AMCC Leverages SONET/SDH Design Expertise to Deliver State-of-the-Art PHY Solutions for Wide Customer Base; Quad-Channel CDR and Quad-Channel Transceiver with Framing Capabilities Meet Customer RoHS Compliance Requirements.

SUNNYVALE, Calif. -- Applied Micro Circuits Corp. (AMCC) (NASDAQ:AMCC) today announced the expansion of its SONET/SDH OC-3/OC-12 offering with the S1220 quad clock and data recovery unit (CDR) and the S1221 8-bit quad transceiver. Built upon the company's proven SONET/SDH design capabilities, the S1220 and S1221 target SONET/SDH line cards and test equipment.

The S1220 CDR and S1221 transceiver offer a high level of integration, including optional framing capabilities for the S1221, and can be used as better integrated replacements for customers redesigning their systems or requiring a wider range of capabilities without external components. Both devices are offered in lead-free versions enabling customers to comply with requirements established by the Restriction of Hazardous Substances in Electrical and Electronic Equipment (RoHS) directive.

"The need for higher levels of integration while maintaining robust performance are at the forefront of our customers' designs," said Sam Fuller, vice president of marketing at AMCC. "The delivery of these devices demonstrates our continued leadership and commitment to the OC-3/OC-12 PHY market. These devices are designed to meet the demands of a wide range of customers from established OEMs to start-up companies."

Featuring an enhanced package design, the S1220 and S1221 provide greater functionality and flexibility for the price, translating into maximized ROI for customers. The high level of integration, outstanding performance and low jitter of 3 mUI make the S1220 and S1221 devices that deliver ease-of-use and the increased system margin customers require today.

Availability

The S1220 and S1221 build off of AMCC's previously introduced S1212 and S1213 devices, respectively, and provide backward compatibility, allowing an easy migration path to next-generation devices. Packaged in a 196-pin PBGA, the S1220 device offers a small 15 x 15 mm2 footprint, while the S1221 is packaged in a 17 x 17 mm2 255-pin PBGA. Both the S1220 and S1221 are currently sampling to development partners with volume production scheduled to begin in the second half of 2006.

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, 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.

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.