Atheros Ships 75 Millionth Wireless LAN Chipset

Demand for Atheros’ Market-Leading Wi-Fi Wireless Solutions Gains Strong Momentum in 2006

SANTA CLARA, Calif., Oct. 23, 2006 — Atheros Communications, Inc. (NASDAQ: ATHR), a leading developer of advanced wireless solutions, today announced that it has shipped more than 75 million wireless LAN (WLAN) chipsets to date. Forty percent of these 75 million cumulative chipsets were shipped during the first three quarters of 2006, equal to well over a chipset shipped per second.

This recent Atheros milestone is due to the company’s technical competence in wireless solutions on silicon which has resulted in market-leading silicon and bill-of-materials (BOM) integration combined with unmatched product performance. A notable example of the company’s extraordinary integration and performance is the AR5005G – the world’s first complete single-chip 802.11b/g WLAN solution – which has achieved more than $100 million in sales since its introduction in 2004. The solution not only delivers extreme cost-efficiency to Atheros’ customers, but also provides superior throughput and range with Super G®, an optional feature that delivers 108 Mbps physical data rates in 802.11g standard-compliant operation.

With its technical know-how, Atheros has also achieved numerous industry firsts that have attracted a world-class customer base for its Wi-Fi products. Among the company’s many accomplishments are the first dual-band 802.11a/b/g chipset, the first single-chip access point-on-a-chip solution for 802.11b/g and the world’s first single-chip 802.11a/b/g solution to support PCI Express. These and many other innovative Atheros solutions are featured in products from the world’s leading PC OEMs, SOHO and enterprise network equipment vendors, service providers and mobile handheld device makers.

“Atheros’ success and growth have come from our extraordinarily talented employees and their commitment to provide customers with the best solutions they can invent,” said Craig Barratt, president and chief executive officer of Atheros. “Shipping our 75-millionth wireless LAN chipset demonstrates our customers’ success in leveraging these solutions to satisfy the growing consumer demand for wireless LAN. We will build on this momentum by applying our expertise and passion to innovative new products and markets as we strive to bring greater value to our customers.”

Atheros continues to raise the performance bar for providing the best wireless user experience with its successful Super G®, Super AG®, Atheros XR® and ROCm®-based solutions. The company’s latest Wi-Fi innovation, XSPAN® with Signal-Sustain Technology™ (SST), is the world’s only 3x3 draft 802.11n design. Atheros’ engineering design team successfully integrated three radios into a single chip to achieve significantly greater connection reliability – enhancing throughput to higher levels and at greater distances than typical 2x2 MIMO solutions. This is a major competitive advantage for Atheros and its customers seeking to lead the emerging market for 802.11n technology. According to IDC, the 802.11n chipset market will grow at a 117 percent annualized rate to reach $2 billion (250 million units) by 2010.[1]

Driving to deliver a higher proportion of the complete networking solution, Atheros recently introduced its AR7100 advanced wireless network processor family. Atheros’ network processors are optimized for more demanding WLAN applications like media streaming and voice-over-IP (VoIP) and enable the company to drive greater cost and manufacturing  efficiencies for its customers. Atheros’ Radio-on-Chip for Mobile (ROCm) solutions targeting the mobile wireless market are gaining strong momentum. Earlier this year, Atheros announced a joint reference platform with Qualcomm which simplifies the integration of Wi-Fi into cellular handsets. Atheros expects to announce design wins featuring its ROCm technology in the near-term.

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@atheros.com

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Atheros, the Atheros logo, Super G, Super AG, XR, XSPAN, Signal-Sustain Technology and ROCm are trademarks of Atheros Communications, Inc. All other trademarks mentioned in this document are the sole property of their respective owners.

NOTE ON 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 and technologies, and Atheros’ ability to continue to develop leading products and technologies; the anticipated growth of the 802.11n chipset market; and the anticipated announcements of design wins for Atheros’ ROCm technology, 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 the development and manufacture of new products and upgraded products; the effects of competition and technological change; difficulties in attracting and retaining qualified engineering personnel; the timing and extent of the growth of the 802.11n chipset market and the rate of adoption of WLAN functionality in the mobile consumer devices market; general economic conditions; and other risks detailed in Atheros’ Annual Report on Form 10-K for the year ended December 31, 2005 and its Quarterly Report on Form 10-Q for the quarter ended June 30, 2006, 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.

Although we believe that the statistical information obtained from IDC is reliable, we have not independently verified this data. IDC generally indicates that it has obtained its information from sources believed to be reliable, but does not guarantee the accuracy and completeness of the information.