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ATI won the largest set-top design contract in North America with General Instruments based on the performance of our first-generation Set-Top Wonder reference design.

Another Undervalued Canadian Company beginning to get US recognition, don't wait for this to get away like RIMM did:

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During the quarter, ATI announced a number of design wins for its newest component, the award-winning RAGE 128. Following robust demand from Apple Computer, the Company was selected to power Gateway's new Essential consumer and E4200 corporate desktops, Hewlett Packard's Pavilion 8485 Home PCs, Acer's Power 8000 and 6100 corporate and Aspire 6100 consumer systems and Sony'sVAIO Digital Studio desktop PCs.

With overall performance to match the best 3D chips on the market today and unmatched support for digital video and HDTV, the RAGE 128 has the best combination of features and performance among graphics accelerators. During the quarter ATI also reported that the RAGE family of components are used across the entire range of desktop computers made by eMachines Inc.

In the latest market study from Mercury Research ATI vaulted into the number three position in mobile
graphics. During the first quarter of calendar 1999 ATI more than doubled its 1998 market share in the laptop market, reaching 15 percent in this rapidly growing segment. Driving towards the number one spot, ATI reported a long list of contracts with Apple, Compaq, Dell, Fujistu and Gateway for notebooks. Illustrating success in multiple market segments, ATI also earned the highest market share of graphics and video cards sold through the U.S. distribution channels, ever reported.

During the quarter, ATI announced several new products. The RAGE 128 PRO AGP 4X unveiled the next generation of components that combines architectural enhancements with higher clock frequencies to achieve a 50 percent improvement in 3D performance.

Also announced was the Company's Set-Top Box II reference design, a platform from which consumer
electronics OEMs can develop low-cost, high performance set-top boxes. The Set-Top Wonder II is a complete design including RISC CPU, memory, graphics, modem, audio, I/O, drivers and sample applications. ATI won the largest set-top design contract in North America with General Instruments based on the performance of our first-generation Set-Top Wonder reference design.

TORONTO, June 14 /CNW-PRN/ - ATI Technologies Inc.

``The combination of Libit and ATI silicon will dramatically enhance the television experience provided by the next generation set-top boxes,' states Jacob Tanz, vice president of sales, Libit Signal Processing Corp. ``This demonstration with ATI on the Microsoft TV platform is the next step in the evolution of the Internet through the TV. Set-top Wonder II combined with our low-cost Cable Modem is the beginning of a new era of ``cable-ready' TV's and PC's with the ability to deliver fast-internet access, IP Telephony, and video conferencing. The overall industry and consumer potential of a low-cost cable modems is immense.'

``The Set-top-Wonder(TM) II is a highly interactive reference design that requires uncompromising performance from the front-end components,' said Daniel Eiref, ATI's director of set-top box marketing. ``We searched the world for the very best cable modem technology to use in our Set-top-Wonder(TM) II reference design and we are partnering with Libit because of their leadership technology. ATI graphics & video chips, Libit cable modem, and Microsoft TV software each represent best-in-class products.'

The ATI Set-top-Wonder(TM) II provides a platform from which consumer electronics OEMs can develop low-cost, but high performance Microsoft TV-based set-top boxes. This reference design incorporates the Rage(TM) XL 3D and video graphics chip and Rage(TM) Theater video in/out companion chip from ATI, which together easily provide the world's most powerful set-top graphics subsystem. It is an ideal platform for OEMs designing a variety of consumer electronics devices including cable, satellite, and terrestrial set-top boxes, digital VCRs, and other devices requiring a high degree of interactivity or graphics/video performance.

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