AMCC Enhances Relationship with IBM Microelectronics, Expands the Reach of its Leading PowerPC 4xx Product Portfolio

SUNNYVALE, Calif. -- Jan 23, 2008 -- Applied Micro Circuits Corporation today announced a significant expansion of its relationship with IBM. IBM will incorporate the entire AMCC PowerPC(R) 4xx embedded processor product portfolio into its Semiconductor Solutions offering, effective immediately.

Under this expanded relationship, AMCC and IBM's Semiconductor Solutions worldwide sales forces will both market AMCC's PowerPC 4xx products into key embedded processor markets, such as datacom/telecom networking, wireless infrastructure, printing/imaging and storage. This relationship reinforces AMCC's market success and award winning solutions in its fast growing PowerPC product line.

"AMCC is pleased to team with one of the premiere technology leaders in the world in order to seek new sales opportunities and move into new markets. Expanding our relationship with IBM is a key step to accelerating the growth of our PowerPC 4xx processor business," said Daryn Lau, Senior Vice President of Corporate Marketing and Strategy at AMCC. "By marketing our PowerPC 4xx family of products as part of its technology solutions offerings, IBM will add to our already growing customer base. We welcome this expanded relationship with IBM and are confident it will strengthen both companies."

"AMCC is one of the leaders in developing products based on the Power Architecture," said Steve Longoria, Vice President for Semiconductor Solutions, IBM. "Working with AMCC and incorporating their Power Architecture 4xx portfolio into our semiconductor offerings is consistent with IBM's strategy to proliferate the Power Architecture by leveraging its worldwide sales channel and extensive client network."

About AMCC

AMCC provides leadership semiconductor solutions to process, transport, and store digital information for the world's wired and wireless networks. As a leading supplier of Power Architecture(TM)-based processors and with world-class expertise in SONET and Ethernet protocol processing and PHY technology, our products are the foundation of the IP Communications Revolution. For further information regarding AMCC, please visit our website at http://www.amcc.com.