Atheros Receives Outstanding Financial Performance Award from Fabless Semiconductor Association.

Business Editors/High Tech Writers

SUNNYVALE, Calif.--(BUSINESS WIRE)--Dec. 10, 2002

Atheros Communications, the leading developer of advanced wireless LAN chipsets, has been named an Outstanding Financial Performer by the Fabless Semiconductor Association (FSA). Atheros was one of only four private companies that were able to demonstrate outstanding financial performance by doubling company revenue or net-income over eight consecutive quarters ending September 2002. FSA recognized Atheros with the award at the FSA's Awards Dinner Celebration on Dec. 5, 2002, at the Santa Clara Convention Center in Santa Clara, Calif.

"By doubling company revenue in two years, Atheros has reached a milestone that many private companies never achieve in this challenging economy," said Jodi Shelton, co-founder and executive director of the Fabless Semiconductor Association. "Atheros exemplifies the business operations and innovative vision that the FSA believes embodies a leader in our industry. We are delighted to have Atheros as an active member with representation serving on the FSA Board, and look forward to seeing the continued achievements in the years to come."

Atheros is a leading developer of networking technologies for secure, high-performance wireless local area networks (WLAN). The company is now shipping in volume the market- leading dual-band WLAN chipset, the AR5001X, supporting both the IEEE 802.11a and 802.11b standards. Atheros is also shipping in volume the market's only second-generation 802.11a WLAN chipset, the AR5001A. Atheros achieved the financial milestone by shipping nearly a million chipsets.

"Every Atheros employee has contributed to the success of our company," said Rich Redelfs, president and chief executive officer of Atheros. "We are honored to be receiving this award from the FSA based on our financial merits and business execution. Our growth path is clear as we continue to bring to market the most advanced wireless local area network solutions."

Other Awards and Recognition

Atheros also was recently distinguished by receiving an Investors Choice Award from Technologic Partners as one of the most promising emerging semiconductor companies at the MicroVentures conference. Among the company's other awards and recognitions this year, Atheros was named to the Red Herring 100 and received the Grand Prize Best of Interop award at NetWorld+Interop 2002.

About the Fabless Semiconductor Association

In 1994, industry leaders incorporated the FSA (www.fsa.org) to achieve a more optimal balance between wafer demand and capacity. FSA members represent fabless companies, integrated device manufacturers, foundry providers, packaging/assembly houses, electronic design automation companies, investment bankers, venture capitalists, intellectual property providers and other companies.

The organization encourages the relationship between semiconductor companies and suppliers; facilitates business partnerships; creates awareness of the fabless/outsourced business model; disseminates industry data; and fosters standards and policies.

The FSA's vision is that by 2010 half of all integrated circuit revenue will come from fabless/outsourced operations.

About Atheros Communications, Inc.

Atheros Communications is the leading developer of networking technologies for secure, high-performance wireless local area networks. As the industry innovator and market-share leader in wireless OFDM technology compliant with the IEEE 802.11 specifications, Atheros is driving transparent connections among electronic devices in the office, home and on the road. Atheros technology is being used by many of the world's leading wireless equipment manufacturers including Accton, Actiontec, Acrowave Systems, AirVast Technology, ALPS, Ambit, Askey, ASUS, BenQ, Contec, CyberTAN, Dacom, Delta Networks, D-Link, Gemtek, Gigabyte Technology, Global Sun Tech, ICOM, Intel, Intermec, I-O Data, Linksys, NEC, NETGEAR, Philips, Proxim, Samsung, Senao, SMC Networks, Sony, Symbol, TDK, TECOM, USI, W2 Networks, Wistron NeWeb, Z-Com and others. For more information, visit www.atheros.com or send email to [e-mail].

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