Mitel-Teleoptix Selects AMCC's 10Gb PHY Technology for Leading-Edge Telecom XFP Module

Applied Micro Circuits Corporation (NASDAQ:AMCC), a global leader in optical transport, embedded Power Architecture® processing and storage solutions, announced today that Mitel-Teleoptix S.r.l., an Italian optical communications solutions provider, has chosen AMCC’s S19233 10Gb/FC/SONET/SDH/FEC Dual CDR integrated circuit technology for use in its XFP optical transceiver modules for 80-kilometer TDM and DWDM applications.

The Mitel-Teleoptix module will be displayed through Wednesday in AMCC’s booth #602, Hall 9 at ECOC 2008, Europe’s largest Optical Fiber Communications Conference taking place this year in Brussels, Belgium, 21-25 September (Exhibition: 22 – 24).

The Mitel-Teleoptix TXFP optical transceiver series was designed to support equipment manufacturers developing 10 Gigabit per second optical transport solutions for their networks. The modules provide cost-effective, high-performance connectivity based on hot pluggable technology and small form factor. AMCC’s S19233 device is a 10GbE/Fibre Channel/SONET/SDH Dual CDR with electronic dispersion compensation (EDC) suitable for XFP MSA modules. While its EDC circuitry is one of the key enablers for expanding XFP applications to long reach DWDM, the device can also be used to design multiple modules ranging from 2-km to 120-km links with one footprint.

"Service providers and telecommunication companies today seek to upgrade their optical networks to answer the huge demand of bandwidth driven by Internet traffic growth while simultaneously improving performance and lowering the overall cost of installing and maintaining their networks. The key to the cost-effective upgrade of these networks is clock-and-data recovery (CDR) and EDC technology,” said Daniele Conti, head of optical modules development team for Mitel-Teleoptix. "EDC technology extends the reach of optical links through the compensation of impairments found in the components and fiber optic cabling and through the improvement of performance. That’s why Mitel-Teleoptix has selected AMCC’s S19233, which integrates the CDR and EDC functionalities in one chip, as the natural choice to use inside its long haul and DWDM XFP modules.”

"We are pleased to have AMCC’s S19233 10Gb PHY in production in the XFP optical transceiver module from Mitel-Teleoptix,” said Neal Neslusan, Director of Marketing at AMCC. "Their ability to deliver superior performance, connectivity and flexibility for their customers clearly sets them apart in this market. AMCC’s PHY technology is the perfect match for Mitel-Teleoptix’s high-speed long haul network solutions and we look forward to supplying this technology that drives cost-effective telecom solutions and the convergence to optical networks.”

AMCC's transport portfolio delivers cost-effective, high-performance, high-capacity components for enterprise and telecom providers worldwide for applications ranging from access networks to the data center. AMCC’s technology leadership in EDC, forward error correction (FEC), Serdes, CDR and FRACn provides efficient and high-performance building blocks to deliver the highly integrated components required by key worldwide system vendors, OEMs, and ODMs.

For more information on AMCC transport products, visit http://www.amcc.com/products/transport.html.

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® based processors and with world-class expertise in SONET and Ethernet protocol processing and PHY technology and Storage processors and RAID controllers, our products are the foundation of the IP Communications Revolution. AMCC's 3ware® SAS and SATA RAID controllers deliver cost-effective, high-performance, high-capacity storage for enterprises and consumers worldwide in applications like disk-to-disk backup, near-line storage, network-attached storage (NAS), video, and high-performance computing. For further information regarding AMCC, please visit our website at www.amcc.com.

About Mitel-Teleoptix

MITEL-TELEOPTIX srl, belonging to the Italian Compel group, is an experienced high speed components integrator and transceivers vendor, with solid technical expertise on high frequency packaging solution and on optical transceiver development. Mitel-Teleoptix is based in Italy, employing 230 people with more than 30 devoted to R&D activities and 2 manufacturing plants for optical and microwave module production.

Teleoptix is the optoelectronics division of the company with a wide product portfolio addressing the fiber optical telecommunication market, expecially in the range of high bit rate applications at 10Gb/s and 40Gb/s (XFP; 300PIN). For more information, visit http://www.mitel-teleoptix.it/.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as expects, anticipates, plans, believes, estimates, will or words of similar meaning. 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 may 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, and in the Company's other SEC filings. 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 press release are made as of the date hereof and AMCC does not assume any obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise.

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