AMCC Accelerates Delivery of the Industry's High-Density CES Offering; End-to-End Converged Network Solution Validated with Zarlink's CES Access Device.

Combined CES Technologies from AMCC and Zarlink Enable Efficient, Mixed Traffic, and Highly Scalable and Dense Solutions, Facilitating the Migration from Legacy to Packet Networks

SUNNYVALE, Calif. -- Applied Micro Circuits Corp. (AMCC) (NASDAQ:AMCC) today announced the results of successful interoperability testing between the company's Circuit Emulation Services-over-Packet (CES) technology and Zarlink[TM] Semiconductor's ZL[TM] 5011x family of CES access solutions. The combination of the highest-density CES device on the market from AMCC and Zarlink's proven CES expertise will uniquely enable system vendors and carriers to build efficient, scalable (up to multiple OC-3 / OC-12) solutions for legacy T1/E1 and revenue-driven applications. The success of this collaboration is attributed to a focus on real-world network measurements and compliance with SAToP and G.8261 standards. As a result, AMCC and Zarlink are able to provide accurate technical results to customers for next-generation system designs.

"By combining our companies' CES technologies and leveraging AMCC's long-established networking expertise, we are providing our customers with the best solutions for all of their system design needs," said Peter Burke, senior vice president and general manager, Network Communications, Zarlink Semiconductor. "The demonstrated interoperability of our technologies gives customers the benefit of a complete converged end-to-end network solution while still using best-in-class components and technologies at each stage."

AMCC's CES technology delivers the highest density levels on the market today, representing a multi-generational leap in integration as well as real estate and power savings. AMCC's CES solution leverages the company's successful MISSION[TM] and MISSION[TM] Access chipsets, as well as AMCC's expertise and leadership position in the packet processing market. Furthermore, AMCC's ability to mix CES and MSP data traffic in the same solution (MLPP, PPP, IMA), enables customers to reduce overall system design costs and achieve real convergence of legacy T1/E1s via IP networks.

Collaborative work on these converged network solutions allows customers to easily scale their systems to meet emerging design requirements by utilizing the same core of AMCC hardware and software for OC-3, 2xOC-3, 4xOC-3 and OC-12 data rates. Densities beyond OC-12 can be achieved by adding OC-12 "slices" that require a significantly lower chip count, real estate and power budget, thereby driving down development costs for customers.

"By leveraging our successful MISSION and MISSION Access chipsets, we continue to enable the convergence of data and TDM/voice over the same data connection and support the development of more flexible line cards," said Sam Fuller, vice president of marketing for AMCC. "Networked systems demand complete solutions that are capable of delivering advanced services while providing backward compatibility for the existing infrastructure. AMCC delivers on all fronts, while supplying the CES industry with the highest density solution on the market."

Since system-level features have been proven during the testing demonstration, device-interconnect debug is minimized, which translates into overall reduced time-to-market. The validation of AMCC's SAToP functionality and system configuration provides flexibility for customers to transport CES traffic through AMCC's platform.

Availability

AMCC's CES device is currently alpha sampling with general availability beginning in Q1 2007. An AMCC--Zarlink CES interoperability testing report is available for qualified customers. Zarlink's complete platform of high- and low-density CESoP devices is currently available; for details visit http://cesop.zarlink.com/.

About AMCC

AMCC is a global leader in network and embedded PowerPC[TM] processing, optical transport and storage solutions. Our products enable the development of converged IP-based networks offering high-speed secure data, high-definition video and high-quality voice for carrier, metropolitan, access and enterprise applications. AMCC provides networking equipment vendors with industry-leading communications processing, Ethernet, SONET and switch fabric solutions. AMCC is also the leading vendor of high-port count SATA RAID controllers enabling low-cost, high-performance, high-capacity storage. AMCC's corporate headquarters are located in Sunnyvale, California. Sales and engineering offices are located throughout the world. For further information regarding AMCC, please visit our web site at http://www.amcc.com.

About Zarlink

For over 30 years, Zarlink Semiconductor has delivered semiconductor solutions that drive the capabilities of voice, enterprise, broadband and wireless communications. The Company's success is built on its technology strengths including voice and data networks, optoelectronics and ultra low-power communications. For more information, visit www.zarlink.com.

Forward Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as expects, anticipates, plans, believes, estimates, will or words of similar meaning. Such forward-looking statements, including statements relating to the products discussed in this press release, are subject to a number of risks and uncertainties, including the risk that the products may not be successfully or timely developed, completed or manufactured or achieve market acceptance, risks relating to general economic conditions, as well as the risks and uncertainties set forth in the Company's Annual Report on Form 10-K, and in the Company's other SEC filings. 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 press release are made as of the date hereof and AMCC does not assume any obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise.

AMCC IS A REGISTERED TRADEMARK OF APPLIED MICRO CIRCUITS CORPORATION. THE POWERPC NAME AND LOGO ARE REGISTERED TRADEMARKS OF IBM CORPORATION AND USED UNDER LICENSE THEREFROM. ALL OTHER TRADEMARKS ARE THE PROPERTY OF THEIR RESPECTIVE OWNERS.