AMCC Offers Solution for Mobile Infrastructure Market; AMCC's nP3665 Integrated Network Processor and Traffic Manager Offers the Best Performing and Lowest Power Solution.

SUNNYVALE, Calif. -- Applied Micro Circuits Corp. (AMCC) (NASDAQ:AMCC) today announced the introduction of the nP3665, an industry-leading, high-performance OC-24/2GE integrated network processor and traffic manager. The nP3665 was developed for mobile infrastructure cell and packet processing applications including traffic aggregation, backhaul and transport network layer user-plane processing. The nP3665 is a low-cost derivative of AMCC's successful nP3700 integrated network processor and traffic manager family. In combination with AMCC's Amur channelized framer and the PowerPC 440GRx processor, the nP3665 provides a complete platform for mobile infrastructure data and control plane needs.

The nP3665 is designed to be deployed in Node B, RNC, SGSN, GGSN, and Media Gateway (MGW) systems. The np3665 features industry standard interfaces including Gigabit Ethernet, SPI-3, Utopia-L2 and application software specifically developed for mobile infrastructure applications. Offering very high processing performance at low power consumption (12 mW/MIPS), the nP3665 is an integral part of a complete platform for mobile processing including a production-ready application code and hardware development platform.

The nP3665 Traffic Manager is implemented in hardware for deterministic performance. The nP3665 utilizes a hierarchical scheduling architecture to provide multiple levels (flow, pipe, subport, and port) of bandwidth provisioning and per-subscriber guarantees. Minimum and maximum bandwidth control can be configured on multiple levels. The nP3665's fine-grained Traffic Manager allows for latency sensitive real-time traffic to be schedule before "best effort" data traffic on a per-port basis.

"The single-image programming model of the AMCC nP3665 simplifies for OEMs the writing and maintenance of network processing code," said Joseph Byrne, senior analyst at The Linley Group. "This latest generation device extends AMCC's family of code-compatible NPUs to address specifically the mobile infrastructure segment and demonstrates AMCC's commitment to extending its network processor line."

"Mobile infrastructure is a very important market to AMCC and the release of the nP3665 marks our continued expansion into the mobile space. Increasing bandwidth requirements driven by multimedia content, along with a transition to IP-based protocols, are driving the requirements for products like the nP3665. AMCC offers a complete solution for both control and data plane processing in mobile infrastructure," said Sam Fuller, vice president of marketing at AMCC. "As the world's leading supplier of network processors, AMCC has unparalleled expertise in the unique challenges of multi-protocol networks and in meeting stringent quality of service requirements, important factors in successful mobile infrastructure equipment."

In addition to the Amur framer/mapper, which terminates up to 1024 DS0 channels of packet or cell data, and the 440GRx family of PowerPC microprocessors, AMCC's platform for mobile infrastructure applications includes production-ready AAL2, AAL5, IPv4, and IPv6 data-plane application software; the nP3665 evaluation kit, which delivers a fully-functional system customers can use to begin software development before they have their final hardware; and a complete software development environment including a C-syntax programming environment and cycle-accurate simulator. The Amur and PowerPC 400GRx interface with the nP3665 over industry standard interfaces. For non-channelized applications, a range of framer devices is available from AMCC including the Tigris and Ohio framers. The nP3665 also interfaces with the 440GRx family of general-purpose microprocessors for control-plane processing.

Availability

The nP3665 is available in both commercial (0 degrees C to +70 degrees C) and industrial (-40 degrees C to +85 degrees C) temperature grades in a 1023 ball HFC-BGA package. The nP3665 is currently sampling with volume production scheduled to commence in the fourth quarter of 2006. For more information on the nP3665, including product briefs, photos and a whitepaper, visit www.amcc.com/nP3665.

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. 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.