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ATI Technologies and DivXNetworks Form Strategic Relationship to Advance Digital Video Performance and Quality

January 9, 2003

Optimizations in ATI’s RADEON 9500 & RADEON 9700 Product Families and Cutting-Edge DivX(TM) Video Player Dramatically Increases Playback Speed and Quality

San Diego & Markham, Ontario–Jan. 9, 2003– ATI Technologies Inc. (NASDAQ:ATYT) and DivXNetworks, Inc. today announced a strategic development and marketing agreement to combine ATI’s innovative FULLSTREAM technology with widely popular DivX video compression technology for an enhanced digital video experience.

In the first collaboration between the two companies, ATI’s new Visual Processing Units (VPU) will integrate DivX video compression technology and offer optimized playback of high-quality DivX video files. Thanks to hardware and software optimizations performed by ATI and DivXNetworks, RADEON 9500 & 9700-based products significantly increases video performance (up to 50% using post-processing) and reduce CPU usage when decoding DivX video. DivX video compression technology is a hugely popular video encoder / decoder thanks to the great reduction in encoded video file size with hardly any loss of picture quality. DivX technology has become a standard for high-quality IP video, with over 75 million downloads and an average of over 3 million downloads per month.

“DivXNetworks is a pioneer in enabling the delivery of DVD-quality digital video over the Internet, and we’re excited to combine our cutting-edge video graphics card technology with their leading video compression technology,” said Rick Bergman, Senior Vice President, Marketing and General Manager, Desktop, ATI Technologies Inc. “The synergy in harnessing the power of hardware and software will create higher visual quality, significantly faster playback time and a truly amazing digital video experience for consumers.”

“As a recognized leader in the video graphics industry, ATI represents a valuable strategic development partner for DivXNetworks,” said Jordan Greenhall, co-founder and CEO of DivXNetworks www.divxnetworks.com. “By uniting the power of DivX with ATI’s innovative advanced graphics technology, we can take the PC video experience to an entirely new level, significantly improving playback performance and visual quality.”

“ATI is an excellent partner to help DivX video achieve cutting-edge performance with the leading series of graphics chip technology,” said Tay Nguyen, vice president of operations at DivXNetworks. “Products based on ATI’s RADEON 9500 & 9700 VPUs, with their extensible programming capabilities, are the video cards of choice for serious multimedia applications. Our joint development efforts will optimize DivX video to reach the unparalleled speed and visual performance that DivX power users demand.”

RADEON 9500 & 9700 series VPUs feature fast 3D graphics performance, sophisticated real-time visual effects, unsurpassed image quality and cutting-edge video features. For more information, visit www.ati.com. The most recent DivX codec, called a “revolutionary product” by Tom’s Hardware Guide, currently ranks as the most downloaded multimedia application on CNET’s Download.com. For more information on DivX technology, visit www.divx.com.

About DivXNetworks

DivXNetworks is a leading technology company that enables the rapid proliferation of video content over Internet Protocol (IP) networks by combining the lightweight, ubiquitous access of the Internet with DVD-quality video performance. The company’s approach is built upon the success of the DivX(TM) codec, a leading standard for MPEG-4 compatible video distribution with over 75 million users worldwide, and the DivX Open Video System(TM), a next-generation content delivery system that provides unsurpassed aggregation, promotion, and distribution of video content for mass markets. DivXNetworks is headquartered in San Diego, California, with a satellite office in Los Angeles. For more information about DivXNetworks, visit https://www.divxnetworks.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 process unit (VPU) provider and is dedicated to delivering 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 2001 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).

Copyright 2003 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.

For media or industry analyst support, visit our Web site at https://www.ati.com

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