First Design to Combine the New Atheros AR5005VA Chipset and NEC Electronics’ MPEG2 Encoder/Decoder Technology

EXPO COMM WIRELESS JAPAN, SUNNYVALE, Calif., July 20, 2004 – Atheros Communications, Inc. (Nasdaq: ATHR), a leading developer of advanced wireless LAN (WLAN) chipsets, today announced the first demonstration of the Atheros AR5005VA, its new multiple-radio/smart-antenna chipset for robust HDTV-quality wireless applications. Atheros and NEC Electronics collaborated on an Audio Video (AV) wireless module, being demonstrated by Atheros at Expo Comm Wireless Japan 2004, which incorporates the AR5005VA chipset and NEC Electronics’ MPEG2 encoder/decoder boards. The AV wireless module is capable of seamless wireless connectivity between multimedia sources such as personal computers (PCs), personal video recorders (PVRs), DVD players, set-top boxes, and display devices such as portable LCD and wall-mounted TVs.

The design combines NEC Electronics’ expertise in MPEG2 chip technology with Atheros’ industry-leading high performance 802.11a/b/g WLAN technology. The AV wireless module features a complete WLAN solution that offers the latest quality-of-service (QoS) features that are supported by 802.11e. The AV wireless module features the AR5005VA 802.11a/b/g chipset, which is designed for robust high-quality multimedia streaming applications.

Next-generation TVs will feature built-in, wireless-enabled MPEG2 decoder boards for receiving media signals from various media sources located anywhere in a home. Additionally, CE manufacturers will also introduce aftermarket wireless video adapters that enable standard-equipped TVs to receive media signals wirelessly from any PC, PVR, DVD player, set-top box or other device.

 “We believe that every home CE device that stores digital video or audio content should be wireless to deliver on the promise of ‘the digital home,’” said Colin Macnab, vice president of marketing and business development of Atheros Communications. “NEC Electronics shares our vision that people should be able to easily display their family videos, movies, favorite TV shows or other media content anywhere in their homes. Atheros’ new AR5005VA chipset meets the demands of high-quality multimedia streaming applications by enabling a robust, standards-based 30 Mbps data rate over a typical range of around 100 feet.”

AR5005VA Product Demonstration

The AV wireless module integrating the Atheros AR5005VA chipset will be demonstrated at Atheros’ booth #2413 at Expo Comm Wireless Japan in Tokyo from July 21-23, 2004. The demo will feature a DVD player that’s sending a high-quality video signal to a connected encoder adapter. The device will convert the signal using a MPEG2 encoder chip before it wirelessly transmits the video signal to a receive adapter. The receiver device, which is connected to a flat-panel TV, will then decode the MPEG2 signal back to an analog signal for playback on the TV.         

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, 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, and the Atheros logo 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 the intended expansion of Atheros’ family of single chip 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’ SEC filings. These forward-looking statements speak only as of the date hereof. Atheros disclaims any obligation to update these forward-looking statements.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Atheros Communications's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.

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.