AMCC Offers Year-End $400 Price Reduction on Its Popular 3ware Sidecar Hardware RAID Solution, Enters Education Market With Deeper Discounts.

3ware Sidecar Ideal for Graphics, Pro Audio and Video in Macintosh[R] and PC Environments; Now Offered Direct From AMCC 

SUNNYVALE, Calif. -- Applied Micro Circuits Corporation (AMCC) (NASDAQ:AMCC) today announced a price reduction for its 3ware([R]) Sidecar desktop SATA II storage solution and a further reduction for education customers. The RAID system perfectly partners with PC and Apple[R] PCI Express workstations.

AMCC now offers the 3ware Sidecar for a manufacturer's suggested retail price (MSRP) of $895, a $400 reduction. Customers in the education field will receive an additional $100 off MSRP when they purchase the 3ware Sidecar on the 3ware Online Store at http://store.3ware.com.

"The 3ware Sidecar generated a lot of excitement this year and enjoyed consistently outstanding reviews, largely because of its unique ability to provide our customers very high performance RAID protection in a convenient, easy-to-use desktop box," said Scott Cleland, Director of Marketing for AMCC Storage. "We're offering these reductions to make enterprise-class RAID protection accessible to a wider audience which now includes students and home enthusiasts, many of whom have not considered using full-featured true hardware RAID because of the expense."

Maximum Performance, Maximum Data Protection

The 3ware Sidecar is an external, SATA II RAID system that includes everything a customer needs for multi-terabyte RAID protection, including a 4-bay chassis, the low-profile 3ware 9650SE PCI Express controller, high-speed Multi-lane([R]) cabling and supporting software; customers add their own choice of any SATA drives to the box, enabling a flexible, customized solution for capacity, performance and data protection. The xSATA system delivers speeds up to 4x faster than eSATA and up to 28x faster then USB solutions. Drives are hot-swappable. An available onboard battery backup unit (BBU) provides up to 72 hours of additional data protection in the case of a power failure.

Pricing and Availability

The 3ware Sidecar is available directly from AMCC on the 3ware online store and from its worldwide network of distributors, VARS and direct market resellers. Suggested list price for the 3ware Sidecar is $895, disk drives not included. Education customers may also take advantage of the additional $100 reduction when they buy directly from AMCC.

About AMCC

AMCC blends system hardware and software expertise to provide the essential building blocks for the processing, moving and storing of data worldwide. The #1 high-port count Serial ATA RAID controller line, AMCC's 3ware families of SAS and SATA RAID storage solutions deliver cost-effective, high-performance, high-capacity storage for enterprises and consumers worldwide in applications such as disk-to-disk backup, near-line storage, network-attached storage (NAS), video, and high-performance computing. The company is headquartered in Sunnyvale, California with offices throughout the world. For more information, visit http://store.3ware.com, http://www.3ware.com or 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, 3ware and Multi-lane are trademarks or registered trademarks of Applied Micro Circuits Corporation. Other trademarks are the property of their respective owners. Use of the term 'Sidecar' is made under agreement with Digital Tigers, Inc.