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Atheros Awarded U.S. Department of Energy Grant to Develop Low-Power, Smart Grid Solutions with its AMP™ Powerline Technology

Atheros receives $4.5 million grant to develop technology for smart grid applications based on the HomePlug Green PHY Specification and interoperable with IEEE 1901

SANTA CLARA, Calif., June 15, 2010 — Atheros Communications, Inc. (NASDAQ: ATHR), a global leader in innovative technologies for wireless and wired communications, today announced that it has executed an agreement with the U.S. Department of Energy (DoE) under which it will receive up to $4.5 million in grant funding to develop powerline chips designed to provide two-way data communications over existing AC wiring, a vital element for Smart Grid applications.  The chips – based on the Green PHY specification now approved and published by the HomePlug® Powerline Alliance – will meet the low-power, high-reliability requirements of the utilities industry and comply with the IEEE 1901 global networking standard.

Two-way data communications among smart meters and in-home systems and appliances (such as air conditioning, water heaters, pool pumps, and washers and dryers) over powerline-based Home Area Networks allows home owners to monitor and control their electricity consumption and take advantage of “time-of-day” pricing incentives to lower energy costs.  Atheros’ Green PHY-based powerline technology also enables utilities to better manage the overall electric grid for increased reliability and efficiency through new capabilities such as load shaping, demand response, distributed generation and fault location and isolation. 

Facts/Highlights:

  • The grant is made under the U.S. Smart Grid Investment Grant (SGIG) program, a national program established to accelerate the manufacture, purchase and installation of existing and emergent Smart Grid technologies; especially those that can be applied in innovative ways within the existing electricity delivery system to provide integrated and economically-feasible solutions.  Atheros, the industry leader in powerline technology, is the only semiconductor company chosen to receive SGIG funding.

  • Atheros will match the initial $4.5 million investment to develop the industry’s first HomePlug Green PHY-based chip. The solution will feature dramatically lower power consumption (75% power reduction over current HomePlug AV solutions), robust coverage, and the extended temperature range needed for outdoor meters.  With scalable data rates from 250 Kbps to 10 Mbps, the Atheros chip will enable communications across existing electrical wiring including 120/240 VAC or 24 VAC low-voltage wiring to thermostats.

  • Atheros was the first to introduce HomePlug powerline solutions with the extended temperature range necessary for outdoor temperature extremes faced by smart meters.  Atheros’ powerline technology is now used in several brands of deployed smart meters and is in design in a variety of new meters.  Atheros has developed UART serial communications interfaces for its current HomePlug devices and a PL10 UART Smart Grid Enablement Kit to allow Green PHY prototype testing by companies designing smart meters, smart appliances, programmable communicating thermostats, electric vehicle and charging stations, ZigBee bridges, remote metering devices, solar panels and other energy-related applications.

  • Atheros is a key contributor to HomePlug’s Green PHY specification, which becomes an integral part of an ecosystem of interoperable powerline technologies built upon the widely deployed HomePlug AV and IEEE 1901 global standards. This ecosystem will enable communications between the home’s Smart Grid-enabled systems and appliances and the home’s digital network, enabling a host of new applications for the consumer as well as utility companies.

Supporting Quotes:

  • “This investment will help accelerate our efforts to develop a portfolio of Green PHY products that is based on carrier- and consumer-proven AMP powerline technology, already in use by tens of millions of households in most major geographies,” said Todd Antes, vice president of marketing, digital home of Atheros Communications, Inc.  “By meeting HomePlug’s Green PHY specification, our Green PHY-based solutions will be able to interoperate with the large installed base of HomePlug AV devices and future IEEE 1901-based products.”

  • In the June 2009 announcement of the U.S. Department of Energy’s intention to invest $3.9 billion in Smart Grid technologies, Energy Secretary Dr. Steven Chu said, “These investments will be used to develop a smart, strong and secure electrical grid that will help integrate renewable resources onto the grid, deliver power more reliably and effectively with less environmental impact, and create new jobs across the country.  By investing in updating the grid now, we will lower utility bills for American families and businesses, lessen our dependence on oil, and help advance a clean energy future for the nation.”

Additional Resources:

About Atheros Communications, Inc.
Atheros Communications is a global leader in innovative technologies for wireless and wired communications. Atheros combines its wireless and networking systems expertise with high-performance radio frequency (RF), mixed signal and digital semiconductor design skills to provide highly integrated chipsets that are manufactured on low-cost, standard complementary metal-oxide semiconductor (CMOS) processes. Atheros technology is used by a broad base of leading customers, including personal computer, networking equipment and consumer device manufacturers. For more information, please visit http://www.atheros.com or send an email to info@atheros.com.

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Atheros, the Atheros logo, and AMP are trademarks of Atheros Communications, Inc.  HomePlug is a registered trademark of the HomePlug Powerline Alliance.  All other trademarks mentioned in this document are the sole property of their respective owners.

NOTE ON FORWARD-LOOKING STATEMENTS:
Except for the historical information contained herein, the matters set forth in this press release, including the anticipated development of the HomePlug Green PHY specification, products based on the HomePlug Green PHY specification, and other powerline solutions that may be developed in connection with the Department of Energy grant, the features, benefits and performance of these products and solutions,  and the anticipated amount of the funding from the Department of Energy as well as the amount of Atheros’ matching funding for development of the Green PHY-based powerline solutions, 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, difficulties in the development of new and enhanced products, regulatory changes that may affect the smart grid market generally or the Department of Energy grant specifically, general economic conditions, the effects of competition, technological challenges and changes in industry standards, and the risks detailed in Atheros' Annual Report on Form 10-K for the year ended December 31, 2009 and 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.


For press inquires contact:: John Allen, 407-428-2815, john.allen@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.

Press Release