AMCC Demonstrates SFP+ 10GBASE-LRM Solution With Avago Technologies.

Industry Leaders Show Power-Efficient and Longer Reach Connectivity Surpassing 10GBASE-T, XFP and X2 Solutions for Datacenter Applications

BRUSSELS, Belgium -- Applied Micro Circuits Corporation (NASDAQ:AMCC), a global leader in high-speed optical transport for datacenter and telecommunication applications, embedded Power Architecture[R] processing, and storage solutions today announced 10GBASE-LRM interoperability between its QT2025 10-Gigabit per second (Gbps) physical layer device (PHY) and Avago Technologies' SFP+ (small form-factor pluggable) optical modules. The first public demonstration between the two companies' technologies will be displayed AMCC's booth #602, Hall 9 at ECOC 2008, Europe's largest optical fiber communications conference, taking place in Brussels, Belgium, 21-25 September (Exhibition: 22-24).

"Supporting 10 Gbps over 220 meters of OM1/OM2/OM3 multimode fibers (MMF) in datacenter applications is one of the most challenging aspects of 10GBASE-LRM technology but AMCC's expertise in electronic dispersion compensation (EDC) and forward error correction (FEC) makes it possible to begin the full-scale characterization of the hardware," said Dr. I-Hsing Tan, the 10G SFP+ Business Development Manager for Avago Technologies. "This is a tremendous opportunity to show the market that 10GBASE-LRM SFP+ solutions are going to bring major improvements in port density, reach, power consumption and cost to the data center. Avago Technologies is pleased to be in a leadership position with AMCC in demonstrating the 10GBASE-LRM interoperability at ECOC."

AMCC's QT2025 is a fully integrated 10 Gbps transceiver with fully-adaptive EDC. It provides a high-performance interface between a MAC or a switch device and optical modules. The QT2025 is also capable of interfacing directly to SFP+ direct attach copper cabling and to 10GBASE-KR backplanes. AMCC's transport components allow system designers to offer the most cost-effective, high-performance, high-capacity delivery of enterprise traffic for 10-Gigabit Ethernet datacenter applications.

"The market for 10 Gbps connectivity solutions is expanding rapidly as more system designers seek to add higher performance links in data centers," said Aileen Arcilla, Senior Analyst with IDC. "The demonstration of interoperability provides yet another data point that 10 Gbps datacom traffic can be successfully transmitted over greater distances to meet the highly demanding 10GBASE-LRM specification. This marks another milestone for deploying 10G in the market."

Avago's 10 Gbps Ethernet SFP+ family of products, including SR, LR and LRM optical transceivers, brings new levels of speed and high-port density to next-generation networking equipment. The AFBR-707SDZ SFP+ 10GBASE-LRM transceiver allows 220 meter operation in all MMF link applications including OM1 and OM2 legacy fiber cables and new high bandwidth OM3 fiber cables.

"The interoperability of AMCC's QT2025 with Avago Technologies' market-leading SFP+ modules is showcasing that 10GBASE-LRM is much more power efficient than 10GBASE-T PHYs and more flexible than XFP or X2 modules," said Neal Neslusan , Director of Marketing at AMCC. "The 10 Gbps market is expanding rapidly and system designers are seeking higher densities for their applications as well as reduced power consumption. The interoperability with Avago Technologies demonstrates our continuing commitment to bring power efficiency, longer reach connectivity and completely validated solutions to market."

About AMCC

AMCC provides leadership semiconductor solutions to process, transport, and store digital information for the world's wired and wireless networks. As a leading supplier of Power Architecture[R] based processors and with world-class expertise in SONET and Ethernet protocol processing, PHY technology, Storage processors and RAID controllers, our products are the foundation of the IP Communications Revolution. AMCC's 3ware[R] SAS and SATA RAID controllers deliver cost-effective, high-performance, high-capacity storage for enterprises and consumers worldwide in applications like disk-to-disk backup, near-line storage, network-attached storage (NAS), video, and high-performance computing. For further information regarding AMCC, please visit our website 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 and 3ware are registered trademarks of APPLIED MICRO CIRCUITS CORPORATION. Power Architecture is a registered trademark licensed by Power.org. All other trademarks are property of their respective owners.