AMCC'S High-Performance Silicon Solution Set Selected by Alcatel for Use in New Core Router 7770 RCP.

Business Editors & High-Tech Writers

Fall ISPCON 2000

SAN DIEGO--(BUSINESS WIRE)--Nov. 9, 2000

AMCC's Set of Leading Framer and PHY Solutions Enables Faster

Time-to-Market for Optical Networking Customers

Applied Micro Circuits Corp. (AMCC)(Nasdaq:AMCC), the leader in high-bandwidth silicon connectivity for the world's optical networks, today announced that the company is providing a high-performance silicon solution set for Alcatel's new carrier-class core router 7770 RCP, recently announced at the ISPCON tradeshow and conference in San Jose, Calif.

Optimized for ease of interface and low power, AMCC's Rhine, Indus, Ganges, clock data recovery and mux/demux devices enabled Alcatel to build multiple line-cards on one device family supporting OC-3, OC-12, OC-48 and OC-192 rates. The joint development partnership between AMCC and Alcatel greatly enhanced the design and development of the channelized framer solutions, and provided a robust platform for Alcatel's carrier-class router devices.

"The AMCC framer family allowed the design team of the Alcatel 7770 RCP to develop a wide range of physical interfaces (OC-3 up to OC-192) based on one generic design which significantly reduces time-to-market. AMCC not only offers state-of-the-art chip sets, but is also committed to provide the best possible support," said Jan Van Tetering, chief engineer for the Alcatel 7770 RCP.

"This collaboration with Alcatel is proof-positive of the strong working relationship that our two companies have created," said John LoMedico, AMCC's vice president of marketing, digital products. "Our ability to design and deliver OC-48 and OC-192 solutions that are designed to enable engineers to build one line-card supporting many interfaces reduces the development effort and time-to-market pressures for our customers."

The Alcatel 7770 RCP is a next-generation IP core router, which combines high performance and scalability from 640 Gb/s up to 10 Tb/s and beyond, with a high reliability and hardware redundancy to deliver non-stop networking. It allows service providers to offer QoS and guaranteed Service Level Agreements through MPLS and an enhanced DiffServ implementation. Optical IP internetworking features include coordinated multi-layer restoration and MPLambdaS.

In addition to the Ganges, Indus and Rhine ICs, Alcatel will be utilizing AMCC's clock data recovery and mux/demux devices for their line cards including the S3029, the S3024 and the S3063/64, supporting OC-3, OC-12 and OC-48 rates respectively. Offering unparalleled integration, AMCC's framer family supports deeply channelized data rates from OC-12 through OC-192, while providing full-duplex mapping of ATM cells and packet-over-SONET (POS). Coupled with AMCC's multi-rate clock and data recovery and serialization/deserialization silicon, the robust solution set performs all necessary parallel-to-serial functions in conformance with SONET/SDH transmission standards.

Alcatel's core router 7770 RCP also features a separate interface dedicated to handle SONET Automatic Protection Switching (APS) for all line interface options. APS, the framework defined by SONET to enable equipment and line protection, is a critical feature for providing carrier-class service quality. By incorporating a dedicated APS port in hardware, AMCC's silicon solution set enables an efficient APS implementation in Alcatel's core router, the Alcatel 7770 RCP.

Availability

AMCC's Rhine, Ganges, Indus, S3029, S3024 and S3063/64 silicon solutions are currently in volume production. Alcatel's core router 7770 RCP will be generally available in May 2001.

About Alcatel

Alcatel builds next generation networks, delivering integrated end-to-end voice and data networking solutions to established and new carriers, as well as enterprises and consumers worldwide. With 120,000 employees and sales of $26 billion (EURO $23 billion) in 1999, Alcatel operates in more than 130 countries.

About AMCC

AMCC designs, develops, manufactures and markets high-performance, high-bandwidth silicon solutions for the world's optical networks. AMCC utilizes a combination of high-frequency analog, mixed-signal and digital design expertise coupled with system-level knowledge and multiple silicon process technologies to offer integrated circuit products that enable the transport of voice and data over the fiber optics networks. MMC Networks, a wholly-owned subsidiary of AMCC, is the market leader in providing total network processing platforms and services, enabling network and communications equipment vendors to rapidly develop scalable, feature-rich, cost-effective products. MMC's platforms include fully programmable, policy-enabled network processors, an open, extensive software architecture, high-capacity switching fabrics, and integrated traffic management capabilities, complemented by system design and consulting services. MMC platforms form the silicon heart of many Layer 2-Layer 7 WAN and LAN switches and routers, broadband, optical, Web switching, subscriber management and other communications platforms.

AMCC's corporate headquarters and wafer fabrication facilities are located in San Diego. Sales and consulting engineering offices are located throughout the world.

Forward-Looking Statement:

The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are subject to a number of risks and uncertainties, including the risks and uncertainties set forth in the "Factors That May Affect Future Results" detailed in the Company's Annual Report on Form 10-K for the year ended March 31, 2000, and in other filings of the Company and MMC Networks with the Securities and Exchange Commission. As a result of these risks and uncertainties, actual results may differ materially from these forward-looking statements. The forward-looking statements contained in this news release are made as of the date hereof and AMCC does not assume any obligation to update the reasons why actual results could differ materially from those projected in the forward-looking statements.

AMCC and MMC Networks are registered trademarks of Applied Micro Circuits Corp.