Atheros Introduces First Adaptive Bandwidth WLAN Technology; New Super G Capability Automatically Increases 802.11g Network Throughput Based on Spectrum Availability in Adjacent Channels.

Business Editors/High-Tech Writers

SUNNYVALE, Calif.--(BUSINESS WIRE)--March 15, 2004

Atheros Communications, a leading developer of advanced wireless LAN (WLAN) chipsets, today announced the first commercial deployment of adaptive bandwidth technology. This new capability, which is based on Atheros' award-winning Super G(TM) technology, is a software update that provides performance-on-demand based on channel availability. It is the first commercial deployment of a variable-bandwidth radio system that will monitor the entire 802.11g band and automatically increase the throughput when channels are available.

Atheros Super G technology operates in two modes to increase bandwidth. The base mode uses standards-based data compression, large frames and bursting features to deliver real-world network throughput in excess of 40 Mbps for typical data files, an increase of up to two times over traditional 802.11g networks. The enhanced mode, called Dynamic Turbo, further increases throughput by extending the bandwidth of the signal to provide a total throughput of over 60 Mbps for typical data, up to three times greater than traditional 802.11g networks. These figures compare to 18-22 Mbps peak throughput for standard 802.11g solutions, and recent throughput claims of up to 30 Mbps for proprietary solutions from other vendors.

The new Dynamic Turbo extends the feature set of Super G products by adding a capability that automatically detects and adapts to nearby Super G, 802.11g, and 802.11b products. This capability aligns with Federal Communications Commission (FCC) initiatives on Cognitive Radio, which promote more efficient sharing of spectrum. It also allows greater use of the spectrum overall, because the Atheros Super G technology enhances channel efficiency, leaving more channel access time available for other network users. The new feature has been released to Atheros' customers, and will be available to end users in new products and as Web-based upgrades.

Independent tests conducted by Elliott Laboratories have shown that Super G products with Dynamic Turbo will consistently deliver over 60 Mbps of end-user TCP/IP throughput using typical data files. Elliott Labs tests also show that, when operated in close proximity to a nearby 802.11b or 802.11g wireless network, Super G automatically adjusts to single-channel transmission allowing other users to achieve maximum throughput.

"This new capability allows users to take advantage of the benefits of Super G technology at the fastest rate available," said Colin Macnab, vice president of marketing and business development of Atheros. "With this advance in Super G technology, we've delivered on another milestone in our product strategy to introduce adaptive, high performance radios that offer greater throughput and extended range. This will improve the overall wireless user experience, both for those using Atheros technology and also those using other competing technologies. The Dynamic Turbo feature allows Atheros Super G products to automatically detect and adapt to the wireless environment."

Super G technology is found in many of the highest performance WLAN products available today to increase performance while maintaining backwards compatibility with wireless networks that use standard 802.11g or 802.11b products.

For more details about Super G technology, please refer to the Atheros whitepaper titled "Super G: Maximizing Wireless Performance" at www.atheros.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, 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 [e-mail].

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

FORWARD-LOOKING STATEMENTS:

Except for the historical information contained herein, the matters set forth in this press release, including the features, performance and benefits of Atheros' adaptive bandwidth technology based on its Super G solution, and Atheros' product strategy, 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 impact of competitive products and technological advances, manufacturing difficulties, difficulties in development of enhanced and new products, the company's ability to market the product and ship in volume, and other risks detailed in Atheros' SEC filings. These forward-looking statements speak only as of the date hereof. Atheros disclaims any obligation to update these forward-looking statements.