ATI announced its second consecutive record revenue quarter, driven by sales increases in both the personal computer and consumer product lines. ATI reported revenues1 of $ 572.2 million for the fourth quarter of fiscal 2004 (ended August 31, 2004), a 50.3% increase over the fourth quarter a year earlier. Gross margin declined 1.8 percentage points to 33.8% over the same period of the previous year as a result of costs associated with the ramp of a number of new desktop products. ATi expect leadership in graphics and multimedia technologies for both digital consumer products and PCI Express-based PCs to continue driving growth for ATI in fiscal 2005. As a result, ATI currently expects revenue for the first quarter of fiscal 2005 to be in the range of $ 600 to $ 640 million.

ATI announced its second consecutive record revenue quarter, driven by sales
increases in both the personal computer and consumer product lines. ATI reported
revenues1 of $ 572.2 million for the fourth quarter of fiscal 2004 (ended August
31, 2004), a 50.3% increase over the fourth quarter a year earlier. Gross margin
declined 1.8 percentage points to 33.8% over the same period of the previous
year as a result of costs associated with the ramp of a number of new desktop
products. Net income2 per share was $ 0.24 for the quarter compared to $ 0.09 last
year. ATI’s cash position increased $ 40.9 million during the quarter to $ 548.9
million as of August 31, 2004.

ATI’s fiscal 2004 annual results also produced significant revenue and
earnings growth over fiscal 2003. Revenues for the full 2004 fiscal year grew
44.1% to $ 2.0 billion. Net income for the year increased nearly six-fold to
$ 0.80 per share from $ 0.14 per share in fiscal 2003.“Our corporate strategy
continues to produce returns,” said David Orton, ATI’s Chief Executive Officer.

“Our PCI Express desktop product line-up is the most competitive product
family on the market, resulting in tremendous customer acceptance. In addition,
the growth rate of our digital consumer business continues to outpace the
market, based on ATI’s innovative products for use in cell phones and digital
televisions.”

Outlook

We expect our leadership in graphics and multimedia technologies for both
digital consumer products and PCI Express-based PCs to continue driving growth
for ATI in fiscal 2005. As a result, ATI currently expects revenue for the first
quarter of fiscal 2005 to be in the range of $ 600 to $ 640 million. Gross margin,
as a percentage of revenues, is expected to be between 33 and 34%. Operating
expenses in the first quarter (excluding the expensing of stock options) are
expected to grow between 5 and 10% relative to the fourth quarter of fiscal
2004.

In accordance with Canadian generally accepted accounting principles,
beginning with the first quarter of fiscal 2005, ATI will expense compensation
costs associated with stock options granted to employees after September 1,
2002. The charge in the first quarter of fiscal 2005 will be approximately $ 7.0
million. ATI continues to be optimistic about its outlook for fiscal 2005, but
anticipates some seasonality, where the first quarter is strong, followed by a
slightly weaker revenue and profit profile for the second and third quarters.
The fourth quarter is expected to build off of the third quarter.