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SAN DIEGO--(BUSINESS WIRE)--April 17, 2001--Applied Micro Circuits Corp. (AMCC) (Nasdaq:AMCC), a leader in high-bandwidth silicon connectivity solutions for the world's optical networks, today announced the development of an OC-48 and OC-192 Resilient Packet Ring (RPR) roadmap with the first product utilizing the Spatial Reuse Protocol (SRP) developed by Cisco Systems and AMCC's framer and Physical Layer technology.

RPR technology provides for the efficient and dynamic mapping of bandwidth between various nodes on a ring network. RPR technology also protects traffic without allocating 50 percent of the ring bandwidth as ``standby bandwidth'' usually found in normal SONET rings. Instead, RPR allocates 100 percent of the bandwidth to working traffic and only reduces allocation on a node-by-node basis in protection circumstances.

``Networks built using RPR technologies will be inherently easier to manage and configure while saving substantial overhead costs for ISPs,'' said AMCC's John LoMedico, vice president of marketing, Digital Products. ``We are very excited to be on the leading edge of an important networking technology and plan to fully support our customers in successfully rolling out the best possible RPR solutions.''

Currently over 150 service provider customers are utilizing the Cisco resilient packet ring solution incorporating the SRP protocol, Dynamic Packet Transport (DPT), and more than 10,000 Cisco DPT ports have been shipped. Cisco has submitted SRP, which is based on open specifications and is freely available, to the IEEE 802.17 RPR Working Group for consideration as the industry standard. To accelerate this standardization, AMCC is actively participating in driving convergence amongst members companies of the RPR Alliance including Cisco Systems, Nortel Networks, Luminous Networks, Lantern Communications and Dynarc Inc.

``AMCC's support for SRP will provide service providers with even more options to benefit from the enhanced scalability, reliability and ease of operations offered by SRP-based solutions like DPT,'' said Graeme Fraser, vice president and general manager of Cisco's Metro IP Access Business Unit.

``By combining intellectual property from both Cisco and AMCC, it is possible to develop highly integrated single chip solutions that will reduce real estate and power by over 70 percent,'' said Amit Banerjee, director of marketing, Digital Products. ``This feat demonstrates unprecedented digital and analog integration comprised of framing, mapping, serialization/de-serialization, world-class CDR/CSU functionality and Spatial Reuse Protocol (SRP) packet processing.''

Availability

The RPR/SRP series of devices from AMCC will be available as standard products to all customers worldwide. The first SRP product from AMCC will be sampling to development partners in mid 2001.

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 fiber optic networks. The company's system solution portfolio includes PMD, PHY, framer/mapper, network processor, traffic management and switch fabric devices that address the high-performance needs of the evolving intelligent optical network. AMCC's corporate headquarters and wafer fabrication facilities are located in San Diego. Sales and engineering offices are located throughout the world.

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 the relationship with Cisco Systems, anticipated sales resulting from the relationship or new products derived from the relationship are subject to a number of risks and uncertainties, including the risk that the relationship would not result in such sales, that products derived from the relationship would not be successfully developed, timely 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 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 any forward-looking statement.

Product photos, datasheets and application notes are available upon request. AMCC is a registered trademark of Applied Micro Circuits Corp. All other trademarks are the property of their respective owners.

     Applied Micro Circuits Corp., San Diego
     Bill Berridge, 858/535-4260
     billb@amcc.com
       or
     Mary Pund, 858/535-6523
     maryp@amcc.com
       or
     The Ardell Group
     Karina Wollesen, 650/569-3806
     karina@ardellgroup.com