Atheros Communications Acquires u-Nav Microelectronics Acquisition Expands Atheros Portfolio with GPS Technology



    SANTA CLARA, Calif., Dec. 13 /PRNewswire-FirstCall/ -- Atheros
 Communications, Inc. (Nasdaq:   ATHR), a leading developer of advanced
 wireless solutions, today announced that it has signed a definitive
 agreement to acquire the assets and certain liabilities of u-Nav
 Microelectronics, a privately held fabless semiconductor company
 specializing in global positioning system (GPS) chipsets and software that
 enable mobile location-based products and services. The acquisition of
 u-Nav immediately expands Atheros' growing product portfolio in mobile
 wireless communications which also includes mobile wireless LAN (WLAN),
 Bluetooth and PHS.
 
     With one of the world's most integrated designs for GPS, u-Nav's
 technology enables mobile device manufacturers to quickly and easily
 develop embedded GPS applications for the wireless handset, personal
 navigation device, personal computing, consumer and mobile telemetry
 markets. u-Nav's flagship product, the uN3010, is a single-chip GPS
 receiver that integrates the company's CMOS high-performance RFIC core with
 its third-generation baseband IC core. The uN3010 supports high-sensitivity
 GPS signal acquisition that exceeds industry standards. u-Nav's product
 portfolio includes single-die solutions, several baseband chips and RFICs,
 and complete GPS system software solutions providing signal acquisition,
 tracking, data extraction and GPS navigation.
 
     The addition of u-Nav's shipping GPS products and technologies to
 Atheros' Radio-on-Chip for Mobile (ROCm(TM)) portfolio enables the company
 to deliver high-performance, cost-efficient combinations of mobile
 solutions featuring the industry's leading WLAN, Bluetooth and GPS
 technologies. By aggregating these complimentary wireless technologies into
 complete, single-source solutions, Atheros will deliver greater value to
 its existing base of world-class customers, expand into new market segments
 and offer a greater share of the total bill of materials for mobile
 devices. Additionally, Atheros will provide optimized wireless coexistence,
 supporting multiple radios in a single device for local area networking,
 personal area networking and mobile location-based services.
 
     "Like Atheros, u-Nav leads the industry with highly integrated,
 leading-performance solutions and was among the first companies to deliver
 single-chip CMOS GPS," said Craig Barratt, president and chief executive
 officer of Atheros. "Their engineering team possesses significant RF design
 expertise on CMOS technology, which complements Atheros' design capability
 and culture. With u-Nav's GPS competency we will deliver an impressive set
 of wireless solutions that include Wi-Fi, Bluetooth and GPS, increasing the
 value we bring to our customers."
 
     The research firm, In-Stat, forecasts the number of GPS-enabled mobile
 devices to grow from 180 million units in 2007 to 720 million units in
 2011. This compound annual growth rate of more than 75 percent is driven by
 the increasing popularity among consumers of GPS services in wireless
 handsets and personal navigation devices, and the expansion of the
 capability into a wide array of consumer devices such as laptops, mobile
 gaming products and digital cameras.(1)
 
     "We are enthusiastic about joining Atheros. With its exemplary
 reputation for engineering best-in-class communications solutions, Atheros
 provides us with a great development environment and the opportunity to
 significantly expand the adoption of our GPS solutions," said Greg Winner,
 formerly chief executive officer of u-Nav, now General Manager of Atheros'
 GPS business unit. "Atheros' strong PC, networking and consumer products
 customer base provides an extensive channel in which to leverage u-Nav's
 GPS capabilities and to achieve synergies for delivering Wi-Fi, Bluetooth
 and GPS from a single, trusted vendor."
 
     With the acquisition of u-Nav, Atheros gains 54 employees located at
 u-Nav's Irvine, Calif., headquarters and its European engineering facility
 in Tampere, Finland. Upon closing the transaction, Atheros will also take
 assignment of the patent cross-license agreement already in place between
 u-Nav and SiRF Technology, Inc.
 
     The cash and stock transaction, currently valued at approximately $54
 million, includes $15.4 million in cash and 1.28 million shares of Atheros
 common stock and may include an additional consideration to shareholders if
 certain defined milestones are achieved. A portion of the consideration
 will be held in escrow for up to 12 months. Atheros may record a one-time
 charge for purchased in-process research and development expenses. The
 amount of that charge, if any, has not yet been determined. The boards of
 directors of both companies have approved the transaction. Completion of
 this transaction is subject to customary closing conditions and is expected
 to close in December 2007.
 
     About Atheros Communications, Inc.
 
     Atheros Communications is a leading developer of semiconductor system
 solutions for wireless and other network communications products. 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 email to info@atheros.com.
 
     Atheros, the Atheros logo, ROCm 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 u-Nav, product aggregation, future products and
 features and expansion into new markets 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, and the
 risks detailed in Atheros' Annual Report on Form 10-K for the year ended
 December 31, 2006 and its Quarterly Report on Form 10-Q for the quarter
 ended September 30, 2007, 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 In-Stat is reliable, we have not independently verified this data.
 In-Stat 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.
 
     (1) Source: In-Stat, "GPS Chips in Mobile Devices," October 2007
 
 
 

SOURCE Atheros Communications, Inc.

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