ONI Systems and AMCC Sign Strategic Development Agreement; MCC Adds Expertise in MAN Market; ONI Secures ``Lead Customer'' Access to New Key Components.

Business Editors and High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--Nov. 15, 2000

Applied Micro Circuits Corp. (AMCC(R)) (NASDAQ: AMCC), a leader in high-bandwidth silicon connectivity solutions for the world's optical networks, and ONI Systems(TM) Corp. (NASDAQ: ONIS), a leading provider of all-optical telecommunications equipment, Wednesday announced a multi-year strategic development and early access supply agreement. The contract provides ONI with early access to new components derived from the relationship, and encourages AMCC to utilize ONI's expertise in product requirements for the metropolitan area network (MAN) market.

AMCC's system-solution silicon approach focuses on SONET/SDH, ATM, Gigabit Ethernet and Fibre Channel, all of which require efficient transport across the all-optical layer delivered by ONI. This agreement was borne from the integration of AMCC's application specific standard products (ASSPs) into key features within ONI's ONLINE(TM) optical transport platform, including ONI's SONET/SDH Multiplexer(TM) product.

"AMCC has earned a role as an important partner by their commitment to our business, and this new agreement provides mutually beneficial extensions to that relationship," said Rusty Cumpston, executive vice president of Engineering and Operations for ONI Systems. "We will be working very closely with the AMCC team in defining and developing next generation products and the optical networking solutions our customers need in their networks."

"A key ingredient to being a leading innovator in providing system-oriented optical networking silicon solutions is to understand and master emerging markets better than our competitors do," said Brent Little, AMCC's vice president of marketing. "This relationship will advance collaboration on end market trends and requirements thus enabling us to specify, develop and market superior products to these markets first."

About ONI Systems

ONI Systems (NASDAQ: ONIS) develops, markets and sells all-optical networking equipment specifically designed to address bandwidth and service limitations of regional and metropolitan networks. Our products allow communications service providers to rapidly build high-capacity metro networks that are flexible, scalable and able to support multiple services on a single platform. Our products include the ONLINE11000(TM), the ONLINE9000(TM), and the ONLINE7000(TM) optical transport platforms and the SONET/SDH Multiplexer(TM) and Data Multiplexer(TM). The ONLINE(TM) optical transport platforms incorporate the OPTX(TM) operating system for wavelength and service management in optical networks and the OLMP(TM) optical link management protocol suite for internetworking between the optical transport and data or voice switching layers of the network. For more information about ONI Systems and its products, visit ONI Systems' Web site at www.oni.com.

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 the fiber optics networks. MMC Networks, a wholly owned subsidiary of AMCC, is the market leader in providing total network processing platforms and services, enabling network and communications equipment vendors to rapidly develop scalable, feature-rich, cost-effective products. MMC's platforms include fully programmable, policy-enabled network processors, an open, extensive software architecture, high-capacity switching fabrics, and integrated traffic management capabilities, complemented by system design and consulting services. MMC platforms form the silicon heart of many Layer 2-Layer 7 WAN and LAN switches and routers, broadband, optical, Web switching, subscriber management, and other communications platforms.

AMCC's corporate headquarters and wafer fabrication facilities are located in San Diego. Sales and consulting engineering offices are located throughout the world.

AMCC 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 including statements relating to new products derived from the relationship are subject to a number of risks and uncertainties, including the risk that such products would not be successfully developed or achieve market acceptance, as well as the other 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, 2000, and in other filings of the Company and MMC Networks 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 Corporation. ONI Systems, ONLINE, ONLINE11000, ONLINE9000, ONLINE7000, OPTX, OLMP, SONET/SDH Multiplexer and Data Multiplexer are trademarks or registered trademarks of ONI Systems Corp. All other trademarks are the property of their respective owners.