AMCC and Silicon Image Announce Their Strategic Alliance on Network Attached Storage Solutions Based on AMCC Power Architecture Processors.

AMCC Processor and Silicon Image SATA Devices Combine to Optimize NAS Solutions

SUNNYVALE, Calif. -- Applied Micro Circuits Corporation (NASDAQ: AMCC), a global leader in embedded Power Architecture[TM] processing, optical transport and storage solutions, and Silicon Image, Inc. (NASDAQ: SIMG), a leader in semiconductors and intellectual property for the secure storage, distribution and presentation of high-definition content, today announced a working alliance to provide Network Attached Storage (NAS) reference designs based on AMCC Power Architecture based processors and Silicon Image's SATA controllers and port multipliers. AMCC and Silicon Image will provide the building blocks to deliver network storage solutions including AMCC's 405EX, 440SPe and the recently announced 460SX and Silicon Image's Sil 3132 and Sil3726.

AMCC provides a broad range of processors based on the Power Architecture, allowing system designers to implement compatible NAS products that scale from home to enterprise-class solutions. One example is the PowerPC 405EX, that combines the proven performance of the market leading PowerPC 405 processor core with a high performance suite of peripherals and interfaces. The PowerPC 405EX is ideal for applications such as SOHO and consumer NAS systems that require exceptional performance, small foot print, and low power. Another example is the PowerPC 460EX processor. With speeds of up to 1.0GHz as well as a robust peripheral set, the PowerPC 460EX is ideally suited to a wide range of SMB-class NAS applications. For high-performance enterprise-class solutions, the 440SPe and 460SX Storage processors provide best-in-class system performance, high-bandwidth I/O subsystems, and high throughput hardware accelerated RAID 5 and RAID 6 functionality.

"We are pleased to announce our strategic alliance with Silicon Image," said Charlie Ashton, Director of Enablement at AMCC. "The products from our two companies are highly synergistic and complementary, so we are confident that our NAS customers will benefit from the results of this close cooperation, such as optimized reference designs."

AMCC and Silicon Image are working together to define and showcase reference designs optimized for specific NAS applications. Customers will be able to use these proven, baseline designs with high confidence that their end products will be optimized for the applicable market segments.

"We are delighted to be working with AMCC to provide advanced solutions for the rapidly growing NAS market place," said Alex Chervet, director of marketing at Silicon Image. "The combination of Silicon Image's enterprise class port multipliers & controllers and AMCC's market-leading processors provide our mutual customers a quick way to bring proven ultra-high performance designs to market."

Building on a proven architecture, Silicon Image's semiconductors and intellectual property provide the flexibility in system design that allows customers to architect industry-leading solutions for the home to enterprise NAS markets. Silicon Image's SiI 3132[TM] is a single-chip, one-lane PCI Express to 2-port Serial ATA (SATA) II host controller that provides server-class performance. The SiI3132 product supports all Serial ATA II features, including FIS based switching and out of order NCQ data delivery. Silicon Image's SiI3726 is a 1-to-5 Serial ATA (SATA) Port Multiplier designed to provide a high-performance link between a single SATA host port and five SATA device ports. The SiI3726 product gives system designers or end users the flexibility to choose 1.5 Gbps or 3 Gbps SATA hard drives.

About AMCC

AMCC provides leadership semiconductor solutions to process, transport, and store digital information for the world's wired and wireless networks. As a leading supplier of Power Architecture[TM] based processors and with world-class expertise in SONET and Ethernet protocol processing, PHY technology, Storage processors and RAID controllers our products are the foundation of the IP Communications Revolution. AMCC's 3ware[R] SAS and SATA RAID controllers deliver cost-effective, high-performance, high-capacity storage for enterprises and consumers worldwide in applications like disk-to-disk backup, near-line storage, network-attached storage (NAS), video, and high-performance computing. For further information regarding AMCC, please visit our website 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.

About Silicon Image

Silicon Image, Inc. is a global leader in driving the architecture and semiconductor implementation for the secure storage, distribution and presentation of high-definition content in the consumer electronics, personal computing, and mobile device markets. With a rich history of technology innovation that includes creating industry standards such as SATA, DVI and HDMI, Silicon Image partners with the world's leading entertainment creators and electronics manufacturers to deliver digital HD content to consumers anytime, anywhere, on any device. Silicon Image is also a leading provider of semiconductor intellectual property solutions for high-definition multimedia and data storage applications. Additionally, Simplay Labs, LLC, a wholly-owned subsidiary of Silicon Image, offers robust testing tools, technologies, support services, consulting and product certification to electronics manufacturers to maximize performance, interoperability and ensure the highest-quality HD experience to consumers. With engineering, sales and customer support facilities located throughout North America, Asia and Europe, Silicon Image (NASDAQ: SIMG) is globally headquartered in Sunnyvale, California. For more information, please visit www.siliconimage.com.

Forward-looking Statements

This news release contains forward-looking statements within the meaning of federal securities laws and regulations including, but not limited to, statements regarding the performance and anticipated benefits of Silicon Image's products and the benefits to intended customers of the collaboration between Silicon Image and AMCC. These forward-looking statements involve risks and uncertainties, including those described from time to time in Silicon Image's filings with the Securities and Exchange Commission (SEC), that could cause the actual results to differ materially from those anticipated by these forward-looking statements. The forward-looking statements included in this press release are made only as of the date of this press release; and Silicon Image assumes no obligation to update any forward-looking statement. Additional information concerning risks and uncertainties that could cause results to differ can be found in the Silicon Image's filings with the Securities and Exchange Commission, including its most recent periodic reports on Form 10-K and Form 10-Q.

AMCC and 3ware are registered trademarks of APPLIED MICRO CIRCUITS CORPORATION. Power Architecture is a trademark licensed by Power.org. All other trademarks are property of their respective owners.

Silicon Image, the Silicon Image logo and Simplay HD are trademarks, registered trademarks or service marks of Silicon Image, Inc. in the United States and/or other countries. HDMI is a trademark or registered trademark of HDMI Licensing, LLC in the United States and/or other countries. All other trademarks and registered trademarks are the property of their respective owners in the Unites States and/or other countries.