Atheros Communications Introduces Industry’s First Single-Chip PCI Express™ Compliant Wireless LAN Solutions 

High-Performance 802.11a/g and 802.11g WLAN Technology in a Compact Form Factor Unwires Next-Generation Notebook PCs

SUNNYVALE, Calif., April 25, 2005 – Atheros Communications, Inc. (NASDAQ: ATHR), a leading developer of advanced wireless LAN (WLAN) chipsets, today announced the world’s first complete single-chip IEEE 802.11a/g (Atheros AR5006EX) and 802.11g (Atheros AR5006EG) WLAN solutions with support for PCI Express™. The chips integrate an entire WLAN solution—media access controller (MAC), baseband processor, and a high-performance 2.4/5-GHz radio or 2.4-GHz radio—in a low-cost digital CMOS design.

With this high level of integration, the AR5006EX and AR5006EG enable the entire WLAN solution to fit on a single-sided mini card or ExpressCard design, creating the ideal choice for aftermarket and embedded WLAN solutions for personal computers. These designs exploit the ability of the PCI Express bus architecture to support high-performance computing with up to 2.5-gigabit-per-second transmit and receive rates—a 150 percent improvement over the existing PCI architecture.

“The AR5006EX and AR5006EG, our sixth-generation wireless LAN solutions, further solidify Atheros’ position as a market leader in high-performance, low-cost wireless semiconductors,” said Craig Barratt, president and chief executive officer of Atheros Communications. “We’re proud to enable next-generation wireless multimedia applications in ultra-compact notebook PCs by integrating PCI Express’ compact design and high-speed performance with our advanced wireless LAN technology. Our PCI Express chips have been sampling with customers since early Q1, and key PC OEMs have already committed to using these innovative Atheros designs in their next-generation laptops.”

The AR5006EX offers seamless connectivity to all Wi-Fi networks anywhere in the world and support for Atheros XR™ (eXtended Range) and Super AG® performance enhancements. The AR5006EG offers 802.11g connectivity with the same performance enhancement capabilities as the AR5006EX.

Additionally, both chips support the industry’s most robust security standard, IEEE 802.11i. An AES encryption engine is built into the hardware of all Atheros 802.11a/g and 802.11g chipsets, allowing real-time encryption with no performance degradation in computing, consumer electronics and wireless broadband applications. Atheros’ chipsets also support wireless multimedia and draft 802.11e Quality of Service (QoS) specifications, providing advanced features for delivering wired-quality video and audio content via a wireless connection.

The AR5006EX and AR5006EG are among many firsts for Atheros. The company introduced the world’s first single-chip 802.11g and 802.11a/g solutions for client devices, as well as a single-chip 802.11g Access Point (AP) device in 2004. This year, Atheros also introduced the world’s first single-chip solution for PHS (Personal Handyphone System).

Super AG® technology

Atheros’ popular Super AG performance-enhancement features are supported in the new single-chip AR5006EX and AR5006EG. Super AG employs multiple techniques—including Dynamic Turbo with Adaptive Radio technology, packet bursting, fast frames, and data compression—to dramatically increase the throughput and range of wireless networking products. The technology supports up to 108 megabits-per-second (Mbps) link rates, and enables user throughput of more than 60 Mbps. 

eXtended Range technology

The AR5006EX and AR5006EG chips also support Atheros’ eXtended Range technology, XR, which enables single-access-point coverage in home networking environments, eliminates “dead spots” in corporate wireless LANs, and provides outdoor coverage of up to two times the distance of competing WLAN solutions.

Atheros AR5006EX and AR5006EG availability

Atheros is currently sampling the AR5006EX and AR5006EG to lead customers. Volume production is expected in Q3 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, Atheros XR, and Super AG 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 statements regarding the features, performance and benefits of Atheros’ AR5006EX and AR5006EG single-chip solutions and the potential applications of these products, and the expected timing of volume production of the AR5006EX and AR5006EG products, 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, difficulties in development and manufacture of new products and upgraded products, unforeseen problems in the performance of the AR5006EX and AR5006EG chips upon volume production and broad deployment of these products, and other risks detailed in Atheros’ Annual Report on Form 10-K for the year ended December 31, 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 contact: Cheryl Patstone, 408-773-5344, cheryl@atheros.com, or Greg Wood, A&R Partners, 650-762-2838, gwood@arpartners.com,

For analyst contact: Deborah Stapleton, Investor Relations for Atheros, 650-470-0200, deb@stapleton.com