SAN DIEGO—(BUSINESS WIRE)—March 9, 2005— Applied Micro Circuits Corporation (NASDAQ: AMCC) today announced that its board of directors has named Kambiz Hooshmand, 43, as president, chief executive officer and a member of the board of directors, effective March 21, 2005. Mr. Hooshmand succeeds David M. Rickey who is retiring from his post as chairman, president, chief executive officer and a director of the Company, effective March 20, 2005. Mr. Rickey will remain an AMCC employee through August to assist in a smooth transition. Lead independent director Cesar Cesaratto will assume the role of chairman of the board.

Hooshmand joins AMCC from Cisco Systems, where he most recently served as vice president and general manager of Cisco's Optical and Broadband Transport Technology group. Hooshmand has over two decades of experience in core routing, VoIP, ATM, access and transport technologies.

"We are extremely pleased to have attracted someone of the caliber of Kambiz to lead AMCC. His proven track record of entrepreneurial vision, customer service and enhancing business fundamentals within a global tier-one powerhouse will bring immediate benefits to AMCC," said Cesar Cesaratto, the newly appointed chairman of the board of AMCC. "In addition, his understanding of our end markets and international applications will add new dimensions to our vision and evolving strategy."

"I have tremendous respect for Kambiz and feel confident that I am leaving the company in good hands," said Dave Rickey, outgoing chairman, president and CEO of AMCC. "His expertise in successfully leading large divisions of Cisco makes him a natural choice as AMCC's next President and CEO. I will work closely with the board and Kambiz to ensure a seamless transition for our customers, shareholders, partners and employees."

At Cisco, Hooshmand held several executive-level positions in Multi-Service Switching, DSL, Carrier Core and Multi-Service, and Optical and Broadband Transport business units. He joined Cisco as a director of engineering as part of the StrataCom acquisition in 1996. Hooshmand was one of the early leaders at StrataCom that developed the nascent Frame Relay market into what is now a multi-billion dollar worldwide services market. Hooshmand's work with both domestic and international carriers led to the deployment of many of the largest and most high-availability data networks in the world.

"AMCC is at an important point in its evolution as a communications, storage and embedded solutions provider, and I'm excited to work in concert with its seasoned executive team and board of directors to drive the company towards long-term profitability," said Kambiz Hooshmand, the newly appointed president and CEO of AMCC. "There's an unparalleled wealth of silicon, hardware and software expertise here, along with a best-in-class reputation for meeting customers' needs. I'm looking forward to leading this truly dynamic company."

Hooshmand holds a Master of Science degree in Engineering Management from Stanford University and a Bachelor of Science degree in Electrical Engineering from California State University at Chico.

AMCC will file a current report on Form 8-K regarding the employment of Hooshmand and the retirement of Rickey with the U.S. Securities and Exchange Commission within four business days. A copy of the filed current report will be accessible at www.sec.gov or through the company's website at www.amcc.com.

About AMCC

AMCC provides the essential building blocks for the processing, moving and storing of information worldwide. The company blends systems and software expertise with high-performance, high-bandwidth silicon integration to deliver silicon, hardware and software solutions for global wide area networks (WAN), embedded applications such as PowerPC and programmable SOC architectures, storage area networks (SAN), and high-growth storage markets such as Serial ATA (SATA) RAID. AMCC's corporate headquarters are located in San Diego, California. 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

This news release contains forward-looking statements, including, but not limited to, statements regarding the company's growth and profitability, new management and market acceptance of our products. These forward-looking statements are only predictions based on current information and expectations and are subject to certain risks and uncertainties, including, but not limited to, our ability to effectively transition management roles to new personnel, our ability to retain key personnel and to continue to recruit qualified personnel, our ability to develop new and enhanced products that achieve widespread market acceptance or other reasons. More information about potential factors that could affect the company's business and financial results is included in the "Risk Factors" set forth in the company's Annual Report on Form 10-K for the year ended March 31, 2004, and the company's subsequent filings with the Securities and Exchange Commission. Actual results could differ materially from those set forth in the forward-looking statements as a result of such risk factors as well as other risks and uncertainties.

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

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