Atheros ETHOS Technology Portfolio Expands with New Gigabit Ethernet Solutions

Atheros’ New Gigabit Ethernet Controller and 6-Port Gigabit Switch Leverage Atheros Design to Enhance Performance and Value

SANTA CLARA, Calif., Nov. 8, 2007 — Atheros Communications, Inc. (NASDAQ: ATHR), a leading developer of advanced wireless solutions, today announced two new designs which extend the company’s Gigabit Ethernet (GbE) portfolio – its second-generation GbE Controller, the AR8121, and its first 6-port GbE Switch, the AR8316. These are the newest members of the Atheros ETHOS™ portfolio which provides the company’s PC, retail networking and carrier equipment customers with Atheros-designed Ethernet solutions. ETHOS brand technologies leverage Atheros’ mixed-signal and analog design expertise honed in its industry-leading WLAN portfolio to deliver superior performance and value in the Ethernet market.   

PC, retail networking and gateway markets are rapidly adopting GbE technology, driven by the growing appetite of consumers and enterprises for bandwidth, and the increasing popularity of triple-play applications – combined data, voice, and video operating on a home network. The performance benefits of GbE are so clear that it is quickly becoming the de facto standard in networking systems and PC platforms.

“With the addition of the AR8121 and AR8316 Gigabit solutions to our rapidly expanding ETHOS portfolio, we continue to demonstrate our commitment and focus to bring Atheros’ engineering assets to the Ethernet industry, said Jason Zheng, vice president, Asia Pacific for Atheros. “Our new GbE Controller and Switch solutions set new benchmarks in footprint, power consumption and price.”

Introducing the World’s Most Integrated Gigabit Controller for Consumer PCs

The Atheros AR8121 is the industry’s smallest, most highly integrated PCI Express Gigabit Controller designed to meet the size, performance and cost requirements of the consumer laptop and desktop PC market. Atheros’ second-generation GbE controller is available in an ultra-compact 48-pin QFN package, measuring only 36mm². In comparison, the nearest competitive solution is more than twice the size. The highly integrated AR8121 has the industry’s lowest external component count. Despite its compact size and high integration, the AR8121 delivers industry-leading GbE performance and power savings.

The AR8121 achieves substantial power savings through efficiencies derived from its miniature size combined with several advanced modes to enhance its industry-leading low power consumption. For example, a laptop consumes less than 700mW in GbE operation. The AR8121 features a deep sleep mode which consumes only 20mW when the network cable is disconnected, saving battery power in laptops. The power savings offered by the AR8121 enables PC OEMs and ODMs to meet and exceed the Environmental Protection Agency's (EPA) Energy Star 4.0 specification, among the industry’s most stringent power requirements.    

Driving the Gigabit Ethernet Transition in Retail and SMB Markets

The home and SMB networking markets are also quickly making the switch to GbE technology, particularly to support the performance of the growing number of 802.11n products. With the highly cost-effective AR8316 GbE Switch, Atheros is facilitating its customers’ transition to Gigabit Ethernet-enabled wireless routers, access points and gateways.

The Atheros AR8316 is the industry’s smallest 6-port Gigabit Ethernet Switch available in a cost-effective 176-pin LQFP package, which significantly lowers the cost of the switch. This design sets a new value standard in GbE technology for home networking and SMB equipment manufacturers. Now Atheros’ is providing its world-class customer base with a complete, end-to-end networking solution including the Wi-Fi, wireless network processor (WNPU) and GbE or Fast Ethernet switches – for router and gateway products. Customers gain the benefits of exceptional integration, performance and value, all from a single, trusted source.

The AR8316 delivers power advantages over existing GbE switching platform solutions. Its integrated PHYs consume less than 3W, enabling the AR8316 to utilize a lower-cost LQFP package instead of a more costly BGA package used by most competing solutions. The design also features advanced power-saving mechanisms which dynamically adjust power based on port usage. This proprietary feature results in additional power savings, and reduces the solution’s thermal requirement.  

The AR8316 features five integrated GbE PHYs. The AR8316, like its predecessor, the AR8216 Fast Ethernet switch, supports an advanced QoS architecture which 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. The AR8316 also supports carrier-class features such as ingress/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 multiple users or groups on the network.

Product Availability

The AR8121 GbE Controller and AR8316 6-port GbE Switch are currently sampling and will be in volume production in the first quarter of 2008.

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 www.atheros.com or send email to info@atheros.com.

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Atheros, the Atheros logo and ETHOS 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 performance of Atheros’ AR8121 GbE Controller and AR8316 6-port GbE Switch and the expected timing of volume production of these 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 the development and production of new and enhanced products, and the risks detailed in Atheros' Annual Report on Form 10-K for the year ended December 31, 2006 and its Quarterly Report on Form 10-Q for the quarter ended September 30, 2007, 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.