Solutions Based on Atheros Technology Lead MIMO Segment of U.S. Wireless LAN Market

Products Featuring Atheros Super G® Combined with MIMO Coverage Enhancements Hold Largest Share in U.S. Retail Channels  

SANTA CLARA, Calif., Sept. 26, 2005— Atheros Communications, Inc. (NASDAQ: ATHR), a leading developer of advanced wireless solutions, today announced that consumers are purchasing more wireless networking products based on Atheros Super G® technology combined with Multiple Input Multiple Output (MIMO) coverage enhancements than any other MIMO solutions. Atheros-based MIMO products have maintained the majority share of U.S. retail sales for eight consecutive weeks since July 23, through the most recently reported week ending September 10, according to NPD TechWorld[1]. 

Two leading Atheros customers, NETGEAR and D-Link, have achieved these robust sales results by offering compelling combinations of high throughput and whole-home coverage, at mainstream wireless LAN price points. The NETGEAR RangeMax™ product family consists of the RangeMax Smart MIMO Wireless Router, USB 2.0 Adapter, PC Card and PCI Adapter, all based on Atheros Super G technology with BeamFlex™ Smart Antenna technology from Ruckus Wireless (formerly Video54).

D-Link’s MIMO portfolio includes their Super G with MIMO Wireless Router, Notebook Adapter and Desktop Adapter which deliver higher performance than standard 802.11g products by employing a combination of Atheros Super G technology plus the MIMO techniques known as beamforming and maximal ratio combining.  

These products cited in the NPD market research data deliver the core performance benefits of Atheros Super G technology with data rates up to 108 megabits-per-second (Mbps), resulting in market-leading real end-user throughput up to 65 Mbps when both router and client are using the technology.  Users also enjoy a 20 percent throughput increase when Super G technology is employed on one side of the link in a standard 802.11g network – on either access point or client device.  MIMO coverage enhancements reduce Wi-Fi dead spots and provide broadband connection speeds throughout the home. Atheros’ Adaptive Radio technology allows users to enjoy the benefits of Super G performance and extended coverage while avoiding interference with neighboring WLAN devices. 

Three elements of Super G technology – 40 MHz channel mode, packet bursting and packet aggregation – are expected to be key components of the coming 802.11n standard. The 40 MHz channel mode was pioneered by Atheros in 2003 and is now an acknowledged industry path toward achieving higher performance WLAN, as indicated by the leading proposals to define the 802.11n specification. In addition, the two MIMO techniques currently available from Atheros, beamforming and maximal ratio combining, are also important components of the expected 802.11n specification. 

“It is apparent that in the pre-standard 11n market consumers are reluctant to pay premium prices for products that don't promise interoperability with the final 802.11n specification,” said Will Strauss, president of Forward Concepts, research firm. “Consumers will continue to buy products that extend coverage and add higher performance in the home, but without breaking the bank. The market for 11n products won't truly accelerate until the industry leaders come together to deliver a standard.”  

Atheros Vice President of Marketing Todd Antes added, “Much has been written about MIMO-based products and their benefits. It’s good to see that the consumer, the ultimate arbiter of value, appreciates the price-for-performance offered by our customers’ MIMO products. For the upcoming holiday season, these NETGEAR and D-Link MIMO products are well positioned to continue their strong sales in retail channels.”

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, networking equipment and handset manufacturers. For more information, visit www.atheros.com or send email to info@athers.com.

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Atheros and Super G are registered trademarks of Atheros Communications, Inc. Other names used are for identification purposes only and may be trademarks 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-based MIMO products; the continued leading market share of MIMO products that are based on Atheros solutions; and the expectation that elements of Atheros’ current Super G technology will be components of the expected 802.11n standard, 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; unforeseen defects in the development of Atheros’ 802.11n products; the development of an 802.11n standard and whether this standard will include the expected elements of Atheros’ Super G technology; manufacturing difficulties; difficulties in development of enhanced and new products; and other risks detailed in Atheros’ Annual Report on Form 10-Q for the quarter ended June 30, 2005 as filed with the Securities and Exchange Commission, 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.