Nasdaq Warns AMCC 630856

SUNNYVALE, Calif. -- Applied Micro Circuits Corporation (Nasdaq: AMCC) today announced that due to the delay in the filing of its Quarterly Report on Form 10-Q for the quarter ended June 30, 2006, it has received an additional letter from The Nasdaq Stock Market indicating that the Company's common stock is subject to delisting pursuant to Nasdaq Marketplace Rule 4310(c)(14). AMCC previously announced on June 30, 2006 that due to the delay in the filing of its Annual Report on Form 10-K for the year ended March 31, 2006, it had received a letter from The Nasdaq Stock Market indicating that the Company's common stock is subject to delisting pursuant to Nasdaq Marketplace Rule 4310(c)(14). Nasdaq Marketplace Rule 4310(c)(14) requires the Company to make on a timely basis all filings with the Securities and Exchange Commission, as required by the Securities Exchange Act of 1934, as amended.

AMCC has requested and was granted a hearing before the Nasdaq Listing Qualification Panel. At the hearing, which is scheduled for August 17, 2006, AMCC's management will present in person its plan to regain compliance with Nasdaq's filing requirements. There can be no assurance that the Nasdaq Panel will grant the Company's request for an extension that would allow the continued listing of the Company's common stock on The Nasdaq Global Market until the Company files its Annual Report on Form 10-K for the year ended March 31, 2006 and its Quarterly Report on Form 10-Q for the quarter ended June 30, 2006.

As previously announced, AMCC has delayed filing its Annual Report on Form 10-K for the year ended March 31, 2006 as a result of the self-initiated review by the Company's Audit Committee of the Company's historical stock option grant practices and related accounting. The Audit Committee is being assisted by outside legal counsel and accounting experts. Until the Audit Committee's review is complete, the Company will be unable to complete and file its Annual Report on Form 10-K for the year ended March 31, 2006 and its Quarterly Report on Form 10-Q for the quarter ended June 30, 2006. The Company intends to file these reports as soon as practicable after the completion of the Audit Committee's review.

Applied Micro Circuits Corp. (Nasdaq: AMCC)