Atheros Communications Licenses Cores From ARM For Wireless Networks

SUNNYVALE, Calif., AND CAMBRIDGE, UK - July 6, 2004 - Atheros Communications, Inc. (Nasdaq: ATHR), a leading developer of advanced wireless LAN (WLAN) chipsets, and ARM [(LSE: ARM); (Nasdaq: ARMHY)], the industry's leading provider of 16/32-bit embedded RISC microprocessor solutions, announced today that Atheros has licensed the ARM926EJ-S™ processor and the ARM946E-S™ processor. The ARM946E-S microprocessor core's flexible memory system enables hardware to be tailored to an embedded application to improve the overall efficiency of a chip set and the Jazelle® technology-enabled ARM926EJ-S microprocessor core accelerates the speed of Java applications.

Wireless networking is expected to be the basis for many applications such as voice communications, home audio/visual entertainment, and other networking areas where the ARM® processor performance, flexibility, and industry-leading support will assist Atheros in achieving rapid time-to-market.  Atheros will take advantage of licensing the world's most popular 32-bit architecture in its next-generation systems where 802.11 wireless technologies will play an important role. 

"With the 802.11 wireless sector expected to continue growing rapidly over the next few years, it is the strength of our technology that will help us capitalize on this opportunity," said Colin Macnab, Vice President of Marketing and Business Development, Atheros Communications. "ARM microprocessor cores offer us a strong and highly competitive road map to enable Atheros to maintain our market-leading position."

ARM has a proven architecture supported by a wide range of integration tools and extensive history of successfully working with chip vendors to accelerate designs and products to market.  ARM leads the 32-bit CPU market, and Atheros will work to leverage this leadership into existing and new 801.11 technology-based applications. 

"The 802.11 wireless market is one of many high-growth sectors that we are targeting," said Mike Inglis, EVP Marketing, ARM.  "We are offering OEMs in this sector a commitment to help meet the increasing need for reduced cost and size, and power-efficient products. This partnership with Atheros will enable them to deliver industry-leading products to the wireless networking market and we look forward to developing our relationship further."

The ARM 926EJ-S macrocell features a 32-bit RISC CPU with ARM Jazelle Java bytecode acceleration embedded within the core. The ARM946E-S core includes an ARM9E-S™ CPU with flexible instruction caches, data caches and TCM (tightly coupled memory) interfaces. The size of these caches is reconfigurable, as are the memories of the instruction and data TCM, which means that hardware can be tailored to an embedded application. Both cores implement the ARMv5TEJ instruction set, which includes 16-bit fixed point DSP instructions to enhance the performance of many signal processing algorithms.

About ARM

ARM is the industry's leading provider of 16/32-bit embedded RISC microprocessor solutions. The company licenses its high-performance, low-cost, power-efficient RISC processors, peripherals, and system-chip designs to leading international electronics companies. ARM also provides comprehensive support required in developing a complete system. ARM's microprocessor cores are rapidly becoming a volume RISC standard in such markets as portable communications, hand-held computing, multimedia digital consumer and embedded solutions. More information on ARM is available at http://www.arm.com.

About Atheros Communications, Inc.

Atheros Communications is a leading developer of semiconductor system solutions for wireless communications products. Atheros combines its wireless systems expertise with high-performance radio frequency, mixed signal and digital semiconductor design skills to provide highly integrated chipsets that are manufacturable on low-cost, standard complementary metal-oxide semiconductor (CMOS) processes. Atheros technology is being used by a broad base of leading customers, including personal computer and networking equipment manufacturers. For more information, visit www.atheros.com.

ENDS

ARM and Jazelle are registered trademarks of ARM Limited. ARM926EJ-S, ARM946E-S and ARM9E-S are trademarks of ARM Limited.  All other brands or product names are the property of their respective holders. "ARM" is used to represent ARM Holdings plc [(LSE: ARM); (Nasdaq: ARMHY)]; its operating company ARM Limited; and the regional subsidiaries ARM INC.; ARM KK; ARM Korea Ltd.; ARM Taiwan; ARM France SAS; ARM Consulting (Shanghai) Co. Ltd.; and ARM Belgium N.V.

Forward-Looking Statements

Except for the historical information contained herein, the matters set forth in this press release, including but not limited to the license by Atheros of ARM's processors and the partnership between Atheros and ARM; Atheros' ability to develop products in a timely manner using ARM's processors; the growth of the wireless sector, the features, performance, capabilities and benefits of Atheros' products using ARM processors; and statements regarding Atheros' future market position, 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; Atheros' ability to market its products; whether products using the ARM processors will be developed and available to ship in a timely manner, whether the market for wireless LAN technology continues to grow, and other risks detailed in Atheros' Quarterly Report on Form 10-Q for the quarter ended March 31, 2004 as filed with the SEC, and from time to time 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.

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