Velio and AMCC Confirm Interoperability of Complete OC-192/Quad OC-48 Sonet Grooming Switch Solution

Business Editors & High-Tech Writers

SUPERCOMM 2002

Booth #23716

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MILPITAS, Calif. and SAN DIEGO--(BUSINESS WIRE)--June 3, 2002--

Best-In-Class Framers, Backplane Transceivers and

STS-1 Grooming Switches Form Complete SONET/SDH Solution

To Be Shown At SuperComm 2002

Velio Communications Inc., a leading developer of high-speed communications semiconductors, and industry leader Applied Micro Circuits Corp. (AMCC) (Nasdaq:AMCC - News) today announced they have completed interoperability testing of SONET/SDH products and are demonstrating a complete, end-to-end OC-192/Quad OC-48 SONET/SDH solution in both companies' booths next week at SUPERCOMM 2002 in Atlanta (AMCC Booth #23716; Velio Booth #11001).

The Velio Zeus(TM) switch device (VC2002) is a 180Gb/s throughput, 72x72 STS-48/STM-16 SONET/SDH Grooming Switch, with STS-1/AU-3 granularity. For STS-192 traffic, the Zeus switch is an 18x18 Grooming Switch (with 1:4 de-interleaving). The AMCC Mekong Framer (S19204) provides pointer processing, advanced performance monitoring, transparency and large deskew buffers for OC-48 to OC-192 aggregation, OC-192 to OC-192 regeneration and inverse multiplexing applications. It also supports two APS ports for Line and Switch Fabric protection applications. In addition, Velio's SONET-EOS (Eye-Optimizing SerDes) (VC1022) backplane SerDes converts the Mekong SFI-4 interface into 2.488 Gb/s serial links for communication to the Zeus Grooming Switch over an electrical backplane.

By demonstrating interoperability between all major components in the system, AMCC and Velio provide customers with a decided advantage. Time-to-market is reduced, because device-interconnect debug is minimized, and system-level features have already been proven. This interoperability testing enables customers to choose the best components at each stage of their system, and still realize the benefit of smooth operation and technical support. The successful testing is possible in large part because both AMCC and Velio support industry standards. The interface between the Mekong Framer and the VC1022 SerDes is SFI-4 compliant, and the 2.488 Gb/s backplane signal is CML (Current Mode Logic), also an industry standard. Using CML with Velio's transmit pre-emphasis helps ensure signal integrity at over 1 meter of FR4.

Both companies recognize the other's leadership position in their respective markets (AMCC's leading Framer and Pointer-Processor technology; Velio's leading STS-1 Grooming Switch fabrics) and have determined that a demonstrated interoperability of their silicon solutions gives their customers the advantage of a complete SONET/SDH solution while still using best-in-class components at each stage.

"AMCC has an industry-leading Framer and Pointer-Processing portfolio, and is very well positioned to continue to lead in this market," said Bill Woodruff, vice president of marketing at Velio. "We are pleased to be working with a world class vendor like AMCC to offer our customers the best solutions for all of their needs."

"Velio has clearly established itself as the leader in the STS-1 Grooming Switch Fabric market. Their anticipation of this important and growing market, combined with their technology and their strong execution, has allowed them to become a critical supplier to many tier-one networking system customers," said John LoMedico, AMCC's vice president of marketing for the framer-layer products division. "Demonstrating interoperability benefits our customers' time-to-market advantage, and allows both AMCC and Velio to offer their mutual customers industry-leading, system-level solutions that adhere to standards."

About Velio Communications

Velio is a leading provider of high bandwidth/low power semiconductors that solve the intra-system communications challenges faced in the architecture of next generation communications and storage platforms. Founded in 1998, Velio has achieved more than 50 design wins and is shipping for revenue its backplane SerDes, Crosspoint Switch and STS-1 Grooming Switch with Tier One and Tier Two customers in telecom, datacom and storage markets. Venture funded by leading firms such as Sequoia Capital, Redpoint Ventures and Capital Research Group, Velio is headquartered in Milpitas, and has design centers in Lowell, Mass.; Chapel Hill, N.C.; and Princeton, N.J. For more information on Velio Communications, visit www.velio.com or contact the company at 408/474-0700.

About AMCC

AMCC designs, develops, manufactures and markets high-performance, high-bandwidth silicon solutions empowering intelligent optical networks. AMCC utilizes a combination of digital, mixed-signal and high-frequency analog 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 switch fabric, traffic management, network processor, framer/mapper, PHY and PMD 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. For further information regarding AMCC, please visit our Web site at http://www.amcc.com.

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, 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.

Velio and Velio Communications are trademarks of Velio Communications. AMCC is a trademark of Applied Micro Circuits Corporation. All other trademarks are the property of their respective owners.

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     Applied Micro Circuits Corp.
     Karen Hartz, 858/535-3436
     khartz@amcc.com
       or
     The Ardell Group (for AMCC)
     Angela Edgerton, 858/792-2941
     angela@ardellgroup.com
       or
     Velio Communications
     Bill Woodruff, 408/474-0735
     bill.woodruff@velio.com
       or
     Acuitive (for Velio)
     Tim Helms, 925/606-6936
     thelms@acuitive.com