Atheros Launches Industry’s Most-Integrated 802.11g Solution for Carrier Gateways

Atheros’ Newest Single-Chip Design Lowers Cost of Wi-Fi in DSL Routers

SANTA CLARA, Calif., April 9, 2007 — Atheros Communications, Inc. (NASDAQ: ATHR), a leading developer of advanced wireless solutions, today announced  Atheros’ AR2417 chip, the industry’s most highly-integrated, cost-effective 802.11g solution for home gateways. The compact, single-chip solution is the newest member of the company’s seventh-generation AR5007 family. With the AR2417, Atheros has enhanced its most popular selling solution ever, the AR5005G, through significantly increased integration while delivering Atheros-class wireless LAN (WLAN) performance the company’s customers have come to expect. Through its industry-leading integration, the low cost, single-chip solution for mini-PCI and cardbus designs significantly reduces the rest of bill-of-materials (RBOM) by 30-45 percent compared to competitive solutions.

While Atheros’ XSPAN® draft 802.11n solutions are leading the technical innovation curve, the company is also investing in solutions that meet the continuing consumer demand for 802.11g wireless technologies pervasive in mainstream PCs and routers, and that are increasing in DSL gateways. Today, home gateway solutions based on 802.11g technology provide ample performance for basic data networking and web surfing, while the significantly greater throughput enabled by 802.11n networks is required to deliver triple-play services — data, video and voice — throughout the home. From a volume perspective, IDC projects that 802.11g will account for more than 60 percent of total WLAN units through 2008.[1] Atheros expects the AR2417, a simple, low-cost Wi-Fi add-on to existing DSL and xDSL gateway products, to advance the adoption of its low-cost WLAN in home deployments.

Like its predecessor, the highly successful AR5005G, which has achieved more than $100 million in shipments since its introduction, the new AR2417 integrates the media access controller, baseband processor and 2.4GHz radio onto the single-chip design. In addition, the AR2417 now delivers greater value by integrating the low noise amplifier (LNA) and power amplifier (PA) onto the low cost, digital CMOS system-on-chip.

The AR2417 offers the added benefit of its innovative 2-layer mini-PCI design, the industry’s smallest form factor at half the height of existing solutions. The new, compact size reduces the printed circuit board (PCB) cost by 50 percent and RBOM component count by more than 40 percent over the previous generation’s 4-layer design. As a result of these enhancements, Atheros enables easy, low-cost implementation of Wi-Fi technology in existing DSL and xDSL residential gateway designs.

“More than half of all Wi-Fi products shipped worldwide are based on 802.11g, and we expect this trend to continue for the next few years. The AR2417 improves on our previous, incredibly popular 802.11g PCI solution to satisfy the demand for simple, low-cost, wireless data networking in the home,” said Michael Stauffer, director of marketing for the carrier business with Atheros. “With the AR2417, we are delivering the ideal, turnkey 802.11g solution to our DSL customers to provide the easiest route to low-cost Wi-Fi in home gateways.”

The AR2417 includes two development kits, which provide simple upgrade paths from previous Atheros 802.11g PCI platforms. The first kit includes a 2-layer, half-height mini-PCI design for WLAN gateway applications. The second kit includes a 2-layer, single-sided cardbus for aftermarket wireless PC cards. The AR2417 provides support for Windows XP, 2000 and Vista for cardbus clients and Linux for APs. The solution offers advanced security that supports WPA/WPA2 Personal security, EAP 802.1x authentication and an AES encryption engine. The design also features JumpStart for Wireless™ compatible with the Wi-Fi Protected Setup™ standard for simple network configuration. Like all Atheros WLAN solutions, the AR2417 also supports the 802.11e Quality of Service standard.

Product Availability

The AR2417 chip is currently in volume production and shipping to leading retail and carrier customers. For more information, please visit: http://www.atheros.com/pt/AR5007G.htm.

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, XSPAN and JumpStart for Wireless 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, competitiveness and benefits of the AR5007G solution, the IDC projected 802.11g revenues and WLAN semiconductor shipments, and the anticipated adoption of Wi-Fi in home deployments, 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 development and manufacture of new products and upgraded products; unforeseen problems in the performance of new and enhanced products upon broad deployment; general economic conditions, the effects of competition and technological change, and other risks detailed in Atheros' Annual Report on Form 10-K for the year ended December 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.

Although we believe that the forward-looking statistical information from the 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.