ATI Licenses Tensilica’s Xtensa Configurable Processor

ONTARIO, Canada – October 18, 2004 – Tensilica, Inc. today announced that ATI Technologies Inc. (NASDAQ: ATYT) has licensed the Xtensa configurable processor. This license will allow ATI to add specialized, customized functions that complement ATI’s renowned graphics technology.

“In our evaluation, we were very impressed with the suitability of Tensilica’s Xtensa processor for numerous functions in our complex SOC designs,” stated Adrian Hartog, CTO, ATI. “By adding functions in Xtensa processors, rather than hand coding them in RTL, we can make these functions programmable, giving us plenty of flexibility for changing standards and feature sets.”

“We’re delighted that ATI has chosen our Xtensa processor,” stated Chris Rowen, President and CEO of Tensilica. “ATI was attracted to our low-power Xtensa configurable processor because it can be tailored for their exact design requirements and used for a wide range of applications.”

About ATI Technologies

ATI Technologies Inc. is a 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 visual processor unit (VPU) provider and is dedicated to deliver 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 markets. With 2003 revenues in excess of US $1.3 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).

About Tensilica

Tensilica was founded in July 1997 to address the growing need for optimized, application-specific microprocessor solutions in high-volume embedded applications. With a configurable and extensible microprocessor core called Xtensa, Tensilica is the only company that has automated and patented the time-consuming process of generating a customized microprocessor core along with a complete software development tool environment, producing new configurations in a matter of hours. For more information, visit www.tensilica.com.

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Editors’ Notes:

• Tensilica, and Xtensa are registered trademarks belonging to Tensilica Inc. 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.
• Tensilica’s announced licensees include Agilent, ALPS, AMCC (JNI Corporation), Astute Networks, Avision, Bay Microsystems, Berkeley Wireless Research Center, Broadcom, Cisco Systems, Conexant Systems, Cypress, Crimson Microsystems, ETRI, FUJIFILM Microdevices, Fujitsu Ltd., Hudson Soft, Hughes Network Systems, Ikanos Communications, LG Electronics, Marvell, NEC Laboratories America, NEC Corporation, NetEffect, Nippon Telephone and Telegraph (NTT), Olympus Optical Co. Ltd., S2io, Solid State Systems, Sony, STMicroelectronics, TranSwitch Corporation, and Victor Company of Japan (JVC).