ATI Technologies Inc.
TSX : ATY
NASDAQ : ATYT

ATI Technologies Inc.

August 18, 2005 18:25 ET

ATI Responds to 'Mini-Tender' Offer

MARKHAM, ONTARIO--(CCNMatthews - Aug. 18, 2005) - ATI Technologies Inc. (TSX:ATY)(NASDAQ:ATYT) announced today that it had received notification that on August 17, 2005, TRC Capital Corporation commenced an unsolicited, below-market "mini-tender" offer to purchase up to 3,000,000 common shares of ATI, or approximately 1.19% per cent of ATI's outstanding common shares, at a price of CDN$13.65 per common share.

ATI wishes to inform its common shareholders that it does not in any way recommend or endorse the TRC Capital Corporation offer and that ATI is in no way associated with TRC Capital Corporation, the offer or the offer documentation. ATI expresses no opinion regarding this offer.

ATI cautions its common shareholders that the offer is being made at a 3.87% discount to the closing price of CDN$14.20 per common share on the Toronto Stock Exchange (the "TSX") and US$11.80 on the NASDAQ National Market (the "NASDAQ") on August 16, 2005, the last trading day before the offer commenced, and is below yesterday's closing price of CDN$14.43 on the TSX and US$11.86 on the NASDAQ.

"Mini-tender" offers seek less than 5 per cent of a company's shares, thereby avoiding many disclosure and procedure requirements of the Securities and Exchange Commission ("SEC") and the Canadian Securities Administrators. Regulators in both Canada and the United States have expressed concerns with "mini-tender" offers. The SEC has issued an investor alert on its website at www.sec.gov/investor/pubs/minitend.htm. The Ontario Securities Commission has also issued an investor alert ("Approach mini-tenders with caution!") accessible at: http://www.osc.gov.on.ca/Investor/Alert/ia_20040518_mini-tenders.jsp.

ATI shareholders are advised to consult with their investment advisors and to exercise caution in evaluating this offer and to take into account the offer price in comparison to the market price of ATI's common shares.

ATI shareholders who have already tendered are advised that they may withdraw their common shares by providing the written notice described in the TRC Capital Corporation offering documents prior to the expiration of the offer at 12:01 a.m. (Toronto time) on September 16, 2005.

About ATI Technologies

ATI Technologies Inc. is the world leader in the design and manufacture of innovative 3D graphics and digital media silicon solutions. An industry pioneer since 1985, ATI is the world's foremost graphics processing unit (GPU) provider and is dedicated to delivering leading-edge performance solutions for the full range of PC and Mac desktop and notebook platforms, workstation, set-top and digital television, game console and handheld device markets. With 2004 revenues of US $2 billion, ATI has more than 2,700 employees in the Americas, Europe and Asia. ATI common shares trade on NASDAQ (ATYT) and the Toronto Stock Exchange (ATY).

Copyright 2005 ATI Technologies Inc. All rights reserved. ATI and ATI product and product feature names are trademarks and/or registered trademarks of ATI Technologies Inc. All other company and product names are trademarks and/or registered trademarks of their respective owners. Features, pricing, availability and specifications are subject to change without notice.

For media or industry analyst support, visit our Web site at http://www.ati.com

Contact Information

  • ATI Technologies Inc.
    Chris Evenden
    Director, Public Relations
    (905) 882-2629
    cevenden@ati.com
    or
    Other ATI Contacts:
    Porter Novelli Canada
    Trevor Campbell, Director
    (416) 422-7202
    trevor.campbell@porternovelli.com
    or
    For investor relations support, please contact:
    ATI Technologies Inc.
    Zev Korman, Investor Relations
    (905) 882-2600, Ext. 3670
    zev@ati.com