ATI announces the ATI DVD Player

Leads the industry as software DVD solution granted the Designed for Windows logo

With the RAGE PRO TURBO(TM) AGP 2x chip, the lowest cost, highest quality DVD
solution on the market

TORONTO, Ontario, May 21 /PRNewswire/ -- ATI Technologies Inc. (Toronto: ATY - news) today strengthened its
lead in the DVD industry with the announcement today that its ATI DVD Player(TM) has been qualified to use
Microsoft(TM)'s Designed for Windows 98 and Designed for Windows 95 logos. The ATI DVD Player, developed in
conjunction with Quadrant International Inc. of Malvern, PA, provides computer manufacturers with the lowest cost,
highest quality DVD solution on the market when coupled with ATI's RAGE PRO TURBO(TM) Accelerated Graphics
Port 2X (AGP) chip with motion compensation. 

ATI and QI will also make a version available for non-ATI graphics products, allowing OEMs to implement software
DVD across a full range of DVD-enabled product lines. These products, along with the ATI DVD Player version are
eligible to be submitted to Microsoft Windows Quality Hardware Labs (WHQL) for logo testing. 

The logo testing provided by WHQL is a key milestone for increasing user satisfaction and reducing support costs.
Products which pass this qualification may use the ``Designed for Windows'' logo, a symbol to customers that these
products meet world-class standards for usability and total cost of ownership. 

The ATI DVD Player was qualified on a system featuring a 333 MHz Intel Pentium II with MMX, 32MB RAM using
ATI RAGE Pro AGP graphics. The DVD Player also supports DVD playback in PCI systems on high end Pentium IIs,
although performance and quality may vary depending on the system. 

``Microsoft continues to encourage innovation and value in DVD by working with companies such as ATI to make
solutions that provide the best possible quality at a reasonable cost to consumers,'' said Peter Biddle, DVD technical
evangelist at Microsoft Corp [Nasdaq:MSFT - news]. ``The ATI-configured solution leads the industry in receiving
Windows 95 and Windows 98 logos for DVD playback supporting DirectShow, thus ensuring support for next generation
DVD applications today and into the future.'' 

Fully compatible with Windows 98 

The ATI DVD Player is fully compatible with Windows 98, which provides native support for DVD drives and with the
Windows 98 DirectShow multimedia API that offers the highest level of compatibility for multimedia applications.
Windows 98 will be released in June of this year. 

``Microsoft is excited to see that the ATI DVD Player has passed the rigorous Windows Logo testing standards on
Windows 98,'' said John Temple, product manager for Microsoft Corp. ``The native support for DVD in Windows 98
combined with the ATI DVD Player and the ATI RAGE PRO TURBO chip provide a great way to add DVD
capabilities to a PC.'' 

Certification for Dolby and Macrovision also announced 

The ATI DVD Player as well has received certification from Dolby Laboratories Licensing Corp. and, through ATI's
ImpacTV2(TM) TV-out chip, ATI DVD Player also supports Macrovision 7 copy protection for legal display of
protected DVD content. Both are required for full implementation of DVD systems that connect to TV sets. 

``ATI has led the DVD charge, with its RAGE PRO TURBO chip and motion compensation in more systems from the
top 10 computer makers than any other vendor,'' said Alan McCann, director of board marketing at ATI. ``To our
customers, Microsoft qualification means ATI products meet world-class standards and the ATI DVD Player
qualification will help us continue our lead in the DVD market.'' 

``Quadrant International has worked very closely with ATI, marrying the capabilities of the RAGE PRO TURBO chip
with those of our DVD decoding software technology,'' said Leonard Sharp, vice president of sales and marketing at
Quadrant International Inc. ``Our collaborative efforts with ATI were instrumental in achieving full WHQL qualification
for this DVD solution.'' 

RAGE PRO TURBO chip at the heart of ATI's DVD software solution 

At the heart of ATI's DVD solution is the RAGE PRO TURBO chip, the best platform for software DVD
implementation. The RAGE PRO TURBO's 4-tap horizontal and 2-tap vertical highest quality video scaler supports full
720x480 video resolution and provides the best quality DVD playback at all graphics resolutions. 

Other RAGE PRO TURBO features include de-interlacing filter, video on graphics overlay, multistream video,
color-space conversion, scatter-gather bus-master and planar YUV mode for the sharpest, most brilliant DVD images on
the PC. 

The RAGE PRO TURBO chip's motion compensation technology assists the DVD software to produce the highest
quality DVD images and playback. Motion compensation, along with an AGP 2X system, achieves full frame rates, and
reduces CPU overhead when using software DVD, freeing up system resources to simultaneously perform other tasks,
such as using email and Web browsing. Without hardware assist, full frame rates needed for quality DVD playback are
not possible. 

ATI's DVD advantage available for the mobile market 

The full features, performance and DVD advantage of the RAGE PRO TURBO chip and the ATI DVD Player is also
available for the mobile platform. ATI's RAGE LT PRO(TM) notebook chip offers notebook OEMs the opportunity to
add full DVD acceleration to mobile computers, enabling business users to take advantage of not only the best images
DVD can produce, but also the high storage capacity of the DVD disk. (WHQL qualification for the ATI DVD Player
on the mobile platform will be announced separately.) 

RAGE PRO TURBO's Motion Compensation provides DVD at no additional cost 

The high quality achieved through the ATI DVD Player and ATI's motion compensation that is built into every chip,
offers computer-makers who opt for the RAGE PRO TURBO chip the opportunity to include a full DVD solution at
virtually no additional cost, as it removes the need to add DVD hardware. System costs can be reduced by as much as
$100 if dedicated DVD hardware is not required. 

The ATI DVD Player is ideal for an array of today's most popular microprocessors, from 266MHz Celeron or MMX
Pentium II systems upwards (WHQL qualification for these platforms and other 266MHz systems to be announced
separately). 

The ATI DVD Player provides modular video decoding which produces increasing quality as the power of the CPU
increases. As well, multiple algorithms utilized in the software provide for high performance video acceleration, regardless
of the VGA technology or CPU speed. Algorithms have also been maximized to take full advantage of the CPU and
operating system, lowering CPU utilization. 

Benefits and features of the ATI DVD Player include full frame rate operation, with no frame drops, even on the lowest
recommended 266MHz processor. As well, systems can be operated at any resolution or color depth, full scalability of
the video window, up to full screen, and compatibility for MCI and Microsoft DirectShow. 

Price and Availability 

The ATI DVD Player will be available in June, 1998, to all OEM customers at a price range of $10 for minimum
quantities of 10,000 units (exclusive of Dolby licensing fees.) 

About Quadrant International Inc. 

Quadrant International(QI) is an expert provider of digital video solutions to manufacturers of PCs, consumer electronics
products and PC-based convergence devices. QI addresses the convergence of business and consumer markets through
a full line of hardware and software products designed around a unique modular architecture that provides a consistent
look and feel across technology platforms. Delivering the best overall system performance and integration, QI provides
flexible and cost-effective solutions to a spectrum of OEM and technology partners. Founded in 1994, QI is
headquartered near Philadelphia PA and has offices in California, Japan and Germany. 

ATI Corporate Profile 

ATI Technologies Inc., the world's largest supplier of 3D graphics and multimedia technology, designs, manufactures and
markets innovative and award- winning multimedia solutions and graphics components for personal computers. An ISO
9002 company, ATI is one of the world's leading suppliers of video and 2D/3D graphics accelerators to OEM and retail
customers. Founded in l985, ATI employs more than 1,000 people at headquarters in Thornhill, Ontario, and in offices in
the United States, Germany, France, the United Kingdom, Ireland, Japan and Malaysia. ATI is a public company whose
shares trade on the Toronto Stock Exchange. 

For other ATI news releases visit our web site at http://www.atitech.com. All company and/or product names are
trademarks and/or registered trademarks of their respective manufacturers. Features, pricing, availability and
specifications are subject to change without notice.