ATI Reports Second Quarter Results

ATI Reports Second Quarter Results

March 24, 2005– ATI Technologies Inc. (TSX:ATY) (NASDAQ:ATYT) today announced a 31% increase in revenues and a 20% improvement in net income for the second quarter of fiscal 2005 as compared to the same quarter last year.

Quarterly revenues(1) grew $145 million to $608 million relative to the second quarter of fiscal 2004 as a result of strong sales in both the personal computer (PC) and digital consumer segments. Gross margin percentage was 34.2%. For the second quarter, net income and net income per share were $57 million and $0.22, respectively. Stock-based compensation costs(2) in the second quarter of fiscal 2005 totaled $10.3 million. Net income and net income per share excluding these costs and related taxes would have been $66 million and $0.25, respectively, as compared with $50 million or $0.20 in the second quarter of fiscal 2004.

“In addition to posting solid year-over-year results, ATI performed well in a seasonally down quarter,” said David Orton, ATI’s Chief Executive Officer. “Strong sales of discrete PC products helped to offset the anticipated seasonal weakness in our digital consumer business, which we expect will rebound nicely in the second half. With the best solutions for visual applications in the PC and digital consumer markets, we’re excited about our prospects for the rest of 2005 and beyond. The share repurchase plan announced separately today reflects the confidence of the board and management team in ATI’s long-term growth potential.”

(1) All dollar amounts are in U.S. dollars unless otherwise noted. All per share amounts are stated on a diluted basis unless otherwise noted. ATI Technologies Inc. reports under Canadian generally accepted accounting principles (GAAP).

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