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Press Release

Atheros and UTStarcom Collaborate on Feature-Rich, Ultra-Thin PAS Handset in China

UTStarcom Leverages Atheros AR1900 to Deliver X30, One of China’s Best-Selling PAS Mobile Phones

SANTA CLARA, Calif., July 26, 2006—Atheros Communications, Inc. (NASDAQ: ATHR), a leading developer of advanced wireless solutions, today announced that its single-chip solution for the PAS (Personal Access System) cellular market in China, the AR1900, is featured in UTStarcom’s ultra-thin X30 PAS handset. Since its launch in April 2006, the X30 has become a best-selling PAS handset model in China. UTStarcom has implemented the AR1900 solution to deliver a complete portfolio of full-featured yet low-cost mobile handsets for the growing PAS market.

The newest addition to UTStarcom’s iPAS™ family, the razor-thin X30, is only 10 mm thick and weighs less than 60 grams. In part, the product’s success stems from its extremely thin form factor, which hides the antenna inside the mobile phone for a trendy look that appeals to Chinese consumers.

The X30 has an impressive set of features including a 1.5-inch color LCD screen, MP3 ringtone and games, which make it a must-have mobile fashion accessory. In addition to its streamlined design, it offers reliable voice connectivity through seamless handover between PAS base stations that are now prevalent throughout Chinese metropolitan markets. Despite its small size, the X30 offers impressive battery life with up to 300 hours of standby and seven hours of talk time.

“UTStarcom’s family of iPAS solutions is evolving to satisfy growing consumer demand for enhanced phone features like the color display and personalized ringtone delivered in ultra-thin designs,” said John Yang, Senior VP, General Manger of UTStarcom’s Terminals Business China Operations. “Atheros’ high-performance, cost-effective AR1900 design has enabled us to simultaneously produce market hits while increasing our PAS handset profit margin. We look forward to growing our PAS portfolio and providing compelling handsets like the X30 at price points that result in mainstream adoption.”

The Atheros’AR1900 is a complete, highly integrated, low-cost handset solution that includes a cellular transceiver, baseband, application processor, audio paths, power management, keypad, display and USB interfaces. The solution’s enhanced features, compact size and power-saving technology are designed to enable manufacturers to develop smaller, less expensive PAS handsets.

“UTStarcom has been an ideal partner, fulfilling Atheros’ vision to provide the highest performance and lowest cost for PAS handsets,” said Jason Zheng, vice president of Asia Pacific for Atheros. “They have leveraged the Atheros AR1900 solution to its full advantage in the X30 handset, which is already a market-proven success.”

UTStarcom sells PAS handsets in mainland China, Taiwan, Vietnam and South America, and has captured approximately 50 percent of the PAS equipment market outside of Japan. For more information about the X30, please visit here. For more information about the Atheros AR1900, please visit here.

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, Canada, 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:

Except for the historical information contained herein, the matters set forth in this press release, including the features, benefits and performance of Atheros’ AR1900 product and UTStarcom’s PAS products; the anticipated future growth and mainstream adoption of PAS, and the anticipated growth and success of UTStarcom’s PAS portfolio of products, 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 growth of the PAS market and the effects of competing technologies; the effects of competition in the PAS market; difficulties in developing and manufacturing new and enhanced products and technologies; 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 March 31, 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.


For Atheros press contact: Dakota Lee,  408-720-5597, dakota@atheros.com, or Greg Wood, A&R Partners, 650-762-2838, gwood@arpartners.com

For analyst inquires contact: Deborah Stapleton of Stapleton Communications, Inc.,
+1-650-470-0200,
deb@stapleton.com