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SAN DIEGO--(BUSINESS WIRE)--June 4, 2001-- Applied Micro Circuits Corp. (AMCC) (Nasdaq:AMCC) today announced the availability of the Mekong (S19204), the industry's first highly integrated OC-192 SONET/SDH framing and pointer processor device with on-chip features critical for next generation optical networking equipment.

Mekong is a multi-feature integrated circuit enabling customers to collapse multiple functions down to one chip, including aggregation, pointer processing and grooming functions. Mekong is complemented by AMCC's best-in-class CMOS Serializers/Deserializers (SERDES), Forward Error Correction (FEC) devices and switch fabric devices, to provide an end-to-end chip set solution (See figure 1) that meets the power, cost and space requirements of new intelligent optical networking equipment.

``Mekong's ability to re-map section and line overhead or transparently pass-thru all TOH (Transport Overhead) bytes (Standard and Reserved bytes), with pointer processing enabled, on incoming SONET/SDH signals enables intelligent optical networking equipment to provide performance monitoring and support switching/routing decisions on incoming fibers. This can all be done while providing full transparent processing of client interfaces over private DWDM networks and public networks,'' said Mark Donovan, AMCC's Mekong senior product marketing manager. ``By designing the device to interface seamlessly with AMCC's popular OC-48 transceiver and OC-192 SERDES and 10G digital wrapper/FEC solutions, we're further contributing to the company's overall system solution approach and reducing our customer's time-to-market.''

Mekong also supports a variety of line interfaces for reducing system and board design requirements. For OC-48 interfaces Mekong supports 4-bit wide 622 Mbits/s interfaces, to enable seamless connections to AMCC's S3455 SERDES device. For OC-192 applications, Mekong provides 16-bit 622 Mbits/s interfaces for seamless connections to AMCC's 16-bit S3097/98 SERDES devices. Mekong's OC-192 interfaces are also designed for direct connection to AMCC's 10G digital wrapper/FEC Hudson device.

Mekong is AMCC's next generation framer/pointer processor device that enables the aggregation of four OC-48s into a larger OC-192 signal, or if used in conjunction with AMCC's Danube framer/pointer processor device, the aggregation of up to sixty-four OC-3s, sixteen OC-12s or logical combinations of OC-3, OC-12 and OC-48 asynchronous interfaces into a larger OC-192 signal (See figures 2 and 3). Mekong provides standard SONET/SDH pointer processing, and in addition, can transparently re-map the incoming OC-48 and OC-192 signals TOH across time domains and into the outgoing higher rate signal. Mekong also supports a pass-thru mode, where all TOH bytes (Standard and Reserved bytes) can be passed through Mekong, with pointer processing enabled, to enable full transparency across time domains. As a result, when AMCC's Danube is used in conjunction with Mekong, optical networking equipment vendors can offer service providers full transparency from OC-3 to OC-192 rates. Mekong can also perform the same functions in an OC-192-to-OC-192 mode.

Enabled by the device's two APS ports, Mekong provides protection switching and redundancy in both the multiplex and demultiplex directions and incorporates non-intrusive TOH monitoring for all inputs. The single-chip device features two built-in hitless Time Slot Interchange switches (TSIs), to provide STS-1 level traffic grooming, cross-connection, and add/drop applications. When used in conjunctions with AMCC's recently announced Zambezi, an 80G STS-1 level switch fabric device, the Mekong/Zambezi solution can serve as the first and Nth stage switch elements in a N-stage Clos switch fabric architecture (See figure 4). Mekong also offers a provisional pointer processor bypass mode for STS-192-to-STS-192 operation (through-timing); both a full framer bypass (no frame regeneration) as well as a pointer processor bypass (frame regeneration enabled) are also provided. Mekong also supports large deksew buffers in the multiplex direction for STS-192c inverse multiplexing applications. A high-speed microprocessor interface is provided for configuration and monitoring. Mekong also supports POH (B3/J1/G1/C2) monitoring, Full TOH drop and insert ports and robust alarm monitoring functions to provide the highest in OC-192 SONET/SDH integration and functionality for optical and DWDM equipment.

``Mekong's feature-rich architecture and flexibility allows for multiple use in DWDM, Metro DWDM, digital cross-connects, multi-service access switches and core switch platforms,'' said Neal Neslusan, AMCC's marketing director of transport products. ``It is well suited for Optical-Electrical-Optical (OEO) switching applications where grooming wavelengths from the optical network and supporting electrical SONET/SDH signal switching is required.''

Pricing and Availability

The Mekong (S19204) is scheduled for sampling to development partners in August, with volume production scheduled for Q4 2001. Packaged in a 624 CBGA, the device is priced at $775.00 in volume quantities.

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, 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, 2001, 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 Corporation.

Note: Photos are available at URLs:

Mekong: http://www.businesswire.com/cgi-bin/photo.cgi?pw.060401/bb6

End-to-End solution from Copper to Optics: http://www.businesswire.com/cgi-bin/photo.cgi?pw.060401/bb6a

OC-192: http://www.businesswire.com/cgi-bin/photo.cgi?pw.060401/bb6b

10 Gbps traffic through Mekong: http://www.businesswire.com/cgi-bin/photo.cgi?pw.060401/bb6c

40G Line Card with Mekong and Zambezi: http://www.businesswire.com/cgi-bin/photo.cgi?pw.060401/bb6d

     Applied Micro Circuits Corp., San Diego
     Bill Berridge, 858/535-4260
     billb@amcc.com
      or
     Karen Hartz, 858/535-3436
     khartz@amcc.com
       or
     The Ardell Group, San Diego
     Angela Edgerton, 858/792-2941
     angela@ardellgroup.com
       or
     Katy Tanghe, 858/792-2910
     katy@ardellgroup.com