Atheros Introduces Single-Chip 802.11g Wireless LAN Solution; New Wireless Chip Delivers High Performance and Low Power Consumption in a Small Form Factor Digital CMOS Design.

Business Editors/High-Tech Writers

SUNNYVALE, Calif.--(BUSINESS WIRE)--Jan. 26, 2004

Atheros Communications, a leading developer of advanced wireless LAN (WLAN) chipsets, today announced the world's first complete single-chip IEEE 802.11g WLAN solution, the Atheros AR5005G. The chip integrates an entire 802.11g solution -- Media Access Controller (MAC), baseband processor, and a high-performance 2.4 GHz radio -- in an integrated low-cost digital CMOS (complementary metal-oxide semiconductor) design.

The new single-chip AR5005G is the most recent example of the Atheros team's world-class RF integration skills using standard CMOS. The AR5005G solution is the company's third-generation 802.11g silicon. It was preceded by a three-chip solution launched in February 2003, and a two-chip solution launched in June 2003.

In addition to combining the MAC, baseband processor, and 2.4 GHz radio on a single chip, Atheros has integrated many discrete components of previous 802.11g solutions into the AR5005G design. The result is a 35 percent part count reduction from products based on two-chip solutions, and a similar reduction in rest-of-BOM (bill-of-materials) costs. This highly integrated design will enable low-cost 802.11g products that do not have the range and throughput limitations often experienced by users of low-cost 802.11b solutions.

Like Atheros' earlier 802.11g solutions, the AR5005G uses an innovative multi-phase approach to signal processing, which extends the battery life of mobile devices by controlling the power of different sections of the wireless device according to the level of system and network activity. This power-saving technique allows the chip to consume up to 98 percent less power than multi-chip WLAN solutions on the market today. It is also noteworthy that the new AR5005G single-chip integration achieves the same range and throughput as the preceding Atheros multi-chip 802.11g solution.

The AR5005G supports in hardware, without performance reduction, the latest WLAN security standards, including Wi-Fi Protected Access (WPA and WPA2) and 802.11i Enhanced Security using Advanced Encryption Standard (AES). In contrast, competing wireless LAN products with firmware encryption can suffer a 20-50 percent performance reduction when WPA or AES is enabled. The AR5005G also supports Cisco Compatible Extensions (CCX).

Atheros intends to expand its family of single-chip 802.11 products throughout this year and to support robust throughput based on Atheros' standards-plus Super G(TM) and Super A/G(TM) enhancements. This technology will allow WLAN products with among the highest throughput available today, enabling real throughput rates of over 70 Mbps in a typical home environment. This family of single chip products will also support extended range operation, XR, which enables connections at greater distances from the access point and provides wireless connectivity to areas of the home in which signals are otherwise too weak to connect.

Atheros AR5005G availability

Atheros is currently sampling the AR5005G, with volume production expected in the second quarter. The single-band 802.11g chip provides high performance for the home and small office users, while offering a flexible upgrade path from legacy 802.11b networks.

About Atheros Communications, Inc.

Atheros Communications develops leading solutions for wireless communications by combining its wireless systems expertise with high performance RF mixed signal and digital semiconductor design skills, enabling its customers to deliver high performance 802.11 products for use in the office, home and on the road. Atheros technology is being used by many of the world's foremost wireless equipment manufacturers. For more information, visit www.atheros.com or send email to [e-mail].

Atheros, the Atheros logo, Super G and Super A/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' single-chip solution and the intended expansion of Atheros' family of single chip 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 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.