AMCC Promotes Doug Spreng to President and COO.

Business Editors and High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--July 13, 2001

Applied Micro Circuits Corp. (AMCC) (NASDAQ:AMCC) Friday announced the promotion of Doug Spreng from senior vice president of AMCC's Switching and Network Processing Group to president and chief operating officer of AMCC.

Spreng will work closely with CEO and Chairman of the Board Dave Rickey, who has served as AMCC's president and CEO since 1996. Jeff Cashen will assume Spreng's previous duties at AMCC's Switching and Network Processing Group as vice president and general manager.

"The dynamic nature of today's market makes this a very vital time for our company," said Rickey. "To succeed, we need to focus equally on the long-term strategic direction of the company and maintain strict operational efficiencies. Creating a COO position and promoting Doug enables us to better utilize his broad operational expertise and strong technical background. I will concentrate my efforts on the direction and focus of the company. I will be developing and driving the strategic vision for AMCC, in part by taking advantage of the Technology Office of the CEO, a collaborative forum of the most visionary and experienced technologists in the company. I will also work with Bill Bendush to remain in close contact with the financial community."

Bendush, AMCC's chief financial officer and senior vice president of finance and administration, will continue to report directly to Rickey.

The mandate of the newly formed Technology Office of the CEO is to continually sharpen the company's leadership edge by guiding the long-range technological direction of the company. The group comprises of AMCC's Chief Technology Officers, Dr. Gary Martin, Dr. Ken Yun and Alex Joffe, and Technology Fellow Bruce Coy.

Spreng joined AMCC in 2000 through the acquisition of MMC Networks, where he served as president since 1999. In January 2001, he assumed the role of senior vice president of AMCC's Switching and Network Processing Group while maintaining his role as president of MMC Networks. As president, Spreng was instrumental in managing MMC Networks through a complex transition and led the company through a major renewal of rapid growth.

Prior to joining MMC Networks, Spreng was executive vice president of the Client Access Business Unit at 3Com Corp., where he managed an eight-fold increase in highly profitable revenue over a seven-year time frame, establishing 3Com as the market leader in network interface cards. He was also president and COO of Cellnet Data Systems, a communications system company, and previously worked at Hewlett-Packard in various marketing, manufacturing and management capacities. Spreng holds a BSEE degree from MIT and an MBA from Harvard Business School.

"Dave has created an incredibly strong company and will continue to be the driving force of the AMCC organization," said Spreng. "I will focus my efforts on maximizing the company's overall operational efficiency and success, and work in concert with Dave to cement AMCC's leadership role the evolving intelligent optical network."

Cashen was previously vice president of sales for MMC Networks (now AMCC Switching & Network Processing Group). He came to MMC from Texas Instruments, where he held various senior sales positions in his 16 years with the company, and managed the Cisco Systems, Digital Equipment Corporation and Sun Microsystems accounts. Cashen received his BSEE degree in electrical engineering from Penn State University.

About AMCC

AMCC designs, develops, manufactures, and markets high-performance, high-bandwidth silicon solutions for the world's optical networks. AMCC utilizes a combination of high-frequency analog, mixed-signal and digital design expertise coupled with system-level knowledge and multiple silicon process technologies to offer integrated circuit products that enable the transport of voice and data over fiber optic networks. The company's system solution portfolio includes PMD, PHY, framer/mapper, network processor, traffic management and switch fabric devices that address the high-performance needs of the evolving intelligent optical network. AMCC's corporate headquarters and wafer fabrication facilities are located in San Diego. Sales and engineering offices are located throughout the world.

Forward Looking Statements

The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are subject to a number of risks and uncertainties, including the risks and uncertainties set forth in the "Factors That May Affect Future Results" detailed in the company's Annual Report on Form 10-K for the year ended March 31, 2001, and in other filings of the company with the Securities and Exchange Commission. 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 news release are made as of the date hereof and AMCC does not assume any obligation to update the reasons why actual results could differ materially from those projected in the forward-looking statements.

AMCC is a registered trademark of Applied Micro Circuits Corp. All other trademarks are the property of their respective owners.