SOURCE: Atheros

Atheros

August 31, 2010 16:01 ET

Atheros Completes Acquisition of Opulan

Expands Networking Portfolio to Deliver Gigabit Broadband Access and Robust Hybrid Connectivity for Homes and Multi-Dwelling Units

SAN JOSE, CA--(Marketwire - August 31, 2010) -  Atheros Communications, Inc. (NASDAQ: ATHR), a global leader in innovative technologies for wireless and wired communications, today announced that it has completed the acquisition of Opulan Technologies Corp., a privately held fabless semiconductor company specializing in solutions for passive optical networking (PON) and broadband access aggregation (MUX). The acquisition further expands Atheros' platform solutions for its networking customers worldwide, and enhances its strong R&D capabilities and customer relationships in Asia.

With the addition of Opulan's cutting-edge 1G/10G EPON (Ethernet PON) and MUX technologies, Atheros now provides carriers with an end-to-end (WAN-to-LAN) broadband architecture for the home and multi-dwelling unit (MDU). By tightly integrating the carrier transport mechanisms with its high-performance Gigabit Ethernet solutions, Atheros offers a carrier-class fiber-to-the-home (FTTH) platform that delivers Gigabit optical broadband access from the central office to the gateway, and then intelligently routes the traffic within the home using Atheros' Ethernet, Wi-Fi®, Powerline and hybrid connectivity solutions.

According to Infonetics Research, the market for PON equipment will more than double between 2009 and 2014. The ramp in PON demand is being driven by the global upgrade of existing broadband infrastructure to support ever-increasing bandwidth needs for video delivery and content sharing from the network cloud into and around homes and MDUs.

In connection with the acquisition, Atheros paid approximately $72 million to acquire all of the outstanding shares of Opulan, and may pay additional cash to Opulan shareholders subject to the attainment of earn-out objectives applicable to the acquired business during a 12-month period following the closing date. The purchase price was paid in cash, with a portion placed into escrow pursuant to the terms of the acquisition agreement.

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 www.atheros.com or send an email to info@atheros.com.

Atheros, the Atheros logo and Opulan are trademarks of Atheros Communications, Inc. 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 benefits for Atheros of the acquisition of Opulan, the features, benefits and performance of Opulan's and Atheros' products, Atheros' plans, objectives, expectations and intentions with respect to the Opulan acquisition, and the anticipated growth of the PON market, 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 integration of acquired businesses, the risk that the benefits from the transaction may not be fully realized or may take longer to realize than expected, disruption from the transaction making it more difficult to maintain relationships with customers, employees or suppliers, the effects of competition and technological change, general economic conditions, 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 June 30, 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 Infonetics Research is reliable, we have not independently verified this data. Infonetics Research generally indicates that it has obtained its information from sources believed to be reliable, but does not guarantee the accuracy and completeness of the information.

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