AMCC Delivers Highly Integrated, Security-Enabled System-on-Chip, Offering Low-Power and Low-Cost Benefits to Customers.

AMCC's PowerPC([R]) 440EPx Commences Sampling; Processor Provides High-Performance, Single-Chip Solution for Pervasive and General-Purpose Applications

SUNNYVALE, Calif. -- Applied Micro Circuits Corp. (AMCC) (NASDAQ:AMCC) today announced the general sample availability of the PowerPC([R]) 440EPx embedded processor, which provides customers with a highly integrated, low-cost, low-power System-on-Chip (SoC) solution. Delivering Gigabit Ethernet, security acceleration and USB support, the 440EPx targets pervasive applications including printing systems, industrial control, wireless LAN access points and other general embedded applications that require a highly integrated device delivering impressive performance and a full set of peripherals.

The 440EPx includes the AMCC Turbo Security Engine coprocessor developed specifically to offload and accelerate processing of standards-based security protocols such as IPSEC and SSL. The Turbo Security Engine makes the 440EPx an ideal solution for securing communications protocols over wired or wireless networks, for Virtual Private Network (VPN) gateway devices, and for secure internet-based transaction processing systems. The Turbo Security Engine is capable of achieving over 500 Mbps of security processing performance while still offering significant general purpose processing throughput.

AMCC's PowerPC 440EPx delivers impressive performance with typical full chip power dissipation still under five Watts, even at clock speeds of up to 667 MHz. The 440EPx includes a high-performance double precision Floating Point unit, dual Gigabit Ethernet interfaces and high-speed USB 2.0 Host and Device controllers with integrated on-chip PHY, eliminating the need for external components and reducing system costs. The 440EPx also features a 32/64-bit DDR I or DDR II SDRAM controller with optional ECC support, 16KB of on chip memory, a 32-bit PCI interface, as well as an extensive complement of general purpose interfaces.

"With the 440EPx, AMCC is delivering on its promise to provide customers with compelling performance and integration while maintaining the low price points and low power dissipation that our customers demand," said Sam Fuller, vice president of marketing at AMCC.

AMCC's PowerPC processors are supported by AMCC and more than 50 partners who provide a full range of software, boards and development tools necessary for manufacturers to develop products quickly and efficiently. For full details of the products and services available through the AMCC Partners Program, or to browse support available for a specific processor, please visit: http://www.amcc.com/Embedded/Partners/.

Pricing and Availability

The PowerPC 440EPx is currently in general sampling with volume production expected to commence in the fourth quarter of 2006. AMCC's 440EPx is packaged in a 35mm Thermally Enhanced EPGA and is available in RoHS-compliant versions. The distribution suggested resale pricing for the processor is $33.06 in quantities of 25K. For additional information, please contact your local AMCC sales office, representative or authorized AMCC Distributor. Contact information can be found at http://www.amcc.com/Sales/.

About AMCC

AMCC is a global leader in network and embedded PowerPC 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 network and 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, Calif. Sales and engineering offices are located throughout the world. For further information regarding AMCC, please visit our web site at http://www.amcc.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. All other trademarks are the property of their respective owners. PowerPC is a registered trademark of the International Business Machines Corporation.