Atheros Expands ROCm Bluetooth® Portfolio with New System-on-Chip for Headsets 

AR3031 Low-Cost Bluetooth v2.1 + EDR Solution Delivers Unmatched Power Efficiency and Flexible Design

SANTA CLARA, Calif., Nov. 8, 2007 — Atheros Communications, Inc. (NASDAQ: ATHR), a leading developer of advanced wireless solutions, today announced the second member of its growing ROCm® family of Bluetooth wireless solutions – the Atheros AR3031. This system-on-chip (SoC) meets the growing demand for Bluetooth wireless mono headsets by providing a powerful combination of market-leading power-efficiency, design flexibility and cost.

The solution employs Atheros’ leading RF CMOS and systems engineering expertise to deliver the industry’s lowest bill-of-materials (BOM) cost using an economical, single-chip, 5mm x 5mm QFN package, while most competitive solutions use more expensive BGA packages. The AR3031 also features an integrated, high-density Read-Only Memory, which provides greater cost-efficiencies over higher-priced, competitive Flash-based solutions.

Demand for Bluetooth wireless mono headsets has continued to increase at a dramatic 30 percent pace over the last 12 months, driven by cellular phone users’ desire for hands-free operation and the widespread development of related driving legislation. IMS Research projects that by 2009, the total worldwide market will be more than 100 million for low-cost, mono Bluetooth headsets and around 20 million for stereo audio Bluetooth headsets[1]

“With Atheros’ AR3031, the company is addressing the second-largest Bluetooth market, significantly expanding our presence in the Bluetooth arena,” said Sam Endy, vice president and general manager of the Mobile Wireless Business Unit for Atheros. “The AR3031 delivers unprecedented levels of power-efficiency and design flexibility, while driving a highly aggressive price point to give our customers a competitive edge.”

Industry’s Lowest-Power Bluetooth for Headsets

The AR3031 achieves 20 percent greater power efficiency in active mode than competitive solutions. This is accomplished with Atheros-designed power-saving protocols, chip architecture and circuit techniques. The SoC employs Atheros’ proprietary Direct Memory Access (DMA) protocol, a power-savings mechanism which allows devices to transfer data with minimal CPU involvement. The AR3031 architecture also features power refinements achieved through circuit design techniques and also features an integrated low-power oscillator. Additional power savings are derived with the design’s 1.2V power supply which offers greater battery efficiency than that found in competitive solutions.

Optimal Design Flexibility

The highly-versatile AR3031 SoC supports standard codec interfaces, allowing designers to utilize the solution in virtually any Bluetooth wireless headset design. To enable easy headset feature customization, the solution offers a PC-based design platform, Atheros Headset Studio, which allows OEMs to create product differentiation with custom ring tones, button function configurations, LED light patterns and other consumer-friendly product attributes. The solution features all the necessary profiles and software integrated into the chipset’s firmware and also supports a range of external codecs with DSP capabilities for advanced audio processing. The solution’s completeness enables ease of porting to provide manufacturers with significant time-to-market advantage.

Additional Features

The AR3031 solution features an integrated 32-bit CPU, 32 KB RAM and RF Switch, and does not require an external Balun. It includes a PCM interface for audio, as well as general purpose input/outputs (GPIOs) for LEDs and buttons, and dual 1.2V voltage regulators on-board.

Product Availability

The AR3031 is currently sampling to customers and will be in volume production in the first quarter of 2008.

About Atheros Communications, Inc.

Atheros Communications is a leading developer of semiconductor system solutions for wireless and other network communications products. Atheros combines its wireless and networking systems expertise with high-performance radio frequency (RF), mixed signal and digital semiconductor design skills to provide highly integrated chipsets that are manufactured on low-cost, standard complementary metal-oxide semiconductor (CMOS) processes. Atheros technology is used by a broad base of leading customers, including personal computer, networking equipment and consumer device manufacturers. For more information, please visit www.atheros.com or send email to info@atheros.com. 

###

Atheros, the Atheros logo and ROCm are trademarks of Atheros Communications, Inc. All other trademarks mentioned in this document are the sole property of their respective owners.

The Bluetooth® word mark and logos are owned by the Bluetooth SIG, Inc. and any use of such marks by Atheros is under license. Other trademarks and trade names are those 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, benefits and performance of Atheros’ AR3031; the expected timing of volume production of the AR3031; and the anticipated future growth in the worldwide market for Bluetooth-enabled wireless headsets, 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, risks associated with the development  of new products and technologies; the effects of competitive technologies and technological change; general market conditions, and the risks detailed in Atheros' Annual Report on Form 10-K for the year ended December 31, 2006 and its Quarterly Report on Form 10-Q for the quarter ended September 30, 2007, 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 IMS Research is reliable, we have not independently verified this data. IMS Research 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.