit processing. The Radeon X1900 XT 256 MB, Radeon X1650 PRO and Radeon X1300 XT can display 1.07 billion colors when attached to 10-bit displays.