Mobilecast Will Promote Broadband Area Service to Worldwide Telematics Market Using Products That Exploit the Full Benefits of Atheros’ Super AG® Wireless Chipsets

SUNNYVALE, Calif., May 10, 2004 – Atheros Communications, Inc. (Nasdaq: ATHR) and Mobilecast Telematics, Inc. have agreed to establish a technology partnership for developing two-way information distribution/communications systems for automotive applications and Broadband Area Network systems for the telematics market.

The partnership aims to produce products that combine Mobilecast’s embedded vehicular router [MAG™ (Mobilecast Automotive Gateway)] and its Broadband ITS router with WLAN AP, which uses Atheros’ Super AG® technology.

Atheros Super AG® technology offers the world’s fastest wireless networking performance, enabling transfer speeds in Japan that are 1.5-2 times faster than the current IEEE 802.11a and 802.11g WLAN standards. By applying this technology to the telematics market, Mobilecast will provide vehicle occupants with high capacity data transmission for voice, music and streaming information content that can be used for very advanced communication services such as games, downloadable maps, and broadband multimedia entertainment.

To further increase the penetration of Atheros-based products into the broadband market, Mobilecast and Atheros have also agreed to develop solutions for “hot-area” business services, which allow drivers and passengers to access broadband applications continuously while their vehicle is moving at high speeds (i.e., fast-roaming service). The two companies will also work on VoIP technology for the telematics market.

In addition, Mobilecast has announced that it will be the main sponsor for Tram IMPUL, a racing team for Formula Nippon. It will use this opportunity to install an Atheros Super AG® based terminal into the racecar and evaluate the performance of WLAN technology under demanding environmental conditions. With this project and the other development work, Mobilecast seeks to gain a top market share of the telematics market by achieving the maximum benefits from Atheros’ Super AG® technology.

[see racecar image here]

About Mobilecast

Mobilecast is a leading automotive telematics company based in Tokyo, Japan. Mobilecast plays a proactive role in the significant “e-Japan Project,” designing the future of ITS (Intelligent Transport Systems) and contributing to the creation of a reliable, safe and comfortable mobile communications environment. The ITS system forms an information technology network connecting humans, roads and vehicles using the latest IT technologies. Mobilecast invented the first open-platform telematics model in Japan, enabling people to freely connect to telematics services anytime. Mobilecast is the only Japanese telematics service provider offering service models for the next generation. For more information, visit www.mobilecast.co.jp.

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 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 proposed technology partnership between Atheros and Mobilecast; the development of technologies and products for the automotive/telematics markets; the benefits, features and capabilities of any products that may be developed; and the penetration of Atheros-based products into the broadband market and Mobilecast’s ability to obtain a top market share in the telematics market, 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 Atheros and Mobilecast are successful in entering into and maintaining a partnership for the proposed development; difficulties in the development and manufacturing of new and enhanced products for automotive/telematics applications; the growth of the automotive/telematics market for the technologies and products that may be developed by Atheros and Mobilecast; the companies’ ability to market, sell and ship in volume any products developed; the ability of the companies to gain market share in this market; the effects of competition and technological advances in the industry; and other risks detailed in Atheros’ Prospectus dated February 11, 2004 as filed with the SEC and from time to time 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.

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.