Atheros Introduces Highly Optimized Platform for Next-Generation Wireless IP Phones

World’s Most Integrated, Cost-Effective Single-Chip WLAN Handset Designs Bring Voice-Over-Wi-Fi to the Mainstream

SANTA CLARA, Calif., July 17, 2006—Atheros Communications Inc. (NASDAQ: ATHR), a leading developer of advanced wireless solutions, today introduced the world’s most integrated, highly optimized, wireless Internet Protocol (IP) platform. This innovative new AR6101 platform from Atheros’ Radio-on-Chip for Mobile (ROCm®) family of embedded solutions implements the most cost-effective and compact Wi-Fi phones on the market. From the silicon solution to the application software, Atheros is enabling a complete VoIP handset design that delivers a truly mobile IP experience.

The Atheros AR6101G for 802.11g and the AR6101X for 802.11a/g single-chip solutions are the first designs offered in this family. With this latest platform, Atheros is building on its history of innovation and success in developing custom-built, low-cost mobile communications solutions much as it achieved with its market-proven PAS/PHS design, the Atheros AR1900. The company is again integrating multiple complex functions onto a single chip: computing, DSP, memory, power management, keypad, audio and display interfaces, in addition to mixed-signal and RF.

Additionally, this new ROCm wireless IP platform offers a complete solution, including the user interface, in an energy- and memory-efficient package. With the highest level of systems integration, the AR6101 total component count is reduced by approximately 50 percent versus competitive designs, dramatically lowering the total bill-of-materials.

Atheros’ wireless IP platform initially offers a streamlined voice capability. With this first implementation, consumers will be empowered to make free or low-cost calls using any available WLAN. The scalable AR6101 platform supports Session Initiation Protocol (SIP) and Extensible Messaging and Presence Protocol (XMPP) for Internet conferencing, telephony, presence and events notification, and instant messaging. XMPP is an open-source, XML-based protocol that has become the industry standard for leading instant messaging platforms and presence technology used by millions of people worldwide.

Across the ROCm product line, Atheros brings ultra-efficient chip and software implementation to the broadband wireless IP connection, enabling customer designs to deliver the full richness of the Internet in a highly attractive form factor. These designs will result in new Wi-Fi-enabled phones that allow users to un-tether from their office networks or home broadband connections, and use the phones on any open WLAN. Fulfilling the IP promise, each handset is an actual node on the Internet with its own unique Web address.

“Wireless Internet Protocol has become ubiquitous through the rapid growth of wireless networking infrastructure that goes well beyond the home into metro Wi-Fi, enterprise, campus, and hotspot deployments worldwide,” said Craig Barratt, president and chief executive officer of Atheros. “With Atheros’ new ROCm wireless IP platform, we’re bringing rich, IP-based applications including voice and messaging that are now accessed from the desktop into the palm of your hand.”

The Atheros AR6101 features a low-power RISC (MIPS) CPU core, full 802.11a/b/g functionality, and the integration of all major handset functions. Atheros also delivers a full suite of handset software applications and a complete application development environment. In addition, the AR6101 supports advanced features such as Quality of Service (802.11e and WMM), energy savings (WMM-APSD), and ease-of-use (with the forthcoming Wi-Fi Alliance configuration standard).

Atheros AR6101 Availability

Atheros will demonstrate its highly integrated, cost-effective Wi-Fi handset designs at the upcoming Wireless Japan conference in Tokyo, July 19-21. See booth #B-401. Atheros is currently sampling the AR6101.

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

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Atheros, the Atheros logo and ROCm are trademarks of Atheros Communications, Inc. All other trademarks mentioned in this document are the sole property of their respective owners.

NOTE ON FORWARD-LOOKING STATEMENTS:

Except for the historical information contained herein, the matters set forth in this press release, including statements regarding the features, benefits and capabilities of the Atheros AR6101 platform, 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 risks detailed in Atheros’ Annual Report on Form 10-K for the year ended December 31, 2005 and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2006, 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.