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Press Release

Atheros Communications Introduces First Video Chipset for Affordable HDTV- Quality Wireless

Integrated support for video/audio controllers and multiple-radio/smart-antenna technologies enable reliable, low-cost HDTV, DVR and Media Center applications

SUNNYVALE, Calif., July 20, 2004  Atheros Communications, Inc. (Nasdaq: ATHR), a leading developer of advanced wireless LAN (WLAN) chipsets, today introduced the first standards-compliant WLAN chipset optimized for high-quality multimedia applications. The AR5005VA chipset implements reliable wireless video and audio connections throughout the home -- even a Texas-sized home -- by integrating a complete set of high- performance features. These features range from on-chip interfaces to multimedia chipsets and quality of service (QoS) to multiple-radio/smart- antenna technologies such as transmit beamforming and receive combining.

"Wireless LANs are moving into many new application areas," said Craig Barratt, president and chief executive officer of Atheros Communications. "We believe that the next wave of market growth for WLAN products will be multimedia networks driving a variety of audio/visual devices around the home. Consumers will be able to enjoy seamless wireless connectivity among PCs, TVs and set-top boxes, wireless DVD players and other AV sources."

By sustaining multiple DVD-quality links (6-8 Mbps each) or a combination of HDTV (19-24 Mbps each) and DVD-quality links throughout homes of up to 6,000 square feet (550 square meters), the AR5005VA chipset provides an easy unplug-and-play experience for consumers. Since the chipset provides enhanced performance using standard 802.11a/b/g technologies and 802.11e quality of service, it also enables TVs to pull multimedia content from personal computers using standard 802.11a/b/g wireless networking. Users can view and organize PC-based photos and videos, play audio sources such as MP3, Apple AAC, and Sony ATRAC files, and play video files from Windows Media Center devices. The chipset can also eliminate the unsightly signal cables now needed to connect wall-mounted flat-screen TVs.

Integrated Video/Audio Controller Support

Addressing one of the biggest barriers to wireless audio/video acceptance, Atheros has dramatically reduced the technology's cost. Previous wireless chipsets and video/audio controllers have been popular, but the complex and proprietary nature of integrated designs has limited the availability of wireless multimedia.

The AR5005VA chipset brings wireless multimedia within the reach of virtually any consumer by providing direct support for the video/audio chipsets used in high-definition TV (HDTV), digital TV (DTV), digital video recorders (DVRs), set-top boxes (STBs), and Windows Media Center devices. This high level of integration makes it easy and economical to include wireless support in new and existing consumer electronics products. Atheros' multimedia support includes direct interfaces, as well as MPEG-Transport Stream support, host controller, and direct memory access (DMA) acceleration for chipsets from ALi/T-Square, ATI, ESS, Entropic, NEC Electronics, Sigma Designs, VWeb, Zoran, and others.

The AR5005VA even includes a universal infrared (IR) modulator and repeater capability for forwarding the consumer's IR remote-control signals to a source device such as a DVD player or set-top box. This functionality allows consumers to use standard IR remote controls with an AR5005VA-based device to control existing IR-controlled products from across the home.

Glitchless Multimedia

The AR5005VA chipset includes quality-of-service capabilities that ensure high-quality video and audio delivery while simplifying product designs. The device supports 802.11e Quality of Service and adds a number of features demanded by consumer electronics manufacturers. To provide wired-quality reliability and consistency, for example, the chipset includes hardware packet jitter control and MPEG packet aggregation.

For additional flexibility, the chipset's integrated MIPS R4000-class processor also supports many of the Digital Living Networking Alliance (DLNA) guidelines, including MPEG encapsulation into other protocols and encryption for digital rights management (DRM) technology. With these capabilities, system designers can treat the wireless interface as a link that is as simple and secure as a wired connection.

Standard wireless networking with a kick

Because the AR5005VA chipset uses standard WLAN protocols, it implements networks that interact and coexist seamlessly with other standard 802.11a, b or g wireless devices, as well as Atheros Super G® and Super AG® devices. Super G and Super AG® products implement innovative performance- enhancement features that can triple the available throughput of 802.11g or 11a/g networks.

The AR5005VA also introduces multiple-radio/smart-antenna capabilities, including transmit beamforming and multiple receive combining, with support for up to four antennas. The chipset integrates dual orthogonal frequency division multiplexing (OFDM) baseband processors and radio devices to focus radio frequency (RF) energy toward the intended receiver -- a unique feature for a WLAN device. The receiver uses up to four antennas for receive combining to extend range and improve robustness. This technique takes advantage of the significant difference in radio signals available to multiple antennas and uses advanced signal processing to combine the signals and thus improve overall signal strength and quality.

Products using the AR5005VA chipset's transmit beamforming and receive combining allow consumers to use the wireless interface just as they would a wired connection. The combined technologies increase the effective signal by up to ten-fold or approximately 10dB. These capabilities are fully compatible with legacy WLAN devices and provide a performance benefit even with AR5005VA products at only one end of the link.

The AR5005VA is the first of a family of products to feature Atheros' VLocity(TM) technology. VLocity is a family of ultra-high performance wireless technologies, which encompasses multiple-radio/smart-antenna, multiple- input/multiple-output (MIMO), and other anticipated 802.11n technologies.

Price and availability

The AR5005VA chipset is available in both two- and four-antenna configurations. The four-antenna configuration costs under $20 in 10,000-unit quantities. This chipset is now shipping in sample quantities, with volume production expected to begin in Fall 2004. Prototype products based on the AR5005VA are being demonstrated at the WIRELESS JAPAN 2004 show in Tokyo from July 21-23.

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, 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 and benefits of Atheros' AR5005VA chipset, and the timing of development, production and shipment of the AR5005VA chipset for use in multimedia applications, 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 its products and ship in volume, and other risks detailed in Atheros' Quarterly Report on Form 10-Q for the quarter ended March 31, 2004, filed with the SEC, and in other SEC filings made 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.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Atheros Communications's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.


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.