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Press Release

Atheros Introduces First USB 2.0 WLAN Chips with Super G® and Super AG® Technology

Fully Integrated USB 2.0 Interface Connects Desktop PCs, Notebook PCs, and a Wide Range of Consumer Electronics Devices to High-Performance Wireless Networks

SUNNYVALE, Calif., May 3, 2004—Atheros Communications (Nasdaq: ATHR), a leading developer of advanced wireless LAN (WLAN) chipsets, today introduced the Atheros AR5005UG and AR5005UX, featuring a completely integrated universal serial bus (USB) 2.0 interface. Using these new chipsets, WLAN equipment manufacturers can deliver high-performance 802.11g and 802.11a/g wireless connectivity with Atheros’ Super G and Super AG® adaptive bandwidth technology to any device with a USB port. 

In addition to connecting desktop and laptop PCs, USB 2.0 support enables a new class of wirelessly connected products. This new WLAN application class includes digital video recorders (DVRs), high-quality video conferencing cameras, high-resolution scanners, and high-density storage devices. Any device that has a USB 2.0 port can now access a high-performance 802.11g or 802.11a/g wireless network using an Atheros-based wireless USB product.

Atheros is also introducing industry-leading small-form-factor reference designs based on the AR5005UG and AR5005UX. These designs measure only 2.57 inches by 0.96 inches and substantially reduce the number of discrete components required for implementation.

 “Atheros is committed to introducing new products that enhance the wireless user experience,” said Colin Macnab, vice president of marketing and business development for Atheros. “By making wireless an easy upgrade option to any device through a USB port, we’re enabling our customers to offer high-performance wireless capabilities in a wider array of their products.”

Like Atheros’ existing WLAN solutions, the AR5005UG and AR5005UX support the latest WLAN security standards in hardware, without performance reduction. These hardware-supported standards include Wi-Fi Protected Access (WPA ) and 802.11i Enhanced Security using Advanced Encryption Standard (AES). In contrast, competing wireless LAN products with firmware encryption can suffer a 20-50 percent performance reduction when WPA or AES is enabled. The AR5005UG and AR5005UX also support Cisco Compatible Extensions (CCX).

To facilitate the convergence of voice, video, and data communications on wireless networks, the AR5005UG and AR5005UX support the Wireless Media Extensions (WME) Quality of Service (QoS) capabilities defined in the IEEE 802.11e draft standard. For even greater performance, these chips feature Atheros’ Super G and Super AG® technology, utilizing adaptive bandwidth technology to deliver over 60 Mbps of performance-on-demand throughput based on channel availability. The chips also support Atheros eXtended Range (XR) operation, which enables connections at greater distances from the access point where signals are otherwise too weak to connect.

Atheros AR5005UG and AR5005UX availability

Atheros is currently sampling the AR5005UG and AR5005UX to its customers. Products based on the AR5005UG and AR5005UX are expected to begin shipping in the third quarter.

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, 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 and networking equipment manufacturers. For more information, visit www.atheros.com/ or send email to info@atheros.com.

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Atheros, the Atheros logo, Atheros eXtended Range, Super G and Super AG® are trademarks of Atheros Communications, Inc.  All other trademarks mentioned in this document are the property of their respective owners.

FORWARD-LOOKING STATEMENTS:

Except for the historical information contained herein, the matters set forth in this press release, including the features, performance, capabilities and benefits of Atheros’ AR5005UG and AR5005UX chipsets, and the expected availability, production and shipping time of these chipsets and the products incorporating these chipsets, 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, the impact of competitive products and technological advances, manufacturing difficulties, difficulties in development of enhanced and new products, Atheros’ ability to market the AR5005UG and AR5005UX chipsets and ship in volume, and other risks detailed in Atheros’ Prospectus dated February 11, 2004 as filed with the SEC and from time to time in Atheros’ SEC filings. These forward-looking statements speak only as of the date hereof. Atheros disclaims any obligation to update these forward-looking statements.

For press and analyst inquiries contact: Cheryl Patstone, 408-773-5344, cheryl@atheros.com or Greg Wood, A&R Partners, 650-762-2838, gwood@arpartners.com.