ATI Buys XGI
Posted on: 03/07/2006 02:11 PM

TORONTO & SHANGHAI, China--(BUSINESS WIRE)--March 6, 2006-- ATI Technologies Inc. (NASDAQ:ATYT) (TSX:ATY) today announced the acquisition of Shanghai-based Macrosynergy, an XGI Technology alliance company, as well as related personnel working out of XGI Technology's Santa Clara, California location. With the acquisition ATI immediately increases its presence in Shanghai, China, considered to be the epicenter of China's burgeoning technology market. At the same time the company acquires the research and design expertise of an organization best known for its multimedia add-in boards for personal computers.

"This transaction brings ATI two important elements - presence in a country that is emerging as the next big technology market, and a team of engineers that are highly skilled in our key product areas," said Dave Orton, president & CEO, ATI Technologies Inc. "The XGI and Macrosynergy people bring additional breadth of knowledge and experience to an ATI team that is leading the graphics processor market."

The acquisition will see approximately 100 Shanghai-based employees join ATI. An additional cadre of XGI employees in Santa Clara will relocate to ATI's Santa Clara location.

Currently, demand for computer hardware in China is setting a pace to achieve a 5% CAGR over the next five year period with spending on IT hardware hitting $20.3 billion in 2006, surpassing $23 billion in 2009(1). With the country expected to urbanize a billion people by 2010, strong markets for handhelds and digital televisions are also projected through the next decade.

Shanghai, the country's largest shipping port and hub to China's mainland transportation routes, is ideally suited for commercial opportunities.

"From a worldwide perspective, China will continue to be the dominant manufacturing base as well as a major market for both computers and mobile handsets," said Oliver Xu, principal Shanghai-based analyst with Gartner Inc.'s Semiconductor Group. "Therefore the acquisition is important for ATI's further success in China and will enhance the company's performance in the global market."

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