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Press Release

Atheros Ships World’s First Single-Chip 802.11g Wireless LAN Solution in Production Volume

D-Link to Introduce New Wireless Products Based on Atheros’ Single-Chip Technology

SUNNYVALE, Calif., April 26, 2004 - Atheros Communications (Nasdaq: ATHR), a leading developer of advanced wireless LAN (WLAN) chipsets, today announced volume shipments of the world's first complete single-chip IEEE 802.11g WLAN solution, the Atheros AR5005G. D-Link, a global leader in networking and communications, plans to use the AR5005G in its line of 802.11g wireless networking products, and has awarded the first publicly announced design win for the chip.

Atheros’ innovative single-chip design, which sampled in January, brings an unprecedented level of integration, performance, power savings and cost reduction to the rapidly growing 802.11g market.  The solution is well suited for a wide range of retail, business and consumer electronics products including PC cards, access points and home gateways, small form-factor PCs, handheld data communications products, and VoIP handsets.

“We are pleased to be extending our relationship with Atheros to utilize their latest-generation 802.11g technology,” said Steven Joe, President and CEO of D-Link. “We believe Atheros’ single-chip solution will allow us to bring new high-performance 802.11g products to the market at very attractive price points.”

This low-cost digital CMOS (complementary metal-oxide semiconductor) chip integrates a Media Access Controller (MAC), a baseband processor, a high-performance 2.4-GHz radio, and many of the discrete components used in earlier 802.11g designs, resulting in a 35 percent part count reduction from products based on two-chip solutions, and a similar reduction in BOM (bill-of-materials) costs. In addition, the highly integrated design enables low-cost 802.11g products that overcome the range and throughput limitations often experienced with 802.11b and 802.11g solutions from other vendors.

According to Colin Macnab, vice president of marketing and business development at Atheros, “The AR5005G is another example of our industry leadership in RF design integration, combining analog and digital functions in standard digital CMOS. By driving performance, cost and integration to this level, we are opening new markets that aren’t well served by multiple chip solutions.”

The Atheros AR5005G features new signal processing technology that extends the battery life of mobile devices by dynamically adjusting power consumption in response to system and network activity. This technique delivers up to 98 percent lower power consumption than multi-chip WLAN solutions on the market today.

The chip also supports the latest WLAN security standards, including Wi-Fi Protected Access (WPA and WPA2) and 802.11i Enhanced Security using Advanced Encryption Standard (AES) in hardware, without performance reduction. In contrast, competing wireless LAN products with firmware encryption typically suffer a 20-50 percent performance reduction when WPA or AES are enabled. The AR5005G also supports Cisco Compatible Extensions (CCX).

To facilitate the convergence of voice and data communications on wireless networks, the AR5005G fully supports the Wireless Media Extensions (WME) Quality of Service (QoS) capabilities defined in the IEEE 802.11e draft standard.  No other product on the market combines the range, throughput, power consumption, security features, QoS capabilities and level of integration offered by the Atheros AR5005G. 

Also shipping in volume is an enhanced version, the Atheros AR5005GS, which supports robust throughput based on Atheros’ Super G® technology. This allows the development of WLAN products with among the highest throughput available today, enabling real throughput rates of over 60 Mbps in a typical home environment. The AR5005GS uses Atheros adaptive radio technology, which actively looks for clear channels and uses them to provide maximum throughput-on-demand for all users.

Additionally, the AR5005G and AR5005GS single-chip products both support eXtended Range operation, XR, which enables connections at greater distances from the access point and provides wireless connectivity to areas of the home in which signals are otherwise too weak to connect.

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

FORWARD-LOOKING STATEMENTS:

Except for the historical information contained herein, the matters set forth in this press release, including the features, performance and benefits of Atheros’ single-chip solution and 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, the impact of competitive products and technological advances, manufacturing difficulties, difficulties in development of enhanced and new products, the company’s ability to market the product and ship in volume, and other risks detailed in Atheros’ Prospectus dated February 11, 2004 as filed with the SEC and from time to time in Atheros’ SEC filings. These forward-looking statements speak only as of the date hereof. Atheros disclaims any obligation to update these forward-looking statements.

For press and analyst inquiries contact: Cheryl Patstone, 408-773-5344, cheryl@atheros.com or Greg Wood, A&R Partners, 650-762-2838, gwood@arpartners.com.