PMC-Sierra Introduces First End-to-End EPON Silicon Solution With Key China Telecom Features.

New ONU and OLT EPON Devices Will Lower Cost of FTTH Deployments in China

HONG KONG -- PMC-Sierra, Inc. (Nasdaq:PMCS) today announced the availability of the industry's first EPON optical network unit (ONU) and optical line terminal (OLT) silicon devices that support China Telecom defined algorithms and features for the Chinese telecom market. The new PAS6301 ONU for Customer Premises Equipment (see Figure 1) and the PAS5201 OLT for Central Office equipment (see Figure 2) together provide an end-to-end EPON solution. The two system-on-chip (SoC) devices are the first to be designed to meet new China Telecom standards that define data encryption and decryption algorithms, quality of service procedures and classification protocols, making them ideal for emerging high-volume deployments in China. These devices extend PMC-Sierra's product leadership in high-volume EPON devices by providing the first enhanced Forward Error Correction (FEC) in both ONU and OLT devices, enabling higher split ratio and longer physical links in the access network. In addition, the PAS6301 includes Voice-over-IP service support to lower the cost of providing voice over fiber. Both devices support large packet buffers for higher quality IPTV broadcast capabilities, which is a significant improvement over previously available devices.

"We are pleased that a market leader such as PMC-Sierra has introduced EPON devices that support the features that we have deemed important for our marketplace," said Director Wang Zuo Qiang of the Network Technology Department of China Telecom. "We have worked with the industry to define a complete set of features and algorithms so that equipment deployed in China will be compatible with our requirements."

"These new EPON SoCs demonstrate PMC-Sierra's commitment to all Asian markets," said Victor Vaisleib, general manager of the FTTH Business Unit at PMC-Sierra. "They provide key feature integration for supporting China Telecom FTTH deployments as well as providing extended feature sets that result in a lower BOM cost for the system vendors."

"PMC-Sierra is first to market with end-to-end EPON product enhancements that comply with important market-oriented specifications," said Jeff Heynen, directing analyst for Broadband and IPTV with Infonetics Research. "According to our research, PMC-Sierra is the volume leader in FTTH devices with millions of devices deployed in Japan. These new devices will position them to support future deployments in China as well."

Demonstrations at ITU Telecom World

PMC-Sierra will be showcasing its portfolio of solutions for fiber to the home and customer premises equipment, as well as solutions for wireline and wireless equipment at ITU Telecom World in Booth #2008, from December 4 - 8, 2006 in Hong Kong, China. Highlights include:

* A demonstration of the industry's first EPON residential gateway solution with the ability to deliver carrier-grade IPTV and voice services over the home network; and

* The industry's first EPON ONU and OLT silicon devices with key China Telecom features.

Availability and Customer Support

Samples of the EPON PAS6301 ONU and PAS5201 OLT devices are available now. The PAS6301 ONU is available in a PGBA 456 package and the PAS5201 is available in a BGA 376 package. For more information, contact a PMC-Sierra sales representative at http://www.pmc-sierra.com/contactSales. A comprehensive support package, including datasheets and application notes is available at www.pmc-sierra.com/ftth-pon.

About PMC-Sierra's FTTH Family of Products

PMC-Sierra is the only supplier to support both EPON (IEEE 802.3ah Ethernet in the First Mile) and GPON (ITU-T G.984) standards. The Company's gigabit PON products are based on the robust GigaPASS FTTH Architecture that achieves sustained gigabit and greater data rates while providing a powerful 32-bit programmable processing engine executing the real-time operating system, middleware and application-specific firmware required for high performance FTTH network access functions. PMC-Sierra system-on-a-chip solutions provide end-to-end gigabit per second bandwidth solutions linking central office equipment and customer premise equipment. OLT (optical line terminal) devices connect the central office to the PON network and ONU (optical network unit) or ONT (optical network terminal) devices connect customer premises to the PON network. For more information, visit www.pmc-sierra.com/ftth-pon.

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.

Attachments:

Figure 1: PAS6301 ONU Block Diagram

Figure 2: PAS5201 OLT Block Diagram

For figures visit: http://www.pmc-sierra.com/pressRoom/pdf/EPON_figures.pdf

For photos visit: http://www.pmc-sierra.com/pressRoom/images/EPON_ONU_OLT.jpg

Resources to Extend Your Product Knowledge and Understanding

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

PMC-Sierra New Products: www.pmc-sierra.com/products/newProducts.html

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.