Atheros Communications and UTStarcom Collaboration Delivers Portfolio of PAS Cellular Solutions

Atheros Technology Enables Feature-Rich Handsets While Reducing Costs

SANTA CLARA, Calif., April 24, 2006—Atheros Communications, Inc. (NASDAQ: ATHR), a leading developer of advanced wireless solutions, today announced that UTStarcom, Inc. (NASDAQ: UTSI), a global leader in IP-based, end-to-end networking solutions and services, has launched four high-performance, low-cost, IP-based Personal Access System (iPAS™) handsets based on the Atheros AR1900 chip. The UTStarcom portfolio of handsets is the first to be based on Atheros’ cellular solution, which is the world’s only single-chip technology for PHS (Personal Handyphone System) or PAS as it is known in China.

The Atheros and UTStarcom collaboration has resulted in an array of handsets ranging from the ultra low-cost UT117 to the feature-rich UT619:

• UT619 – Launched this month, the UT619 delivers rich handset features, including color LCD and MP3 ring tone support in a clam shell design.

• UT328 – The bar-shaped UT328, also launched in April, is the first ultra-thin PHS handset with a color LCD and thickness of only 10 mm.

• UT117 – The UT117, the cost-effective, bar-shaped handset was launched December 2005.

• UT229 – The UT229, a low-priced alternative in a clam shell design, was launched October 2005.

“Atheros has been a valuable development partner offering UTStarcom a significant business advantage with its cost-efficient, innovative solution,” said John Yang, General Manager of the Terminals Business Unit. “We believe the low-cost nature of these handsets has the potential to increase our penetration of the PAS market in China and in other emerging markets.”

PHS/PAS is a flexible wireless access networking technology that supports voice, video and data applications on mobile cell phones. The technology is also featured in home gateway products that provide both PAS cordless phone service and broadband connectivity. UTStarcom markets PAS technology in mainland China, Taiwan, Vietnam and South America, and has captured approximately 60 percent of the PAS equipment market outside of Japan.

“PAS cellular technology has experienced remarkable growth in China since its introduction in the late 1990’s,” said Will Strauss, president of Forward Concepts. “We anticipate Atheros’ cost-effective, single-chip design to fuel adoption of the PAS technology by reducing handset costs to a level accessible to many.”

The AR1900 chip’s robust features, compact design and power-saving technology enable manufacturers to develop smaller, less expensive PHS/PAS handsets that can stimulate market growth. In the single-chip AR1900 design, Atheros integrates a complete handset solution, including cellular transceiver, baseband, application processor, audio paths, power management, and keypad, display and USB interfaces. Atheros’ AR1900 also includes an ARM9 Processor for high-demand applications like MP3 and MP4 decoding. 

“Atheros is known for its unmatched capabilities in chip integration and performance,” said Craig Barratt, president and chief executive officer of Atheros. “UTStarcom is an ideal partner to leverage these assets by bringing innovative PAS solutions to market. Their growing portfolio of Atheros-based handsets is the result of the terrific collaboration between our companies.”

About UTStarcom, Inc.

UTStarcom is a global leader in IP-based, end-to-end networking solutions and international service and support. The company sells its broadband, wireless, and handset solutions to operators in both emerging and established telecommunications markets around the world. UTStarcom enables its customers to rapidly deploy revenue-generating access services using their existing infrastructure, while providing a migration path to cost-efficient, end-to-end IP networks. Founded in 1991 and headquartered in Alameda, California, the company has research and design operations in the United States, China, Korea and India. UTStarcom is a FORTUNE 1000 company

For more information about UTStarcom, visit the company’s Web site at www.utstar.com.

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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NOTE ON FORWARD-LOOKING STATEMENTS:

This release includes forward-looking statements by and about UTStarcom and Atheros, including the foregoing statements regarding the expectation that Atheros-based handsets will encourage increased adoption of the PAS technology in China and other emerging markets and may increase UTStarcom’s penetration of the PAS market, the expectation regarding the flexibility and versatility of the PHS/PAS technology, the expectation regarding the cost-effectiveness of Atheros’ single-chip design and its impact on the adoption level of the PAS technology and the affordability of handsets to consumers, the expectation regarding the AR1900 chip’s features and functionality, and the anticipated impact of the AR1900 chip on the ability of manufacturers to produce less expensive PHS/PAS handsets that can stimulate market growth. These statements are forward-looking in nature and subject to risks and uncertainties that may cause actual results to differ materially. These risk factors include rapidly changing technology, the changing nature of global telecommunications markets, the termination of significant contracts and/or strategic relationships, the direction and results of future research and development efforts, evolving product and applications standards, reduction or delays in system deployments, product transitions, potential non- realization of backlog, changes in demand for and acceptance of UTStarcom’s products, the effects of competition, general adverse economic conditions, and trends and uncertainties such as changes in government regulation and licensing requirements. UTStarcom and Atheros also refer readers to the risk factors identified in UTStarcom’s and Atheros’ respective latest Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, as filed with the Securities and Exchange Commission.