Atheros Communications Receives Outstanding Financial Performance Award from Fabless Semiconductor Association

SUNNYVALE, Calif., Dec. 14, 2004—Atheros Communications, Inc. (NASDAQ: ATHR), a leading developer of advanced wireless LAN (WLAN) chipsets, has received an award from the Fabless Semiconductor Association (FSA) for Outstanding Financial Performance by a Public Company. The award recognizes companies that doubled either revenue or net-income over eight consecutive quarters ending September 2004. Atheros received the award at the FSA’s tenth annual Awards Dinner Celebration on Dec. 9, 2004, at the Santa Clara Convention Center in Santa Clara, Calif.

“All of our employees contribute to Atheros’ success,” said Craig Barratt, president and chief executive officer of Atheros Communications. “We want to thank the FSA for this industry recognition based on our financial merits and business execution. We believe strongly in the fabless business model and will continue to bring to market advanced wireless technologies based on our world-class RF integration expertise and low-cost digital CMOS designs.”

In 2004, Atheros introduced the world’s first single-chip 802.11g and 802.11a/b/g WLAN client solutions as well as the first single-chip 802.11g access point solution. The company also launched the first standards-compliant WLAN chipset optimized for high-quality multimedia applications. This chipset features multiple-radio/smart-antenna capabilities, including advanced transmit beamforming and multiple receive combining to extend range and improve robustness. Atheros’ performance-enhancement capabilities such as the company’s popular Super G®, Super AG® and Atheros XR™ also continued to gain support from customers that want the best wireless user experience.

“We salute Atheros Communications for its continued financial successes in providing solutions for wireless communications products,” said Jodi Shelton, co-founder and executive director of the FSA. “The FSA award for outstanding financial performance highlights Atheros’ achievements for the third consecutive year, and we look forward to the company’s continued contributions to the industry.”

About the Fabless Semiconductor Association

The FSA is the voice of the global fabless business model. Incorporated in 1994, the Association positively impacts the growth and return on invested capital of this business model to enhance the environment for innovation. The FSA provides a platform for meaningful global collaboration between fabless companies and their partners; provides members with timely research and resources; and identifies, debates, and discusses business and technical issues. FSA members include fabless companies and their supply chain and service partners and represent more than 21 countries spanning North America, Asia-Pacific, Europe and the Middle East. www.fsa.org

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


Atheros, the Atheros logo, Super G, Super AG® and Atheros XR 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’ products, Atheros’ future plans, and the continued success of the fabless business model, 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; the effects of competition; global market and economic conditions; and other risks detailed in Atheros’ Quarterly Report on Form 10-Q for the quarter ended September 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.