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Press Release

Atheros Communications’ 802.11a/b/g WLAN Technology Offered in New TV Notebook PCs From Epson Direct

Notebooks Will Be Branded With Atheros Super AG® ™ Logo

SUNNYVALE, Calif., Oct. 25, 2004—Atheros Communications, Inc. (NASDAQ: ATHR), a leading developer of advanced wireless LAN (WLAN) chipsets, today announced that its AR5004X WLAN chipset with Super AG® high-throughput technology is being used in Epson Direct Corp.’s TV notebook PC line, the EDiCube F Series. The WLAN connectivity feature is offered as a build-to-order option. The Epson notebook PCs that are configured with this built-in WLAN capability will include the Atheros Super AG® logo. Launched last week, the products are available now for purchase through the Epson Direct web site and order center in Japan. Atheros is the only available WLAN technology for the Epson EDiCube F series. 

The Atheros chipset that is used in the new EDiCube F730 and EDiCube F750 models supports all major IEEE 802.11 wireless networking standards including 802.11a, 802.11b and 802.11g. With this built-in WLAN feature, users can take advantage of not being tethered to their living room or home office, and can use any 802.11-based WLAN network outside of their homes. The WLAN chipset also includes Super AG® technology, which delivers superior wireless networking capabilities, as measured by high throughput and range.

“This is the first time for Epson Direct to support the Super AG® logo,” said Tomoki Ohsawa, General Manager of Atheros Communications K.K. “With the logo, we are able to highlight the advantages of our wireless technology, and we expect this will lead more users to choose built-in WLAN features on their new notebook PCs.”

In addition to offering industry-leading throughput and range capabilities, the Atheros WLAN solution that is incorporated into Epson Direct’s notebook PCs also supports the industry’s most robust wireless security standard, IEEE 802.11i. An AES encryption engine is built into the hardware of all Atheros 802.11a/g and 802.11g chipsets, allowing real-time encryption without any performance degradation. Atheros also supports the draft 802.11e Quality of Service (QoS) specifications, providing advanced features for delivering wired-quality video and audio content via a wireless connection.

About Super AG® Technology

Atheros’ popular Super AG® technology employs innovative performance-enhancement features—including packet bursting, fast frames, and data compression—that improve the throughput and range of wireless networking products. Super AG® supports up to 54 megabits-per-second (Mbps) data link rates for users in Japan, with typical end-user throughputs as high as 40 Mbps. Outside Japan, with an additional dynamic turbo mode activated, the technology can achieve throughputs of more than 60 Mbps for typical data.

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 AG® 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, capabilities and benefits of Atheros’ and Epson’s products; the incorporation of Atheros’ wireless technology into Epson’s notebook PC products; the increase of demand for the built-in WLAN feature; and the effects of Epson’s use of the Super AG® logo on its notebook PC 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, whether Epson continues to incorporate Atheros’ products into its notebook PCs; the effects of competition; the rate of growth of demand for the built-in wireless LAN feature in personal computers; whether the Super AG® logo will become well known and successfully contribute to consumers choosing the built-in the WLAN feature in PCs; general economic conditions in Japan and other global markets; 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.