AMCC's Proprietary Compensation IP Offers Best-in-Class
  Performance Enhancements and Low Power, Delivering Significant Cost
        and Real Estate Savings to Optical Line Card Solutions

SAN DIEGO--(BUSINESS WIRE)--Nov. 5, 2003-- Applied Micro Circuits Corp. (AMCC) (NASDAQ: AMCC) today announced that it has built upon the company's proven electronic dispersion compensation technology, DispersionXX(TM), with the introduction of the S3394 10Gbps receiver device. The implementation of the S3394 enables customers to dramatically reduce power, expand link distances and use less expensive optics when designing small form factor solutions, significantly maximizing system performance and lowering their overall costs.

The S3394 is AMCC's second-generation 10Gbps dispersion compensation receiver featuring DispersionXX technology. Like the S3094 before it, the S3394 was designed to interface with a Forward Error Correction (FEC) device. Unlike the S3094, the S3394 receiver features two modes of operation. For maximum flexibility with existing optical designs, the S3394 will work directly with third-party FEC devices. For superior optical performance, the S3394 mates seamlessly to AMCC's NIAGARA G.709 FEC device. The S3394 supports OC-192, STM-64, 10GE, and 10G FibreChannel (or equivalent FEC rates) applications for metropolitan, long-haul, ultra long-haul and Dense Wavelength Division Multiplexing (DWDM) interfaces.

"We're very excited about this part. We've not only increased the performance in our second-generation electronic dispersion compensation device but we've also significantly lowered the power consumption of the solution," said Neal Neslusan, director of product marketing for AMCC. "While our first electronic dispersion compensation device was very much a vehicle targeted at proving the capability of the technology, the S3394 with DispersionXX technology is absolutely targeted at production solutions, and we feel the part is right on time for the marketplace."

In addition to the electronic dispersion compensation engine for Chromatic and Polarization Mode Dispersion, the S3394 provides essential features and functions such as a programmable Bessel Filter, peak detector, linear gain control amplifier, a low-pass filter, and a high-performance CDR/DeMux with threshold and phase adjust capabilities running off a convenient positive 1.8V/3.3V supply. The device supports NRZ and RZ data formats for rates up to 11.3Gbps with an input sensitivity down to 6 mV p-p.

Availability

The S3394 is currently sampling to development partners, with general availability scheduled for Q1 2004. For additional technical information, visit www.amcc.com/BestInClass/S3394.

For a photo of the S3394, visit
www.amcc.com/BestInClass/S3394Photo.

About AMCC

AMCC designs, develops, manufactures and markets networking silicon solutions for global wide area networks (WAN) and storage area networks (SAN). AMCC utilizes a combination of proven design expertise coupled with system-level knowledge and multiple silicon process technologies to offer integrated circuits that span the complete WAN PHY-to-fabric roadmap and a robust portfolio of networked storage products addressing Host Bus Adapters, storage array, switching and SAN extension requirements. The company's system solution portfolio addresses the high-performance needs of both transport and switching and routing applications within the evolving intelligent optical network, as well as Fibre Channel hardware and software products for high-growth Networked Storage markets. AMCC's corporate headquarters are located in San Diego. Sales and engineering offices are located throughout the world. For further information regarding AMCC, 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, completed 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, 2003, 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.

CONTACT: Applied Micro Circuits Corp. (AMCC), San Diego
Karen Hartz, 858-535-3436
khartz@amcc.com
or
Mary Pund, 858-535-6523
mpund@amcc.com
or
AMCC Editorial:
The Ardell Group
Angela Edgerton, 858-792-2941
angela@ardellgroup.com

SOURCE: Applied Micro Circuits Corp.