ATIs DTV support in newest graphics chip to provide the low-cost

ATI's DTV support in newest graphics chip to provide the low-cost, high quality option for watching the digital TV revolution

TORONTO, - ATI Technologies Inc. (TSE:ATY) today announced that its newest generation technology, the RAGE 128(TM) graphics chip, can play an integral role in providing cost-effective digital TV viewing. The digital revolution began November 1, 1998 when some stations in the US began broadcasting programming in the new digital format.

Digital TV broadcasts consist of digital signals, created by broadcasters and then distributed via terrestrial over-the-air broadcast, cable, satellite and even land-based transmission technology. The signals are then MPEG decoded and displayed on, for example, a digital TV set.

As with DVD, where PC-based DVD ROMs provide a great high volume complement to DVD consoles, DTV can be enabled through the PC, an implementation expected to quickly become one of many places where consumers will enjoy the benefits of digital television. (A February, 1998 estimate from industry analyst Mercury Research indicated DVD ROMs would prove to outship dedicated DVD consoles by a factor of 10 by the end of the year.)

With a PC enabled with a graphics accelerator that can handle the HD0 DTV format MPEG decoding, and a low cost DTV receiver card, DTV viewing on the PC becomes an affordable option. A graphics add-in card and receiver board, with an approximate combined cost of well under $500, can provide the highest quality DTV viewing at a fraction of the several thousand dollars it costs for the new high definition digital TV sets and DTV tuner/decoder boxes.

If a graphics accelerator board or set top device that features ATI's RAGE 128 chip and ATI's RAGE Theater(TM) video encode/decode (video in and video out) chip is used, DTV can be viewed on conventional TV sets, including large screen or wide screen TVs. This provides an opportunity to preserve the investment in those giant screen TVs.

ATI at the forefront of the industry's latest inflection point
``DTV represents an important inflection point in the computer industry, a point in time when new technology spawns a completely new market,'' said Ed Grondahl, vice president of product marketing at ATI. ``ATI is a current leader in the 3D, Accelerated Graphics Port (AGP) and Digital Flat Panel markets, the most recent inflection points, and we are committed to taking a leadership role in the DTV revolution.''

RAGE 128 includes a DTV, MPEG-2 (Motion Picture Experts Group) decode engine, providing increased capacity over other graphics chips to fully handle all HD0 level modes of DTV. Also, the expanded capacity of RAGE 128's resolution filtered scaling means video images can be scaled to fit any size monitor from HD0 modes. Higher resolution DTV modes can be supported through external decoders.

ATI and Microsoft - committed to enabling DTV on the mainstream PC
In developing the RAGE 128 chip and its DTV capabilities, ATI worked closely with Microsoft Corp., which is dedicated to enabling digital TV on the mainstream PC platform architecture. To accomplish this, the PC must have a high quality graphics chip to render the video images and provide the MPEG decoding.

``We worked with ATI on this development because of their advancements in the area of MPEG acceleration,'' said Dave Marsh, the Technical Evangelist for TV and Video at Microsoft. ``Thanks to the high speed Motion Compensation and Inverse DCT MPEG acceleration capabilities that exist in the Rage 128 chip, the ability to display Digital TV will become a mainstream PC capability. We look forward to the day when this level of acceleration becomes a standard feature of all graphics chips. The RAGE 128 is also doing high quality video scaling, this capability is essential in order to decouple display resolution from broadcast resolution.''

ATI poised to lead the set top DTV market
ATI's recent success in the set top market, where it has been selected by General Instrument to provide full graphics, video and TV-out functionality for millions of set top cable boxes, positions the company well for the DTV set top market. Most TVs require an external DTV tuner/decoder box and ATI's highly integrated graphics technology is ideal to provide the graphics and video acceleration for these set top units. More than 67 per cent of US homes with TVs receive their TV signals via cable companies.

The US Congress has stipulated that TV stations in the top 10 markets must begin digital broadcasts by May, 1999. Many are beginning early, as with the November 1st start by some networks and stations. Stations in the top 30 markets must begin digital broadcasts by November, 1999. Digital broadcasting will start with mainly movies, but there will also be such popular programming as the Tonight Show with Jay Leno beginning in the spring of 1999 and there will also be some high profile sporting events.

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 the world's leading supplier of video and 2D/3D graphics accelerators to OEM and retail customers.

Founded in l985, ATI employs more than 1,300 people at headquarters in Thornhill, Ontario, and in offices in the United States, Germany, France, the United Kingdom, Ireland, Barbados, Malaysia, Japan and Hong Kong. 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. Copyright (C) ATI Technologies Inc., 1998. 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.

SOURCE ATI Technologies Inc.
Web Site: at http://www.atitech.com