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Press Release

Atheros Communications Ships More Than 50 Million Wireless Chipsets

Enhanced Performance and High Level of Integration Fuels Atheros’ Success in Multiple Markets

SANTA CLARA, Calif., Feb. 27, 2006 —Atheros Communications, Inc. (NASDAQ: ATHR), a leading developer of advanced wireless solutions, today announced that as of January 2006, it had shipped more than 50 million wireless chipsets, further solidifying its position as the wireless market’s leader in performance and integration. In the fourth quarter of 2005, Atheros shipped the equivalent of one chipset every second.

A significant portion of Atheros’ 2005 shipments consisted of its industry leading Super G®, Super AG®, and Atheros XR® (eXtended Range) performance technologies, which provide enhanced throughput and range. Additionally, products based on Atheros’ VLocity™ MIMO and Super G high-performance wireless technologies achieved a majority of the U.S. retail MIMO market share in the second half of 2005.[1]

“Atheros’ success stems from its dedication to providing customers with the industry’s highest-performing, most highly-integrated solutions,” said Craig Barratt, president and chief executive officer of Atheros Communications. “Shipping our 50-millionth chipset demonstrates our customers’ success in leveraging our technology’s strengths to satisfy growing consumer demand.”

Since its inception in 1998, Atheros has pioneered six generations of WLAN chipsets, many of which were industry firsts. The company introduced the world’s first single-chip 802.11g and 802.11a/g solutions for client devices; single-chip 802.11g solution for access points; single-chip solutions for PAS (Personal Access System); and single-chip 802.11a/g and 802.11g Wi-Fi solutions for mobile and embedded devices. The high level of chip integration enables Atheros’ customers to build cost-effective, small-form-factor products.

Atheros has also singularly driven the development of dual-mode, single-chip 802.11a/g solutions, which operate in the 2.4 GHz and 5 GHz bands. Devices operating in the 5 GHz band, which offers up to 24 non-overlapping channels, provide the benefit of interference-free operation. A key requirement of the 802.11n draft specification is the support of multiple devices on a given network, operating various high-bandwidth applications simultaneously. For this reason, the 5 GHz band is a key element of the specification.

“Atheros’ position of leadership in the WLAN industry was earned the old-fashioned way – by delivering outstanding components that form the basis of great end-user products,” said Craig Mathias, a principal at the wireless and mobile advisory firm Farpoint Group, located in Ashland, Mass. “It has been really exciting to watch Atheros’ progress from the very early days of the first 5 GHz, CMOS radio to its industry-leading innovations of today.”

Atheros is now applying its innovative edge and core competencies of enhanced performance and market-leading integration to establish itself as a leader in emerging WLAN and non-WLAN markets. These include the next-generation, high-performance Wi-Fi, mobile and embedded, and PAS markets, among others. With the company’s continued leadership in these markets, consumers can enjoy the benefits of Atheros-driven performance anytime, anywhere.

About Atheros Communications, Inc.

Atheros Communications is a leading developer of semiconductor system solutions for wireless communications products. Atheros combines its wireless systems expertise with high-performance radio frequency (RF), mixed signal and digital semiconductor design skills to provide highly integrated chipsets that are manufacturable on low-cost, standard complementary metal-oxide semiconductor (CMOS) processes. Atheros technology is being used by a broad base of leading customers, including personal computer, networking equipment and handset manufacturers. For more information, visit www.atheros.com or send email to info@atheros.com.

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Atheros, the Atheros logo, Super G, Super AG, Atheros XR, VLocity are trademarks of Atheros Communications, Inc. All other trademarks mentioned in this document are the sole property of their respective owners.

FORWARD-LOOKING STATEMENT:

Except for the historical information contained herein, the matters set forth in this press release, including statements regarding Atheros’ anticipated growth and its plans to establish and extend Atheros’ leadership in emerging WLAN and non-WLAN markets, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, including, but not limited to, Atheros’ ability to execute its growth strategy; the effects of competition in the WLAN and other wireless markets; general economic conditions; and other risks detailed in Atheros’ Quarterly Report on Form 10-Q for the quarter ended September 30, 2005 as filed with the Securities and Exchange Commission and in other reports filed with the SEC by Atheros from time to time. These forward-looking statements speak only as of the date hereof. Atheros disclaims any obligation to update these forward-looking statements.

Although we believe that the statistical information obtained from NPD Techworld Market Data Weekly Report is reliable, we have not independently verified this data.  NPD generally indicates that it has obtained its information from sources believed to be reliable, but does not guarantee the accuracy and completeness of the information.

 

[1] NPD Techworld Market Data Weekly Report, Unit Sales, September 2005

 


For Atheros press contact: Susan Lansing, 408-773-5216, susan@atheros.com, or Greg Wood, A&R Partners, 650-762-2838, gwood@arpartners.com

For analyst inquires contact: Deborah Stapleton of Stapleton Communications, Inc.,
+1-650-470-0200, for Atheros