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ATI Drives Multimedia in Next Generation Mobile Phones
Mobile phone manufacturers moving to ATI's Imageon 2282 to deliver multimedia capabilities to 2G and 3G phones

MARKHAM, ONTARIO, Aug 22, 2006 (CCNMatthews via COMTEX News Network) -- ATI Technologies (TSX:ATY)(NASDAQ:ATYT) reinforces its technology leadership as global handset manufacturers of 2G and 3G high-volume mobile phones move to the Imageon™ 2282 media processor. The Imageon 2282, now available in handsets from leading manufactures including the new Motorola KRZR and RIZR models, is the successor to the popular Imageon 2250, which is in over 60 million cell phones worldwide.

The Imageon 2282 delivers ground-breaking multimedia capabilities that enable global handset manufacturers including Motorola, Panasonic, HTC and LGE to bring 2G and 3G mobile phones to consumers. ATI's Imageon 2282 provides up to QVGA display, 3-mega pixel digital camera, CD-quality digital audio player, and CIF resolution digital video with camcorder, streaming video and video telephony support.

"ATI is proud of the partnerships we have with our global handset manufacturers," said Paul Dal Santo, VP and General Manager, Handheld Products Group, ATI Technologies. "Our partners continue to choose ATI because of our extensive product experience in the handheld arena, our leading edge multimedia technology and the breadth of our product offerings."

ATI is a leading media processor supplier and has shipped more than 150 million Imageon chips to its handset partners worldwide.

For more information on ATI's Imageon multimedia processors or a complete list of phones and mobile devices currently providing an unparalleled visual experience using ATI's technology, please visit: http://www.ati.com/products/handheld.html.

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 3,400 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 use of Imageon 2282 with Motorola KRZR and RIZR models, and the performance level of Imageon 2282, , may be considered "forward-looking". Such forward-looking statements are based on current expectations, and, accordingly, entail various risks and uncertainties. Risks that could cause actual results to differ materially from such forward-looking statements include the potential for unforeseen hardware or software conflicts or issues. 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.

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

SOURCE: ATI Technologies Inc.

For media inquiries:
ATI Technologies Inc.
Nicole Emanuel, Public Relations Manager
(905) 882-2600, Ext. 3907
nemanuel@ati.com
Other ATI Contacts:
High Road Communications
Sarah Vella
(416) 644-2270
svella@highroad.com
For investor relations support, please contact:
ATI Technologies Inc.
Zev Korman, Investor Relations
(905) 882-2600, Ext. 3670
zev@ati.com
www.ati.com

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding ATI Technologies's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.