Press Release

MARKHAM, ON, and MENLO PARK, CA - ATI Technologies Inc. (TSX: ATY, NASDAQ: ATYT), a world leader in the design and manufacture of innovative 3D graphics and There, Inc. an entertainment and communications software company that is creating a new category of online interaction, today announced their strategic marketing and development agreement. The agreement will pair There's innovative online destination with ATI's industry leading graphics products for the ultimate in online 3D communication.

The announced agreement will include cross-promotions between the two companies including bundling of the There software in ATI products and the integration and distribution of ATI graphics products in the development and promotion of the There environment.

There, launched on January 8th at the Consumer Electronics Show, is an immersive 3D world that gives people an online destination where they can hang out with their friends, express themselves via personalized avatars, and explore and shape the world around them. Leveraging the popularity of online socializing and the growth of online games, There represents a new category of online interaction and communication.

ATI is at the forefront of the 3D graphics industry, designing and manufacturing leading edge graphics solutions and quickly making them available to all segments of the market. ATI partners with innovative and groundbreaking companies like There to revolutionize the visual computing experience. With 3D graphics capabilities available in even the most value-priced computers, the 3D world is opened up to the mass market.

"Facilitating interactions between people is the Internet's killer application, and for the first time There will make online socializing a truly engaging and 3-dimensional experience," said Tom Melcher, CEO of There, Inc. "There is not just a new way to communicate - it's an online place, with real-world physics, natural scenery and sounds, and the ability to interact freely with people and objects. All of this is now possible because of 3D graphics technologies - like the RADEON products from ATI."

"It won't be long until the entire computing experience will be 3-dimensional. This is an impressive and innovative first step in that direction," said Dave Orton, President and COO, ATI Technologies. "There delivers an environment that is fun and immersive. ATI delivers the graphics technology and power required to fully enjoy the experience."

There's free public beta test is available at www.there.com. Graphics products powered by ATI technology are available from ATI and its many partners online and in retail outlets around the world. For more information on ATI's products and product partners, please visit www.ati.com.