ATI to play catch up in 2006

The year 2005 was hard for graphics and multimedia solutions
designer ATI Technologies as it faced some engineering challenges with its
high-end products. But now, the company is gearing up to regain lost ground.

It is slashing its prices in order to raise price performance
value of its products and is also launching new products in the market to
capture the top end. The company plans to launch R560, R570 — the two
mid-range products by mid 2006.

Buoyed by the growth in the PC and mobile market in India,
ATI is bullish on the Indian market for growth. Globally, the PC business is
becoming a smaller share of the company's overall business because of the
growth in the console and the handheld market. In India, it is quite the
opposite with the Indian PC business witnessing a growth of 30 percent
year-on-year and cellphones also becoming ubiquitous.

RAJSHEKHAR BHATT: Present in four PC platform segments - motherboard with on board graphics, discrete graphics, workstation products and all-in-ones

Chris Hook, ATI Technologies GmbH EMEA Public Relations
Manager said, "We are targeting markets like India where they are looking
for that blend of price and functionality. We are particularly excited about the
Indian and African market as companies are talking about one billion new
cellphones by 2008 in India and Africa. Also with PC market booming in the
country, these are the two segments where we see growth coming from."

To take advantage of this growing opportunity in India, the
company had acquired Hyderabad-based CuTe Solutions last year.

Engineers apart from working on mobile solutions are also
working on a project called RV 535 — which is a refresh of ATI's X1600 class
of products. They are also doing mainstream desktop design for the entire world,
developing sound codec technology, etc.

The company is also in the process to double its Hyderabad
center headcount. Hook said, "We want to grow but most important is to get
the best people. We are bullish on the Indian market which can be seen in the
kind of investment we are doing in training of engineers, sales and marketing,
R&D, channel programs, etc."

Speaking about the company's product portfolio, Rajshekhar
Bhatt, Country Sales Manager India, ATI Technologies said, "Around PC
platform, we have four segments where we are present. These include integrated
graphics segment - motherboard with on board graphics, discrete graphics i.e.
the standalone graphics, workstation products and all in ones — like the ones
used in media center."

PRAGATI SIMLOTE

(CyberMedia News)