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MARKHAM, ON – June 24, 2004 – ATI Technologies Inc. (TSX: ATY, NASDAQ: ATYT) today announced record quarterly revenues as a result of major sales increases in key market segments.

ATI reported revenues1 of $491.5 million for the third quarter of fiscal 2004 (ended May 31, 2004), a 38.2% increase over the third quarter a year earlier. Gross margin was up 2.7 percentage points to 35.3% over the same period. Net income2 per share was $0.19 for the quarter compared to $0.06 per share last year. ATIÂ’s cash position increased $39.6 million during the quarter to $508.0 million as of May 31, 2004.

“These results confirm that ATI clearly has the graphic technologies of choice,” said K.Y. Ho, Chairman of ATI. “Over the past year, ATI made significant sales gains in the add-in-board channel, as well as notebook, handheld chip and digital television (DTV) sectors, led by a very competitive portfolio of products.”
“Delivering on PCI Express, a key industry inflection point, provided us with nearly a clean sweep of tier-one OEM design wins,” said David Orton, Chief Executive Officer of ATI. “Our corporate strategy put us in the right place at the right time, just as it did with graphics on cell phones, the transition to digital television and the move to high-end graphics on notebooks. We’ve anticipated the visual age of computing, and now we’re delivering on that.”

We believe we are well-positioned for the fourth quarter of fiscal 2004 and the first half of fiscal 2005 based on the expected market share momentum in the desktop discrete business, the continued strength of the PC market and growth of our consumer business.

As a result of these factors, ATI currently expects revenues for the fourth quarter to be in the range of $510 - $550 million. Based on the ramp of new products in the fourth quarter, gross margin, as a percentage of revenues, is expected to return to the upper half of our target range of 32 – 35%. Operating expenses, excluding amortization of intangible assets and other charges, are expected to increase approximately 5% relative to the third quarter.