CAMARILLO, Calif. -- Vitesse Semiconductor Corporation (Pink Sheets:VTSS - News) today announced that it has received the required consents from the bondholders to amend the indenture governing the Company's 1.5% Convertible Subordinated Debentures Due 2024 (the "Debentures").

In the amendment, the bondholders will instruct the Trustee to agree to rescind and annul the previous asserted acceleration of the Debentures and any Events of Default asserted in connection with that asserted acceleration. Additionally, it provides that the Company's failure to file its required reports with the Securities and Exchange Commission will not be a Default or Event of Default under the Indenture prior to the earlier of (A) the date on which the Company gives notice to the Trustee under the indenture that it has filed all its required reports with the Securities and Exchange Commission for a period of 12 consecutive months and (B) December 31, 2012. As part of this amendment, the interest payable of the Debentures on October 1, 2007 only will be increased by $20.00 per $1,000 principal amount of the Debentures.

"We are pleased to receive bondholder approval for the amendment. This is one clear example of the deliberate actions we are taking as part of our restatement and reaudit plan. As stated during the July 2007 investor call, our goal is to present complete audited financial statements for years 2007 and 2006 by the first quarter of calendar year 2008," said Christopher R. Gardner, chief executive officer of Vitesse.

Vitesse Semiconductor Corp. (Nasdaq: VTSS)