AMCC, Avici Face Lawsuits

NEW YORK -- A securities class action lawsuit was commenced on behalf all persons who acquired Applied Micro Circuits Corporation. (Nasdaq: AMCC - news; "Applied Micro Circuits" or the "Company") securities between November 30, 2000 and February 5, 2001 (the "Class Period"). A copy of the complaint is available from the Court or from Bernstein Liebhard & Lifshitz, LLP. Please visit our website at www.bernlieb.com or contact us by phone at (800)217-1522 or by email at [email protected]. The case is pending in the United States District Court for the Southern District of California. Named as defendants in the complaint are Applied Micro Circuits and the following executive officers of the Company: David M. Rickey, Vincent Demaioribus, Brent E. Little, Stephen M. Smith, Roger A. Smullen, Sr., William E. Bendush, Franklin P. Johnson, Greg Winner, Ram Sudireddy, Thomas L. Tullie and Candace Kilburn.

The complaint charges defendants with violations of sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint alleges that the defendants issued materially false and misleading information and failed to disclose material adverse information that misrepresented the Company's financial condition and prospects for the fourth quarter ended March 31, 2001 and beyond.

In a separate release:

A securities class action lawsuit was commenced on behalf all persons who acquired Avici Systems, Inc. (NASDAQ: AVCI - news; "Avici Systems" or the "Company") securities between July 28, 2000, 1999 and April 20, 2001 (the "Class Period"). A copy of the complaint is available from the Court or from Bernstein Liebhard & Lifshitz, LLP. Please visit our website at www.bernlieb.com or contact us at(800)217-1522 or by email at [email protected].

The case is pending in the United States District Court for the Southern District of New York and has been assigned docket number 01-CV-3541. Named as defendants in the complaint are Avici Systems and Surya R. Panditi and Paul F. Brauneis, who are executive officers of Avici Systems. The complaint also names Morgan Stanley & Co. Incorporated ("Morgan Stanley") as a defendant. Morgan Stanley was a lead underwriter of Avici Systems's initial public offering.

The complaint charges defendants with violations of the Securities Act of 1933 and the Securities Exchange Act of 1934 for issuing a Registration Statement and Prospectus (the"Prospectus") that contained materially false and misleading information and failed to disclose material information. The Prospectus was issued in connection with Avici Systems's initial public offering of seven million shares of common stock at $31.00 per share that was completed on or about July 28, 2000.

Bernstein Liebhard & Lifshitz LLP