ATI and Nokia announce strategic relationship to enable new mobile multimedia experiences

May 04, 2006, Markham, Canada, and Espoo, Finland - ATI Technologies Inc. and Nokia today announced a long-term strategic relationship to bring enhanced mobile multimedia experiences to Nokia customers. As leaders in their respective industries, ATI and Nokia are now working closely together to drive high quality multimedia experiences such as music playback, 3D gaming, mobile TV, video and more for Nokia mobile device users worldwide.

"Working with ATI underscores the commitment that Nokia has in providing unparalleled mobile multimedia experiences to consumers" said Ilkka Raiskinen, Senior Vice President, Multimedia Experiences, Nokia. "With the mobile device now at the center of people’s lives, we want people to have access to fantastic mobile content when and where they want. We are announcing our collaboration with ATI now, so that developers have the next 12 to 18 months to be innovative and create world class mobile multimedia experiences"

With mobile devices becoming ever more powerful and complex, ATI and Nokia are working to drive the complexity out of multimedia development by promoting open standards and providing integrated hardware, software and tools. In this way, developers need only create content once for consumers to enjoy on a range of devices. Specifically, ATI aims to provide a dedicated tools chain and software development kit (SDK) for developers in the fall of 2006. ATI and Nokia will also hold a series of joint workshops in the second half of this year to showcase the environment to key developers.

"Our role is to enable all content, from ultra-high quality music playback to 3D gaming, and we’ll jointly guide and support the members of the content development community as they focus on creating amazing user experiences" said Paul Dal Santo, Vice President and GM, Handheld Products, ATI. "With a shared vision of how multimedia impacts the mobile market, Nokia and ATI are providing much needed direction and a framework to move the whole industry forward"

Conference Call Information
ATI Technologies Inc. will host a conference call for investors and analysts today 11:00 AM (EDT) to discuss this announcement. To participate in the conference call, please dial 416-641-6117 ten minutes before the scheduled start of the call. No password is required. Replays of the conference call will be available through May 11, 2006 by calling 416-695-5800. The passcode is 3185766.

Important Information Regarding Forward-looking Statements
Certain statements in this news release, including but not limited to the benefits that will result from a long-term strategic relationship with Nokia, the delivery of dedicated tools chain and SDK for developers in the fall of 2006, and the effect of the ATI’s and Nokia’s long-term strategic relationship will have in the mobile market, 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 introduction of new products by our competitors, rapid and frequent changes in technology, consumer demand for multimedia mobile products, and the successful and timely development of multimedia products for the mobile market. 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.

About ATI Technologies
For more information about ATI’s Imageon graphics products, please visit www.ati.com/handheld.

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 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 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).

About Nokia
Nokia is a world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Nokia connects people to each other and the information that matters to them with easy-to-use and innovative products like mobile phones, devices and solutions for imaging, games, media and businesses. Nokia provides equipment, solutions and services for network operators and corporations.

Contact Information

Chris Evenden

Director, PR

ATI Technologies

Contact via E-mail