ATI Announces Preliminary Revenue Estimate for Fourth Quarter

ATI Announces Preliminary Revenue Estimate for Fourth Quarter

ATI Technologies Inc. (TSX:ATY)(NASDAQ:ATYT) today announced that consolidated revenue for the fourth quarter of fiscal 2006 is currently expected to be approximately $520 million(1). This is below the low end of the revenue range provided on June 29, 2006, before the announcement of the acquisition agreement with Advanced Micro Devices, Inc. (NYSE:AMD).

The anticipated revenue shortfall is due primarily to lower sales volumes of integrated chipsets for Intel-based platforms. In addition, handheld revenue was lower than expected, reflecting a supply chain adjustment by one of ATI’s major customers. We believe this adjustment is temporary in nature and should not have a long-term impact on revenue.

“While we anticipated a decline in future Intel-based chipset business following the announcement of the acquisition agreement with AMD, the decrease occurred much sooner than we expected,” said Dave Orton, CEO of ATI Technologies Inc. “Our other product lines are quite healthy and the response to our recent handheld, digital TV and GPU product announcements has been extremely positive from both customers and from the overall market.”

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