New Router Offers “Dual-Network” Capability for Supporting Wireless Video/Audio and Data; XR-Enabled Products Double the Range of Typical 802.11 Solutions

SUNNYVALE, Calif., Oct. 4, 2004 – Atheros Communications, Inc. (NASDAQ: ATHR), a leading developer of advanced wireless LAN (WLAN) chipsets, today announced that NETGEAR, Inc., a worldwide provider of technologically advanced, branded networking products, has selected Atheros’ 802.11a/b/g WLAN solution with eXtended Range (XR) technology for its new high-performance Double 108 Mbps Wireless Firewall Router (WGU624). NETGEAR also introduced the NETGEAR Double 108 Mbps Wireless PC Card (WG511U), which can be used in conjunction with its new router.

The NETGEAR router not only provides consumers with market-leading performance, but also offers two concurrent wireless networks for home networking applications. Using the Atheros AR5004X chipset, the router provides an 802.11b/g network for consumers’ typical data needs, including email, file downloads and Internet browsing, and an 802.11a network, which operates in the less congested 5 Ghz band, to support high-quality video and audio streaming. The 802.11a network supports bandwidth-hungry applications and offers more channels and less “noise” than the 802.11b/g network, which can be plagued by interference from microwave ovens and cordless telephones.

Atheros’ innovative XR technology enables the NETGEAR router to cover multi-story brick or masonry homes and reduces dead spots. While typical 802.11 chipset solutions focus heavily on maximizing throughput in benchmark tests or in office environments, few perform well at long range or in more challenging spaces, such as in a multi-story home. Atheros chipset solutions, however, dramatically stretch the performance of a WLAN by embedding separate optimized designs for high performance, high signal-to-noise and long range, low signal-to-noise ratio environments. The architecture delivers receive sensitivities of up to –105dBm, over 20 dB better than the 802.11 specification. The eXtended Range operation is transparent to end users, and wireless products enabled with XR technology are fully interoperable with Wi-Fi compliant third-party chipsets.

“The NETGEAR Double 108 Mbps Router and PC Card are solving the challenge of Wi-Fi product range by using XR technology to deliver access throughout a home,” stated Colin Macnab, vice president of marketing and business development of Atheros Communications. “NETGEAR and Atheros’ continued innovation is an indication of how home networking is evolving. The growth of streaming video, audio and other advanced applications require more innovative, robust network support such as that offered by NETGEAR.”

The NETGEAR Double 108 Mbps router and card are also equipped with Super AG® technology that offers data link rates of up to 108 Mbps over both the 802.11b/g and 802.11a streams, while maintaining backwards-compatibility with both wireless standards.

The low-power Atheros AR5004X chipset used by NETGEAR also supports the industry’s most robust security standard, IEEE 802.11i. An AES encryption engine is built into the hardware of all Atheros 802.11a/b/g and 802.11b/g chipsets, allowing real-time encryption with no performance degradation in computing, consumer electronics and wireless broadband applications. Atheros’ chipsets also support the WMM™ (Wi-Fi Multimedia) and draft 802.11e Quality of Service (QoS) specifications, providing advanced features for delivering wired-quality video and audio content via a wireless connection.

Super AG® technology

Super AG® employs multiple techniques including Dynamic Turbo with Adaptive Radio technology, packet bursting, fast frames, and data compression to dramatically increase the throughput and range of wireless networking products. The technology supports up to 108 megabits-per-second (Mbps) link rates, and enables user throughput of more than 60 Mbps. 

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, Super AG®, XR and eXtended Range are trademarks of Atheros Communications, Inc. All other trademarks mentioned in this document are the sole property of their respective owners.

FORWARD-LOOKING STATEMENTS:

Except for the historical information contained herein, the matters set forth in this press release, including statements regarding the features, performance and benefits of Atheros’ AR5004X chipset and the NETGEAR Double 108 Mbps Router and PC Card, and the potential applications 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 development and manufacture of new products and upgraded products, unforeseen problems in the performance of the AR5004X chipset or NETGEAR’s products upon broad deployment of these products, and other risks detailed in Atheros’ Quarterly Report on Form 10-Q for the quarter ended June 30, 2004 as filed with the SEC 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.

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.