Atheros Receives ''Most Respected'' Award from Fabless Semiconductor Association; Company Recognized for Vision and Strategy in Driving Next-Generation Wireless Networking Technology.

Business Editors/High-Tech Writers

SUNNYVALE, Calif.--(BUSINESS WIRE)--Dec. 10, 2001

Atheros Communications has received the Fabless Semiconductor Association's 2001 "Most Respected Private Fabless Company" award. The award winner was chosen by the fabless community, which includes semiconductor financial and industry analysts, and suppliers. Industry colleagues and peers selected Atheros as the private fabless company that they most respected in terms of product, vision, strategy and future opportunities. The award was presented at FSA's Annual Awards Dinner on December 6, 2001.

"Each winner showed determination and perseverance to excel despite widespread market obstacles felt especially in the technology industry this year," said Jodi Shelton, executive director of the Fabless Semiconductor Association. "Atheros exemplifies the innovation and expertise that the FSA believes characterizes a future leader of our industry."

Atheros is a leading supplier of core technology for high-speed wireless local area networks. The company is now shipping in volume the world's first production chipset compliant with the IEEE 802.11a 5-GHz standard. Supporting data transfer rates up to 54 megabits per second (Mbps) in standard mode and higher speeds in Atheros Turbo Mode(TM), the AR5000 chipset enables high-speed WLAN connectivity in enterprise, small-medium business, home and public access areas.

In implementing its business strategy, Atheros conducted significant research on how to apply state-of-the-art integrated circuit architectural theories, developed at Stanford University and University of California at Berkeley, to wireless LANs. Using advanced data communications theory and breakthrough "Radio-on-a-Chip" (RoC) design methodologies, Atheros' team of world-class engineers fundamentally rearchitected at the system level how a radio is engineered. The company's highly integrated two-chip set is fabricated using standard digital CMOS, and includes the world's first complete, all-CMOS RoC above 5 GHz. The company's products are fabricated at TSMC in Taiwan, the world's largest semiconductor foundry.

"It's a real honor to have been chosen by our FSA peers and industry experts for this prestigious award," said Rich Redelfs, president and chief executive officer of Atheros Communications. "Working with industry-leading partners, Atheros has implemented a fabless outsourced manufacturing strategy to deliver low-cost, high-frequency designs in high volume. Our Wi-Fi5 (802.11a) technology has the performance and scalability to connect new classes of devices and enable new high-speed wireless applications, and the devices we're shipping are helping to make our vision of an unwired world a reality."

The award adds to Atheros' growing list of industry awards and recognition received this year, including Andrew Seybold's Outlook4Mobility 2001 Wireless LAN Award, Communication System Design's 2001 Comet Award for the Industry's Leading and Emerging Communication Companies, Red Herring's Top Ten Entrepreneurs for 2001, N+I Tokyo 2001 Best of Show Special Award in the

Enterprise Infrastructure Business Category, Fortune's Cool 2001, Fortune Small Business' Next Hot Companies, PC Magazine's Innovation in Infrastructure Award for the Wireless Hardware Category, Go Mobile's Silver Demo God Award, Mobile Insights' Gold Demo God Award and EDN's Innovator of the Year Finalist.

About the Fabless Semiconductor Association

In 1994, industry leaders incorporated FSA (www.fsa.org) to achieve a more optimal balance between wafer demand and capacity. Its more than 300 corporate members represent fabless companies, integrated device manufacturers, foundry providers, packaging/assembly houses, electronic design automation companies, investment bankers, intellectual property providers and other companies. The organization encourages the relationship between fabless companies and suppliers; facilitates business partnerships; creates awareness of the fabless business model; disseminates relevant data; and fosters standards and policies. The FSA vision is that by 2010, half of all integrated circuit revenue will come from fabless operations.

About Atheros Communications, Inc.

Atheros Communications was founded in May 1998 by leading experts in radio and signal processing from Stanford University, the University of California at Berkeley, and private industry. The Company's mission is to provide wireless networking technologies that drive transparent connections between all computing, communications, audio and video devices. Funded by August Capital, Fidelity Management & Research Company, Foundation Capital, New Enterprise Associates and others, Atheros has raised a total of $98.3 million in three rounds of funding. The Company employs over 140 people and has filed more than 45 wireless technology patents. For more information, visit www.atheros.com or send email to [e-mail].

Note to Editors: Atheros, Atheros Turbo Mode and the Atheros logo are trademarks of Atheros Communications, Inc. All other trademarks are the property of their respective holders.