ATI Selects MIPS Technologies for Next-Generation DTV and PC Multimedia SoCs

MOUNTAIN VIEW, Calif., - September 18, 2006 - MIPS Technologies, Inc. (NASDAQ: MIPS), a leading provider of industry-standard processor architectures and cores for digital consumer, networking, personal entertainment, communications and business applications, today announced that ATI Technologies Inc. has licensed the MIPS32® 4KEc® and 24K® processor cores to power its next-generation multimedia SoCs for both DTV and PC products. Earlier this month, ATI announced the availability of the Xilleon 260, the industry's first MPEG and video processing SoC to support full high definition (1080P) video worldwide, and the first ATI SoC to be based on the high-performance 24K processor core.

"The MIPS architecture is an important part of ATI's digital video solutions and the design community continues to benefit from our long-standing relationship," said Adrian Hartog, ATI's chief technology officer, senior vice president and general manager, Consumer Business Unit. "With a broad range of OS, tools and middleware supporting our key markets, the MIPS Ecosystem provides our customers with cost-efficiencies and rapid time-to-market so critical to their success."

ATI Technologies is a leading supplier of video, multimedia and graphics products for digital televisions, personal computers, mobile phones and game consoles. For desktop and workstation customers, ATI's Radeon® graphics processors give customers the ultimate visual experience. ATI has been a MIPS Technologies customer since 1999 - licensing a variety of 32-bit processor cores for video, multimedia and graphics applications.

"Over the years, we've worked in close collaboration with ATI and are proud that MIPS-Based designs are at the heart of their continued success as the global leader in graphics and multimedia solutions," said Brad Holtzinger, vice president of worldwide sales at MIPS Technologies. "We look forward to combining our expertise to expand and drive our global presence in both the DTV and personal computing markets."

About the MIPS32 4KE™ and 24K Core Families

The synthesizable 4KEc core, a member of the 4KE™ core family, gives licensees the flexibility to optimize applications for performance, size or power consumption, thereby reducing overall system costs. The 24K core family offers performance advantages of 660 MHz in a 90 nanometer G process, while minimizing design time and reducing product costs.

About MIPS Technologies

MIPS Technologies, Inc. is a leading provider of industry-standard processor architectures and cores for digital consumer and business applications. The company drives the broadest architectural alliance that is delivering 32- and 64-bit embedded RISC solutions. The company licenses its intellectual property to semiconductor companies, ASIC developers and system OEMs. MIPS Technologies and its licensees offer the widest range of robust, scalable processors in standard, custom, semi-custom and application-specific products. The company is based in Mountain View, Calif., and can be reached at +1 (650) 567-5000 or http://www.mips.com.

About ATI Technologies

ATI Technologies Inc. is a world leader in the design and manufacture of innovative 3D graphics, PC platform technologies and digital media silicon solutions. An industry pioneer since 1985, ATI is the world's foremost graphics processor unit (GPU) 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 device markets. With fiscal 2005 revenues of US $2.22 billion, ATI has more than 3,700 employees in the Americas, Europe and Asia. ATI common shares trade on NASDAQ (ATYT) and the Toronto Stock Exchange (ATY).