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SAN DIEGO--(BUSINESS WIRE)--May 2, 2001--

AMCC's 40-Gbps Demonstrates That SiGe Is an Optimum Technology to Reliably Support Digital Signals Up to OC-768; Live Demo Lab Showcases AMCC's Complete Solution Offering Operating From the Edge to the Core

of the Network

Applied Micro Circuits Corp. (AMCC) (NASDAQ:AMCC), a leader in high-bandwidth silicon connectivity solutions for the world's optical networks, today announced the industry's first demonstration of a 40 Gbps eye diagram from a silicon germanium (SiGe)-based interface device exhibited at the company's fully-functional customer demo lab.

Originally demonstrated at the Optical Fiber Communications Conference, the 40 Gbps eye diagram data is based on AMCC's first 4:1 Mux prototype, operating at a 39.2 Gbps data rate. This technology will be implemented into AMCC's 16:1/1:16 OC-768 Mux/DeMux devices, which will be available this year. The Mux prototype was developed from the same wafer as AMCC's S76800, the industry's first commercially available 40 Gbps SiGe transimpedance amplifier, introduced in March.

``SiGe is demonstrating solid performance at OC-768 levels and AMCC's 40 Gbps eye diagram clearly reinforces the value of SiGe as an optimal technology for use in these high-speed applications,'' said Ken Prentiss, AMCC's director of marketing for telecom products. ``This demonstration is yet another milestone for AMCC as we continue our leadership in IC design by providing our customers with exceptional performance, functionality and flexibility in our devices. We are building upon the company's success in OC-192 to meet the industry's migration needs towards higher data rates.''

AMCC Customer Demo Lab

The 40 Gbps eye diagram can be viewed at AMCC's new customer demo lab located at the company's headquarters in San Diego. The lab demonstrates the capability of AMCC's products to take data and aggregate it up to the optical domain as speeds increase. AMCC's complete solution offering is highlighted through an actual link transporting data from OC-3 to OC-192 using devices from all of AMCC's design centers including Andover, Mass. and Minneapolis, Minn. The lab is utilized for customer specific demos, meetings with partners, training sessions for field application engineers and AMCC's sales force. Future plans for the showroom include the implementation of a computer-based training program.

``Our customer demo room shows the clear interoperability of AMCC's devices with each other as we continue to design and develop solutions for fiberoptic network,'' said Alan Sorgi, AMCC's director of marketing applications. ``This lab is an information resource for our customers, partners and engineers as we demonstrate AMCC's technological expertise and capability of offering complete solutions for transporting data from the edge to the core of the network.''

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 products discussed in this press release are subject to a number of risks and uncertainties, including the risk that the products would not be successfully or timely designed, developed 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 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 update any forward-looking statement.

Product photos, datasheets and application notes are available upon request. AMCC is a registered trademark of Applied Micro Circuits Corp.

Note: A Photo is available at URL: http://www.businesswire.com/cgi-bin/photo.cgi?pw.050201/bb2 http://www.businesswire.com/cgi-bin/photo.cgi?pw.050201/bb2a

     Applied Micro Circuits Corp.
     Bill Berridge or Karen Hartz, 858/535-4260 or -3436
     billb@amcc.com
     khartz@amcc.com
               or
     The Ardell Group
     Karina Wollesen, 650/569-3806
     karina@ardellgroup.com