Atheros Communications Launches World’s Most Integrated Single-Chip 802.11g Access Point Solution

Cost-Efficient WLAN Technology Increases Accessibility of Home/SOHO Wireless Networking

SANTA CLARA, Calif., Nov. 14, 2005 – Atheros Communications, Inc. (NASDAQ: ATHR), a leading developer of advanced wireless solutions, today announced the most integrated single-chip wireless LAN (WLAN) solution for access point and router products. The Atheros AR5007AP-G, a design breakthrough in WLAN, features a complete 802.11b/g wireless access point system on a chip. This compact and cost-effective solution combines the wireless network processor, media access controller (MAC), baseband, and all radio functions up to the antenna in a single silicon chip.

With the AR5007AP-G, Atheros continues its leadership in addressing the market demand for low-cost, standard 802.11g access points and routers. The company has integrated many of the discrete components contained in its previous generation design. The new AR5007AP-G offers a total component reduction of 40 percent versus the Atheros’ AR5006AP-G access point solution, which has led the market for total bill-of-materials (BOM) integration.

802.11g devices represent 80 percent of the current WLAN market based on IDC’s latest unit forecast[1], and are expected to account for over two-thirds of the market next year. Atheros’ advanced single-chip solutions reduce the cost of implementing 802.11g Wi-Fi® in networking products for homes and small businesses, which should advance widespread adoption of personal wireless LANs.

The Atheros AR5007AP-G offers many enhanced features, such as support for IEEE 802.11i security and 802.11e quality of service (QoS) specifications. Additionally, the solution supports Atheros XR® (eXtended Range) and JumpStart for Wireless™ technologies. Atheros XR provides double the range of standard 802.11g devices to eliminate dead spots in homes and small businesses. The JumpStart technology provides easy WLAN setup and security and is compatible with emerging simple configuration solutions from major industry leaders including Intel and Microsoft.

“We expect that 802.11g products will continue to make up over half of the wireless LAN market over the next two years,” said Celeste Crystal, semiconductor research analyst at IDC. “The arrival of this advanced, highly-integrated single-chip WLAN solution to the market will enable inexpensive feature-rich wireless LAN products for the consumer and corporate market segments.”

A greatly reduced bill-of-material (BOM) is achieved while maintaining excellent product performance. Some of the key WLAN components that have been integrated onto Atheros’ newest single-chip include an on-chip power amplifier, low noise amplifiers (LNA), antenna switch and transmit/receive filtering. Additionally, the Atheros AR5007AP-G chip requires 100-150 fewer external components than competing solutions.  The high level of integration enables the use of a lower cost 2-layer printed circuit board (PCB) and eliminates the need for any external RF shielding – further reducing the AP BOM . .

“Atheros’ advances in single-chip integration significantly reduce the cost and complexity of our customers’ highest volume 802.11g access points and routers” said Todd Antes, vice president of marketing for Atheros. “We continue to innovate on the entry-level as well as the mid- and high-tiers of the wireless LAN product spectrum to enable our customers to build end products that capture both market share and mind share.”

Atheros AR5007AP-G pricing and availability

Atheros is currently in volume production with the AR5007AP-G with a list price of $12.50 in 10,000-unit quantities.

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, eXtended Range and JumpStart for Wireless 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’ AR5007AP-G single-chip solution; the anticipated future market share of 802.11g products in the WLAN market; and the expected widespread adoption of personal wireless LANs, 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 AR5007AP-G chip upon volume production and broad deployment, the effects of competition and technological developments that could affect the adoption of wireless LANs; global economic conditions; and other risks detailed in Atheros’ Quarterly Report on Form 10-Q for the quarter ended June 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 IDC and contained in the quote from IDC is reliable, we have not independently verified IDC’s data.  IDC 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.