AMCC Raises the Performance Bar With Entrance into the GPON Application Space and Expansion of SerDes Product Family; AMCC Leverages Proven SerDes Design Expertise to Move into the GPON Market and Deliver Telecom-Grade PHY Devices for Customers.

SUNNYVALE, Calif. -- Applied Micro Circuits Corporation (AMCC) (Nasdaq:AMCC) today announced its entrance into the Gigabit Passive Optical Network (GPON) market with the premiere of the S3157PBI G.984-compliant transceiver with Clock and Data Recovery (CDR). AMCC also announced the S3165PBI multi-rate (125 Mbps to 2.67Gbps) OC-48 transceiver, which builds off of the company's successful line of Serializer/Deserializer (SerDes) devices.

The S3157 is the first in a series of AMCC solutions that are targeted at the emerging GPON market. A key supplier of PHY solutions in the Ethernet Passive Optical Networks (EPON) application space, AMCC continues its commitment to providing customers with standard compliance, high performance, availability and application support with the introduction of the S3157. Designed for WAN applications, the S3165 is an addition to AMCC's family of multi-rate SerDes devices supporting 16-bit wide data interfaces. The S3165 delivers a decidedly integrated PHY solution to system vendors and the multi-rate functionality needed for optimum performance and design flexibility.

"Today, major OEM system vendors are working hard to prepare prototype systems and commence their first field trials. With the ability to interface easily with FPGA solutions, AMCC's S3157 features a 16-bit wide data bus that provides customers with the option to use a lower cost and lower I/O speed FPGA and the flexibility to easily meet their systems' design requirements," said Daryn Lau, senior vice president and general manager for AMCC's Integrated Communications Products Business Unit. "These recent introductions demonstrate AMCC's commitment to delivering state-of-the-art PHY solutions targeting emerging GPON and WAN applications. AMCC is focused on providing cost-effective and highly integrated devices for this rapidly growing market and will continue to offer customers additional products in the coming year."

The S3157 is G.984-compliant and supports transceiver burst mode applications. Packaged in a 15x15 mm squared 196-pin PBGA, the device features a small footprint and low power dissipation of 650 mW. The S3157 offers 16-bit parallel single-ended or differential LVDS I/Os with built-in termination resistors. The S3157 will easily interface with all standard FPGAs and ASICs.

The S3165's multi-rate functionality supports OC-48/24/12/3 with FEC, HDTV, D1, FC, 2FC, GE, DTV, ESCON data rates. Packaged in a 121-pin PBGA, the device offers a small footprint package and low power dissipation of 650 mW. The S3165 features 16-bit parallel single-ended or differential LVDS I/Os and built-in termination resistors. The S3165 builds off of AMCC's previously introduced S3065 transceiver and interfaces seamlessly with AMCC's Amazon, Rhine and Danube framer products, as well as FPGAs and customer ASIC solutions.

Availability

The S3157 and the S3165 are currently sampling and evaluation boards of the devices are also available. Volume production of both the S3157 and S3165 is scheduled for 1Q 2006. For technical information on the S3157, visit http://www.amcc.com/BestInClass/S3157. For technical information on the S3165, visit http://www.amcc.com/BestInClass/S3165. For a photo of the S3157, visit http://www.amcc.com/BestInClass/S3157/Photo/. For a photo of the S3165, visit http://www.amcc.com/BestInClass/S3165/Photo/.

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.