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Press Release

Atheros Communications Launches Smart-Antenna Wireless Chipset Delivering MIMO Performance to Standard 802.11 Products

Phased Array Beamforming, Cyclic Delay Diversity, and Optimal Receive Combining Technologies Increase User Throughput and Range With Maximum Compatibility

2005 INTERNATIONAL CES, LAS VEGAS, Jan. 6, 2005—Atheros Communications, Inc. (NASDAQ: ATHR), a leading developer of advanced wireless LAN (WLAN) chipsets, today introduced the new AR5005VL wireless solution that employs multiple-radio, smart-antenna technologies to deliver MIMO (multiple-input, multiple-output) performance and industry-leading throughput to standard 802.11 WLAN products. The AR5005VL chipset uses phased array beamforming, cyclic delay diversity, and optimal receive combining to deliver higher performance even when the new chipset is only on one end of a wireless connection. The new chipset therefore enables breakthrough performance with maximum compatibility for the millions of Wi-Fi products in the market.

Based on Atheros’ VLocity™ High-Performance Wireless Technologies, the new solution is unique in its ability to boost performance when on both ends of a wireless link (multiple input and multiple output), on the transmit side only (multiple output), or on the receive side only (multiple input).  As a result, home routers, enterprise access points, or public hot spots that use VLocity deliver higher performance with a wide array of non-MIMO wireless LAN devices, including end users’ existing network interface cards, laptops with embedded wireless LAN, and digital media adapters.

The AR5005VL chipset is available in both 802.11g and 802.11a/g versions, supporting configurations with up to four antennas. These chipsets deliver up to 50 Mbps of actual user throughput when operating on both sides of the wireless connection. In mixed networks with a wide range of different 802.11g products, the Atheros technology delivers up to 27 Mbps of user throughput across a 3000-square-foot home even when on just one side of the link.

In contrast, other MIMO products deliver less than 18 Mbps of user throughput when communicating with non-MIMO devices and fall back to a diversity-only mode that only uses just one antenna at a time. Even when these competing products are on both sides of the link, they achieve only 40 Mbps of actual throughput. The Atheros solution thus delivers significantly better throughput in any configuration, with dramatically improved throughput when on just one end of the link.

“Sophisticated users demand that their access points provide 100 percent coverage as well as high bandwidth to each user in the wireless network,” said Craig Barratt, president and chief executive officer of Atheros Communications. “Smart-antenna technologies improve wireless networking by combining the power of multiple radios with the latest generation of signal processing capabilities. Users need this technology to work transparently with the wide range of products out there, from gaming adapters to PDAs and the latest laptops. That’s where the VLocity technology comes in with MIMO performance and maximum compatibility.”

The AR5005VL chipset supports up to four antennas to extend range and improve network performance. Rather than rely on a proprietary pre-802.11n (pre-n) transmission method, the chipset uses multiple radio outputs to focus a coherent 802.11a/g signal towards the receiver—combining the techniques of phased array beamforming and cyclic delay diversity—in a way that is fully compatible with existing WLAN radios. The chipset also uses advanced signal processing techniques to combine multiple 802.11a/g radio inputs so as to improve overall signal strength and quality. This approach increases performance in any deployment scenario, maximizing compatibility with both MIMO and non-MIMO devices.

Price and availability

The 802.11a/g version of the AR5005VL chipset costs under $23 in 10,000-unit quantities. The 802.11g version costs under $20. The chipsets are in volume production now. End-user products based on the AR5005VL are being demonstrated at the Consumer Electronics Show (CES) in Las Vegas from January 6-9, 2005.

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 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, and VLocity are trademarks of Atheros Communications, Inc. All other trademarks mentioned in this document are the sole 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’ AR5005VL chipset, and the timing of development, production and shipment of the AR5005VL 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 September 30, 2004 as filed with the SEC 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.


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.