ATYT Ati Technologies

RADNOR, Pa., Aug. 23 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP: Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Eastern District of Pennsylvania on behalf of all securities purchasers of ATI Technologies, Inc. (NASDAQ:ATYT) ("ATI" or the "Company") between October 7, 2004 and June 23, 2005, inclusive (the "Class Period"). If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll-free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at . The complaint charges ATI, Kwok Yuen Ho, David E. Orton and Patrick G. Crowley with violations of the Securities Exchange Act of 1934. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company substantially relied on its high-end offerings to fund other parts of its business; (2) that the Company's high-end offerings failed to offset the negative impact of weak gross margins and declining average sales prices in consumer electronics; (3) that the Company, due to production and design issues, was late to the market with its R520 chip, thereby losing market share to both Nvidia Corp. and Intel Corp. which caused downward pricing pressure for ATI; (4) that the Company's inventory levels were at a historic high, while current sales levels were insufficient to support the existing cost base; and (5) that the defendants' positive statements about the Company's progress and future growth lacked in all reasonable basis. On June 6, 2005, ATI announced that it expected its revenue for the third quarter 2005 to be well below previously forecasted results. On this news, shares of ATI fell $1.58 per share, or 10.35 percent, on June 6, 2005, to close at $13.68 per share. On June 23, 2005, ATI issued its results for the third quarter 2005 and again lowered its forecast. On this news, shares of ATI fell $0.98 per share, or 7.67 percent, on June 23, 2005, to close at $11.80 per share. Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com/. If you are a member of the class described above, you may, not later than October 17, 2005, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Schiffrin & Barroway, or other counsel of your choice, to serve as your counsel in this action. CONTACT: Schiffrin & Barroway, LLP Darren J. Check, Esq. Richard A. Maniskas, Esq. 280 King of Prussia Road Radnor, PA 19087 1-888-299-7706 (toll-free) or 1-610-667-7706 Or by e-mail at DATASOURCE: Schiffrin & Barroway, LLP CONTACT: Schiffrin & Barroway, LLP: Darren J. Check, Esq. or Richard A. Maniskas, Esq., +1-888-299-7706, +1-610-667-7706, or Web site: http://www.sbclasslaw.com/

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