SUNNYVALE, Calif., August 7, 2006 -- Applied Micro Circuits Corporation (AMCC) [NASDAQ-GS: AMCC] was awarded Storage Magazine’s Connectivity Product of the Year for the second year in a row. This year’s winning entry is the 3ware® 9550SX-16ML, a 16-port SATA II RAID controller which capitalizes on AMCC's innovative Multi-lane™ connection system, which won the Connectivity Product of the Year award in 2005. AMCC received the honor at the 2006 Storage Awards (“The Storries III”) in London.

“Of the total votes cast in the Connectivity Product of the Year category, over 50% were for AMCC,” said Stuart Leigh, publishing director of Storage Magazine, organizer of the awards and the UK’s number one IT storage magazine. “This is just reward for a company that not only pioneers in a challenging, technology-driven arena, but produces high-performance storage solutions in a demanding marketplace. To win one award is difficult, so winning two in succession confirms AMCC's rightful place at the top of the storage connectivity tree.”

The 3ware 9550SX-16ML’s sophisticated RAID features, powerful performance architecture and advanced SATA II features including 3Gb/s transfer speed and Native Command Queuing (NCQ) support drive its industry-leading performance with over 800MB/sec RAID 5 reads and 380MB/sec RAID 5 writes.

“We are pleased that our 3ware SATA RAID controller technology has once again been recognized as offering a compelling choice for scalable RAID storage solutions,” said Barbara Murphy, vice president and general manager, AMCC Storage. “The Storries are particularly important, as the winners are determined by votes from people actually working in the industry.”

About AMCC
AMCC blends systems and software expertise to provide the essential building blocks for the processing, moving and storing of data worldwide. The #1 high-port count Serial ATA RAID controller line, AMCC’s 3ware® family of SATA RAID storage solutions deliver cost-effective, high-performance, high-capacity storage for enterprises and consumers worldwide in applications such as disk-to-disk backup, near-line storage, network-attached storage (NAS), video, and highperformance computing. The company is headquartered in Sunnyvale, California with offices throughout the world. For more information, visit http://www.3ware.com or http://www.amcc.com.

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Forward Looking Statements
The statements contained in this press release that are not purely historical and 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, 2005, 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.

AMCC, 3ware and Multi-lane are trademarks or registered trademarks of Applied Micro Circuits Corporation. Other trademarks are the property of their respective owners.