AMCC Remains No. 1 Worldwide Vendor of Merchant Switch Fabrics, Reports Market Research Firm In-Stat/MDR.

SAN DIEGO -- AMCC Continues Switch Fabric Market Leadership with Sixth-Generation PRS Solutions and Production-Ready Cyclone Solution

Applied Micro Circuits Corporation (AMCC) (NASDAQ:AMCC) today announced that market research firm In-Stat again ranked AMCC No. 1 worldwide in the sale of merchant switch fabrics (MSF) for 2003, with a double-digit lead over the next ranked switch fabric vendor.

"AMCC was able to maintain its lead in the nascent merchant switch fabric market while the market grew 20% from 2002," said Eric Mantion, Senior Analyst at In-Stat/MDR. "This impressive performance could be partially due to the solid technology in AMCC's PRS fabric and a foresight of vision, which led AMCC to be the first MSF vendor to use the revolutionary AdvancedTCA platform in its reference designs."

"Our proven track record of success addressing this market translates to the consistent development of high-performance, customer-oriented devices," said Mark Hunsicker, vice president of marketing for AMCC's Communications Group. "Tier One customers are responding to the scalability and `Pay As You Grow' emphasis we're delivering in our switch fabric solutions, and we expect our market leadership to continue as OEMs and service providers require more flexibility and functionality."

AMCC's switch fabric roadmap covers 5Gbps to multi-terabits, and consists of its market-leading PRS switch fabric family in its sixth generation of devices, and its nPX8005 Cyclone terabit switch fabric. On-time delivery, quality, outstanding support and triple S -- "Silicon, Software and Support" -- are the foundations of AMCC's success. The company's switch fabric portfolio is integrated into a broad customer base, addressing applications such as storage core director-class systems for high potential start-ups as well as established Tier-One system vendors such as Nortel, Alcatel, Huawei and Tellabs.

About AMCC

AMCC provides the essential building blocks for the processing, moving and storing of information worldwide. The company blends systems and software expertise with high-performance, high-bandwidth silicon integration to deliver silicon, hardware and software solutions for global wide area networks (WAN), embedded applications, storage area networks (SAN), and high-growth storage markets such as Serial ATA (SATA) RAID. AMCC's corporate headquarters are located in San Diego. 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

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 include statements relating to the markets, growth of markets and products, including the risk that the markets would not grow at the rates forecasted, and the demand for products would not materialize, and 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 for the year ended March 31, 2004, 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 any forward-looking statement.

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