ATI and Intel Sign Cross-Licensing Agreement

MARKHAM, Ontario and SANTA CLARA, California -- ATI Technologies Inc., the world's largest supplier of graphics, video and multimedia solutions, and Intel Corporation today announced they have reached agreement on a broad cross-licensing agreement.

The cross-license agreement grants each company rights to certain patents owned by the other. This will help ATI and Intel to incorporate new features and technologies into their products, significantly benefiting their customers. ATI has also negotiated the right to build integrated chipsets for Intel microprocessor platforms. Additional details of the agreement were not disclosed.

"ATI and Intel are recognized technology and market leaders in their respective categories and this agreement will enable both companies to build upon those unique strengths," said Dave Orton, President & Chief Operating Officer, ATI Technologies Inc. "For example, the agreement will permit ATI to build our technology-leading RADEON™" graphics into chipsets for Intel's microprocessors."

"Intel is committed to bringing the most powerful computing solutions to the marketplace," said Louis Burns, Vice President and General Manager, Desktop Platform Group, Intel Corporation. "This cross-licensing agreement will enhance our efforts to deliver products to customers who are interested in streaming content, playing interactive games, encoding video or creating Internet content."

This agreement also settles pending litigation between the two companies.

Company Backgrounds
Founded in 1985, ATI Technologies Inc. is the world's largest supplier of graphics, video and multimedia solutions for personal computer and MAC platforms. The pioneer, innovator and market leader in the graphics industry, ATI provides cutting-edge technologies for the PC, set-top box, e-appliance and game console markets. The Company has more than 1,900 employees supporting customers from its headquarters in Markham, Ontario, Canada, as well as from offices in Barbados, France, Germany, Hong Kong, Ireland, Japan, Malaysia and the United States. ATI common shares trade on NASDAQ (ATYT) and the Toronto Stock Exchange (ATY).

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