AMCC and Senao Partner to Provide Wireless LAN Reference Design Kits for Enterprise Access Points

Applied Micro Circuits Corp. (NASDAQ:AMCC), a global leader in embedded Power Architecture™ processing, optical transport and storage solutions, and Senao Networks, Inc. (Senao), a leading Taiwanese designer and manufacturer of voice and data communications products, today announced a strategic partnership that will accelerate customers' time-to-market for wireless LAN products based on AMCC's PowerPC® 405 family of embedded processors.

Through this partnership, Senao will develop turnkey, Enterprise Access Point reference design kits for AMCC that include production-ready, certified hardware platforms. AMCC will sell these reference design kits to customers worldwide while also making the complete design package available for customers to use as a baseline starting point for their own product designs. Customers will also have the option of licensing complete productized versions of the reference design kits directly from Senao.

Based in Taiwan and in business since 1979, Senao provides a wide range of wireless LAN solutions as well as offering product design services to customers around the world. Senao's products in this category include indoor devices, outdoor devices, accessories and adapters.

AMCC and Senao expect to announce the first product resulting from this partnership in late 2007, along with a turnkey software solution customized for the platform.

"We are delighted to announce this strategic partnership with Senao," said Charlie Ashton, director of software at AMCC. "Our embedded processors have achieved tremendous success in wireless LAN applications and we are confident that Senao's support will further enhance our market position. By providing turnkey solutions in the form of comprehensive reference designs, we will enable our customers to minimize their time-to-market for deploying products addressing wireless applications."

“We selected AMCC to jointly develop reference designs because their embedded processors have an outstanding reputation for quality, performance and low power requirements,” said Dr. J.C. Chen, Vice President – R&D of Senao Networks. “I am confident that this cooperation between AMCC and Senao will result in hardware platforms that will enable our customers to develop and enhance the features of their products and bring them to market in a timely manner.”

About AMCC

AMCC is a global leader in embedded Power Architecture™ processing, optical transport and storage solutions. Our products enable the development of converged IP-based networks offering high-speed secure data, high-definition video and high-quality voice for carrier, metropolitan, access and enterprise applications. AMCC provides networking equipment vendors with industry-leading communications processing, Ethernet, SONET and switch fabric solutions. AMCC is also the leading vendor of high-port count SATA RAID controllers enabling low-cost, high-performance, high-capacity storage. AMCC's corporate headquarters are located in Sunnyvale, 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.

About Senao

Senao Networks, based in Tao-Yuan, Taiwan, is a subsidiary of Senao International Co., Ltd. with a focus of OEM/ODM of SOHO and business class wireless communications and wire line networking products. Senao International, founded in 1979, is the exclusive channel partner of Chunghwa Telecom (CHT), the incumbent PSTN, broadband, and cellular service provider of Taiwan. Senao Networks designs and manufactures voice and data communications products, including indoor and outdoor WLAN (Wireless Local Area Network), WPBX (Wireless Private Branching Exchange), PLAM (Private Local Area Mobilephone), broadband routers and switches. With its ISO9001 and TL-9000 certified SMT production facility in Taiwan, Senao is known for supplying industry-leading quality products as well as customer/technical supports. For more information about Senao Networks, please visit http://www.senao.com.

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.

AMCC is a registered trademark of Applied Micro Circuits Corporation. Power Architecture is a trademark licensed by Power.org. PowerPC is a trademark licensed by IBM Corporation. All other trademarks are the property of their respective owners.

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