Atheros Launches First Ethernet Switch Solution

Ethernet Switch Enables Atheros to Deliver Complete Wireless Routing Solutions to World Class Networking Customer Base

SANTA CLARA, Calif., April 30, 2007 — Atheros Communications, Inc. (NASDAQ: ATHR), a leading developer of advanced wireless solutions, today launched the AR8216 – the company’s first Ethernet switch product and the industry’s lowest-cost, 6-port 10/100 Fast Ethernet switch. The AR8216 supports a wide array of wired and wireless networking applications and also targets mainstream 802.11n and 802.11g wireless router and gateway platforms. With the launch of its own high-performance, low-cost Fast Ethernet switch solution, Atheros now provides networking customers with all of the major silicon required for complete wire-to-wireless router solutions. These single-source, end-to-end networking designs feature Atheros’ market-leading wireless LAN (WLAN), the industry’s only network processors designed expressly for Wi-Fi and the company’s new Fast Ethernet switch.

Fast Ethernet

Ethernet technology – the proven wired backbone for home and office networks – has the largest installed base for delivering multimedia throughout the home and for connecting wireless access points and PCs. Fast Ethernet switches dominate the Ethernet segment, particularly in the mid-to-low-tier networking markets. While adoption of Gigabit Ethernet will expand in high-end, 802.11n-based solutions requiring the highest bandwidths for multimedia applications, Fast Ethernet readily serves mainstream networking applications in cost-sensitive 802.11n and 802.11g products.

According to Seamus Crehan, senior director of Ethernet Switch Research at Dell'Oro Group, “While we expect to see very strong growth in Gigabit Ethernet over the next few years, Fast Ethernet is still the majority segment in the market with nearly 165 million ports shipped in 2006.

In the near-term, mid-to-low tier networking products for 802.11n and 802.11g are expected to account for the greatest unit volume in the WLAN retail and gateway markets. Mid-priced 802.11n products will drive adoption of the newest WLAN technology, while demand for legacy 802.11g – given its competitive pricing and broad market penetration – will continue to serve the low-end Wi-Fi market.

“The AR8216 delivers on Atheros’ commitment to provide complete, low-cost, high-performance wireless router and gateway solutions to ensure rapid acceptance of the new 802.11n technology,” said Tony Hsu, director of product marketing for Atheros. “In addition to the AR8216, we will offer a complete portfolio of Ethernet switching solutions to satisfy not only this immediate, price-sensitive market, but also support the highest-performance 802.11n products requiring Gigabit Ethernet throughput.”

The AR8216 Offers Leading Size, Performance and Features

The AR8216 provides the industry’s most cost-effective and power-efficient Fast Ethernet connectivity for SOHO and SMB, wired and wireless networks. The AR8216 offers design flexibility with its 6-port configuration consisting of five 10/100 Ethernet PHY ports, one MII port for CPU connectivity and six independent Media Access Controllers (MACs).

• Integration: The AR8216 offers the industry’s smallest footprint through a significantly reduced number of system components in a 10mm x 10mm, 80-pin, low-profile quad flat package. As a result, the AR8216 is only one-third the size of competing solutions and delivers the industry’s lowest RBOM, maximum design flexibility and increased cost savings.
   

• Advanced Quality of Service (QoS): To provide non-blocking switching performance in all traffic environments, the AR8216 supports an advanced QoS architecture. This unique Atheros-designed architecture prioritizes switch traffic for different classes of applications, such as voice traffic for IP phones, video traffic for multimedia and data traffic for e-mail.
   

• Carrier-Class Features: Meeting today’s stringent service provider requirements, the AR8216 supports ingress policing and egress rate limiting, as well as IPv4 IGMP and IPv6 MLD snooping to significantly improve the performance of streaming media and other bandwidth-intensive IP multicast applications. In addition, virtual LANs are supported for separation of different users or groups on the network.

Product Availability

The AR8216 is currently sampling to key customers. For more information, please visit: http://www.atheros.com/pt/ethernet_index.htm.

About Atheros Communications, Inc.

Atheros Communications is a leading developer of semiconductor system solutions for wireless and other network communications products. Atheros combines its wireless and networking systems expertise with high-performance radio frequency (RF), mixed signal and digital semiconductor design skills to provide highly integrated chipsets that are manufactured on low-cost, standard complementary metal-oxide semiconductor (CMOS) processes. Atheros technology is used by a broad base of leading customers, including personal computer, networking equipment and consumer device manufacturers. For more information, please visit http://www.atheros.com or send email to info@atheros.com.  

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NOTE:  Atheros and the Atheros logo are trademarks of Atheros Communications, Inc.

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, performance, competitiveness and benefits of the AR8216 solution, projected Fast Ethernet volumes or revenues and Fast Ethernet semiconductor shipments, and the anticipated adoption of Gigabit Ethernet, 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 new and enhanced products upon broad deployment; general economic conditions, the effects of competition and technological change, and other risks detailed in Atheros' Annual Report on Form 10-K for the year ended December 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.

Although we believe that the forward-looking statistical information from the Dell’Oro Group is reliable, we have not independently verified this data. Dell’Oro 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.