Atheros Ships 500 Millionth Wi-Fi® Chipset

SANTA CLARA, Calif – July 19, 2010 — Atheros Communications, Inc. (NASDAQ: ATHR), a global leader in innovative technologies for wireless and wired communications, today announced that it passed a significant milestone during the second quarter of 2010, by shipping its 500 millionth Wi-Fi chipset. This milestone demonstrates Atheros’ continued leadership in one of the fastest-growing segments of the semiconductor market and highlights the company’s ability to scale its operations to serve multiple high volume markets. According to iSuppli, the wireless LAN (WLAN) semiconductor market quadrupled from 2003 to 2009 and will nearly triple again to reach $8.8 billion in 2014. As a leading supplier of Wi-Fi® technology, Atheros is capitalizing on this tremendous growth opportunity by exceeding customers’ expectations with unmatched performance, integration and innovative features.   

In addition to its extraordinary growth in WLAN, Atheros has also expanded its connectivity portfolio with Bluetooth®, Ethernet, GPS, Powerline and broadband access technologies, which enable Atheros to deliver unique hybrid networking solutions that enhance and simplify the user experience. The availability of full-featured and cost-effective solutions from Atheros is helping to fuel the rapid adoption of connectivity technologies in a variety of devices, including PCs, mobile phones, networking equipment and consumer electronics products. By connecting more devices in the home and office, Atheros enables people to move content from ‘there’ to ‘here’ in a way that is simple and transparent to the user.

Highlights:

• Atheros has been instrumental in the evolution of Wi-Fi from a PC networking technology to one that is used in a growing number of products that keep people connected, informed and entertained. Its innovative WLAN solutions now enable a wide range of wireless devices and cutting-edge applications for consumers and enterprises.

• In the networking market:  As the number of wireless devices continues to grow, so does demand for powerful network infrastructure. Atheros’ 802.11n chipsets are among the most widely adopted solutions for retail networking equipment, residential gateways and enterprise networking systems. They provide robust performance and reliable coverage to support additional wireless users and more demanding applications in the home and enterprise.

• In the PC market:  Atheros’ 802.11n solutions are used by the world’s top 10 PC manufacturers, providing the reliable wireless connections that enable PC users to access the Internet, media content, social networks and other information from virtually any home, office or public hotspot. Atheros offers the industry’s most popular 1-stream 11n solution for netbooks and notebooks, as well as 2-stream and 3-stream 11n products that deliver greater wireless bandwidth and coverage.

• In the mobile market:  According to the Federal Communications Commission (FCC), there will be a 40-fold increase in mobile Internet demand over the next five years. To alleviate the burden of increasing data and media traffic from cellular networks, Wi-Fi is becoming a must-have feature for mobile devices. Atheros offers the world’s smallest, lowest power and highest performance mobile WLAN solutions, which have been designed into over 100 mobile designs, including mobile phones, eBooks, tablets, handheld gaming devices and other portable electronics.
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  Atheros is also fueling the proliferation of Wi-Fi into other devices that benefit from simple and robust connectivity without cables or cords. Its high-performance WLAN solutions are now being used to move content between consumer electronics, such as televisions, Blu-ray players, gaming consoles, home theater systems and set-top boxes. Atheros expects that Wi-Fi will soon be an integral part of the emerging smart grid market.

Supporting Quotes:

• “As wireless technology evolves at a breakneck pace, Atheros continues to succeed by maintaining a laser focus on what customers and consumers want – fast, simple and reliable connectivity,” said Craig Barratt, president and chief executive officer of Atheros Communications. “We have enjoyed tremendous success over the past 10+ years and will continue to expand our product portfolio to drive connectivity into a plethora of new devices and markets.”

• “With its long-standing commitment to interoperability and participation in Wi-Fi Alliance program development and certification, Atheros has contributed greatly to the advancement, success and proliferation of Wi-Fi technology,” said Edgar Figueroa, chief executive officer of the Wi-Fi Alliance. “With substantial growth and technological innovation still ahead, Atheros will continue to make a strong contribution to continued expansion of Wi-Fi technology worldwide.”

Except for the historical information contained herein, the matters set forth in this press release, including Atheros’ leadership position and its ability to scale its operations, the projected growth of the WLAN semiconductor market, the anticipated adoption of connectivity technologies in a variety of devices, the projected increase in mobile Internet demand , the expected integration of WLAN as part of the emerging smart grid market, the opportunities and prospects of Atheros resulting from these market trends, and Atheros’ plans to continue to expand its product portfolio , 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, whether Atheros is able to grow its business and develop and provide products to take advantage of the expected growth in the WLAN markets, difficulties in the development of new and enhanced products, general economic conditions, the effects of competition and technological change, and the risks detailed in Atheros' Annual Report on Form 10-K for the year ended December 31, 2009and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2010, 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 iSuppli and the FCC is reliable, we have not independently verified this data. iSuppli and the FCC generally indicate that they have obtained their information from sources believed to be reliable, but do not guarantee the accuracy and completeness of the information.

For press inquires contact:: Molly Mulloy, 408-830-5850, molly.mulloy@atheros.com, or Greg Wood, A&R Edelman for Atheros , 650-762-2838, gwood@ar-edelman.com

For analyst inquires contact: David Allen, 408-830-5762, david.allen@atheros.com.

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