PMC-Sierra's EPON Solution for Dasan Networks Fiber-To-The-Home Equipment Powers Korea Telecom's FTTH Deployment.

SANTA CLARA, Calif. -- Dasan's Equipment Begins First Volume Deployment with Korea's Largest Telecom Service Provider

PMC-Sierra, Inc. (Nasdaq:PMCS), a leading provider of broadband communications and storage semiconductors, and Dasan Networks, Inc., Korea's leading supplier of broadband access equipment, today announced that PMC-Sierra's EPON Fiber-To-The-Home (FTTH) semiconductors are designed into Dasan's FTTH equipment. This FTTH solution has been selected by Korea Telecom (KT) for volume deployment in Korea's FTTH network rollout, that will deliver premium-grade triple-play services -- voice, data and IPTV -- to its growing subscriber base. KT is expected to begin volume deployments in the third quarter of this year. According to Korea's Ministry of Information and Communication, the number of broadband subscribers in Korea has reached 12.4 million as of March 2006.

"This is an important industry milestone for the deployment of high-quality, triple-play ready Gigabit/s FTTH access networks and we are delighted that Dasan, Korea's leading supplier of broadband equipment, has selected PMC-Sierra's EPON semiconductors for its FTTH solutions," said Victor Vaisleib, general manager of the FTTH Business Unit at PMC-Sierra. "Previously, KT had announced a number of certifications for Gigabit/s FTTH network equipment, but following a comprehensive round of in-the-field trials, KT has chosen to move forward into volume deployment with equipment from Dasan based on PMC-Sierra EPON semiconductors."

Min Woo Nam, Chief Executive Officer, Dasan Networks, Inc., said, "We are very pleased to be partnering with PMC-Sierra in supplying KT with leading-edge Gigabit/s EPON FTTH broadband access equipment. PMC-Sierra is the only FTTH silicon supplier with experience in deploying Gigabit/s FTTH devices in millions of units. Their devices match the high performance requirements of triple-play services with a proven hardware/software platform that is flexible, carrier programmable and scalable for future service requirements. From our experience, this is the only solution that achieves the low BOM (Bill of Materials) cost required for high volume deployment. Korea leads the world in broadband users and we are committed to increasing the number of users by increasing the performance of the network while lowering operating costs."

Dasan will supply ONU (Optical Network Unit) FTTH equipment for consumers in CPEs (Customer Premise Equipment) and OLT (Optical Line Terminal) FTTH equipment for central office equipment (COs). The PON (Passive Optical Network) network architecture delivers Gigabit/s bandwidth from the fiber-based core network to the consumer using ultra-high bandwidth fiber. Because the PON infrastructure requires no active electronics, it results in a very low cost of operation network infrastructure as compared to active, low-bandwidth copper networks that require constant and costly maintenance. Dasan's ONU CPE systems use PMC-Sierra's third-generation PAS6201 ONU device powered by PMC-Sierra's GigaPASS(TM) FTTH architecture. Dasan's OLT systems use PMC-Sierra's field-proven PAS5001 OLT device.

"After several field trials, KT has selected the Dasan/PMC-Sierra solution, most likely due to Dasan's proven track record in Korea as a leading broadband access equipment supplier and PMC-Sierra's proven track record in Japan, which has been the standard bearer for PON deployments," said PON industry analyst, Jeff Heynen, Directing Analyst, Broadband and IPTV, Infonetics Research. "This is the long-awaited high-volume FTTH deployment in Korea, which certainly solidifies PMC-Sierra's strong position in the Asia-Pacific region."

About Dasan Networks

Dasan Networks, Inc. is recognized as the market leader in providing broadband access solutions in the pioneering Korean VDSL and Metro Ethernet equipment market. With key customers in Korea, Japan, China and Europe, it has demonstrated worldwide technology leadership in IP-Ethernet and IP-DSLAM technologies and provides a full range of leading-edge IP products to its global customers. It offers both OLT (Central Office equipment) and ONU (Customer Premise equipment) GE-PON network access systems. The company was established in 1993, registered sales of over $70 million USD in the first half of FY06 (10/01/05 to 03/31/06), and had over 480 employees as of March 2006. In 2004, the company entered into a close development and sales partnership relationship with Siemens with Siemens acquiring a controlling interest in the company. For more information, please visit http://www.dasannetworks.com.

About PMC-Sierra

PMC-Sierra(TM) is a leading provider of broadband communications and storage semiconductors for metro, access, fiber to the home, wireless infrastructure, storage, laser printers and customer premises equipment. PMC-Sierra offers worldwide technical and sales support, including a network of offices throughout North America, Europe, Israel and Asia. The company is publicly traded on the NASDAQ Stock Market under the PMCS symbol and is included in the S&P 500 Index. For more information, visit www.pmc-sierra.com.

Resources to Extend Your Product Knowledge and Understanding

PMC-Sierra FTTH Products www.pmc-sierra.com/ftth-pon

PMC-Sierra White Papers www.pmc-sierra.com/whitepaper

PMC-Sierra Webinars www.pmc-sierra.com/webinars

(C) Copyright PMC-Sierra, Inc. 2006. All rights reserved. PMC is a registered trademark of PMC-Sierra, Inc. in the United States and other countries. PMC-SIERRA, PMCS, "Thinking You can Build On" and GigaPASS are trademarks of PMC-Sierra, Inc. Other product and company names mentioned herein may be trademarks of their respective owners.