ATI integrates TransDimension's USB On-The-Go OTG Core into new Imageon display co-processor for handheld devices

USB OTG Adds USB Plug n'Play Interconnectivity to PDAs and Smart Phones

MARKHAM, Ontario and IRVINE, CA, January 7, 2003 - ATI Technologies Inc. (TSX:ATY, NASDAQ:ATYT), the world's number one supplier of notebook graphics solutions, and TransDimension, the leader in USB connectivity solutions for embedded applications, today announce the integration of TransDimension's USB OTG technology in ATI's new IMAGEON™ display co-processor for handheld electronic devices such as PDAs (personal digital assistants) and data-enabled mobile phones. This milestone marks the adoption of USB OTG into the PDA and smart phone market.

With USB OTG, products using the new IMAGEON display co-processor will instantly gain access to the more than 1.3 billion USB-enabled products in existence today and will be able to connect directly with each other. As an example, a PDA could synchronize with a PC, print to a printer, receive type from a keyboard, exchange pictures with a digital camera or connect to speakers. "Handheld devices are becoming smarter, and it is increasingly important that those devices communicate and share information with each other," said Azzedine Boubguira, director of marketing, Handheld Products Group, ATI Technologies Inc. "While the industry is still waiting for new and reliable wireless connectivity interfaces to establish needed critical mass, USB is widely available, and we are glad to be first to embed USB OTG which adds more functionality and flexibility to standard USB."

Last month, QUALCOMM Inc. announced that it licensed TransDimension's USB OTG technology for inclusion in cellular handset controllers, and now with this announcement by ATI, the technology is being integrated into solutions for PDAs and smart phones as well. The adoption of USB OTG by ATI and other major manufacturers of solutions for consumer devices is an indication that the technology provides the solution to the rapidly growing requirement for direct connectivity. "USB OTG is the next logical step for major manufacturers of digital devices and we're seeing a rapid adoption rate right now," said David Murray, vice president of marketing for TransDimension.

Introduced as a supplement to the USB 2.0 specification in December 2001, USB OTG allows direct interconnectivity between computer peripherals and mobile devices using the popular and readily available USB standard. The benefit of OTG is that direct interconnectivity is possible without the aid of an external host, typically a PC, to handle the exchange of data. As an instrumental member of the USB Implementers Forum OTG committee, TransDimension has developed the first fully integrated USB OTG solution, the OTG243, designed specifically for embedded systems.

TransDimension's OTG243, which will be demonstrated at CES this week, was designed from the ground up, taking great care to minimize the impact on the limited systems resources present in mobile and peripheral products such as battery life. The company has also incorporated software developed by its subsidiary, SoftConnex, enabling a complete hardware and software solution.

About USB On-The-Go (OTG)
USB On-The-Go (OTG), a supplement to the USB 2.0 specification, eliminates the current limitation in USB that requires a PC to act as host and exchange data for its connected devices. Today, more than 1.1 billion products are designed with USB ports, making USB the dominant I/O connectivity standard in the market. However, the greatest limitation of USB today is the fact that it does not allow point-to-point communication between devices and therefore has not been widely adopted by consumer electronic devices, such as mobile phones and PDA's. As these devices are gaining in popularity and intelligence, the requirement for a direct connection to each other is also growing. The answer to this requirement is the standard called USB On-The-Go.

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 processor unit (VPU) 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 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).

About TransDimension
Headquartered in Irvine, California, TransDimension is a privately held company founded in 1997 to develop and market embedded and mobile connectivity solutions based primarily on intelligent USB technologies. TransDimension's product lines include integrated circuits, IP cores, software stacks and development tools that enable direct wired and wireless interconnectivity and I/O for a wide range of applications and mobile devices that until now have required an indirect means, such as a PC host, of exchanging data. SoftConnex, an independent subsidiary of TransDimension, delivers a complete software solution for the USB embedded market. Their flagship product, USBLink Host, provides the broadest platform support and the largest library of class drivers available for the embedded market. More information about TransDimension and SoftConnex can be found at http://www.transdimension.com and http://www.softconnex.com.