Your News Alert for AMCC

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[IMAGE] [IMAGE] =09 As requested, your News Alert for AMCC follows from E=
quityAlert.com. Applied Micro Circuits Corporation Announces Stock Opti=
on Exchange Program SAN DIEGO, Oct 18, 2001 /PRNewswire via COMTEX/ -- Ap=
plied Micro Circuits Corporation (Nasdaq: AMCC) today announced that it wil=
l be offering a voluntary stock option exchange program to its employees, o=
fficers and board members. Under the program, which is expected to commen=
ce before the end of October 2001, participants will be able to tender for =
cancellation stock options that have an exercise price equal to or greater =
than $20 per share for replacement options to be issued on a date which is =
at least six months plus one day from the date of cancellation of the tende=
red options. The exercise price of the replacement options will be equal to=
100 percent of the market price of AMCC stock on the grant date of these o=
ptions. The terms and conditions of the replacement options, including the =
vesting schedules, will be substantially the same as the terms and conditio=
ns of the cancelled options. "Our most important assets are our employees=
. Equity, in the form of options, has been a major employee motivator and a=
s such, a significant contributor to our success in the past," Dave Rickey,=
Chairman and Chief Executive Officer said. "In light of the decline in the=
price of our common stock, we recognize that the exercise prices of the ma=
jority of outstanding options to purchase our common stock, whether or not =
they are currently exercisable, are higher than the price of our common sto=
ck. We believe these options are less valuable as an incentive to retain an=
d motivate employees. By making this offer to exchange options, we intend t=
o provide our employees with the benefit of holding options that over time =
may have a greater potential to increase in value, and thereby create bette=
r incentives for our employees to remain with us and contribute to the atta=
inment of our future business and financial objectives and the creation of =
value for all of our stockholders." As of October 4, 2001, options to pur=
chase approximately 59 million shares of AMCC common stock were outstanding=
under the Company's stock option programs. Options to purchase approximate=
ly 39 million of these shares are expected to be eligible for the program. =
APPLIED MICRO CIRCUITS CORPORATION HAS NOT COMMENCED THE OFFER TO EXCHANG=
E THAT IS REFERRED TO IN THIS COMMUNICATION. UPON THE COMMENCEMENT OF THE O=
FFER TO EXCHANGE, AMCC WILL FILE WITH THE SECURITIES AND EXCHANGE COMMISSIO=
N A COMPLETED SCHEDULE T/O AND RELATED EXHIBITS AND DOCUMENTS, INCLUDING TH=
E OFFER TO EXCHANGE. ALL AMCC OPTIONHOLDERS ELIGIBLE TO PARTICIPATE IN THE =
OFFER TO EXCHANGE ARE STRONGLY ENCOURAGED TO READ THE SCHEDULE T/O AND RELA=
TED EXHIBITS AND DOCUMENTS, INCLUDING THE OFFER TO EXCHANGE, WHEN THESE BEC=
OME AVAILABLE. THESE DOCUMENTS WILL CONTAIN IMPORTANT INFORMATION ABOUT THE=
OFFER TO EXCHANGE. THE SCHEDULE T/O AND RELATED EXHIBITS AND DOCUMENTS WIL=
L BE AVAILABLE WITHOUT CHARGE AT THE SECURITIES AND EXCHANGE COMMISSION WEB=
SITE AT WWW.SEC.GOV AND WILL BE AVAILABLE WITHOUT CHARGE FROM AMCC TO ALL A=
MCC OPTIONHOLDERS ELIGIBLE TO PARTICIPATE IN THE OFFER TO EXCHANGE. AMCC =
Overview AMCC designs, develops, manufactures and markets high-performanc=
e, high-bandwidth silicon solutions for the world's optical networks. AMCC =
utilizes a combination of high-frequency analog, mixed-signal and digital d=
esign expertise coupled with system-level knowledge and multiple silicon pr=
ocess technologies to offer integrated circuit products that enable the tra=
nsport of voice and data over fiber optic networks. The company's system so=
lution portfolio includes switch fabric, traffic management, network proces=
sor, framer/mapper, PHY and PMD devices that address the high-performance n=
eeds of the evolving intelligent optical network. AMCC's corporate headquar=
ters and wafer fabrication facilities are located in San Diego. Sales and e=
ngineering offices are located throughout the world. For further informatio=
n regarding AMCC, please visit our web site at http://www.amcc.com or call =
our shareholder information line at (888) 982-AMCC (2622). This news rele=
ase contains forward-looking statements, including statements regarding the=
stock option exchange program, that are subject to certain risks and uncer=
tainties, including, but not limited to, those associated with unpredictabi=
lity and volatility of the market price of the Company's common stock betwe=
en the cancellation of existing options and the grant of replacement option=
s under the program, delays in the anticipated commencement date of the pro=
gram, changes in the accounting treatment of the program, and corporate dev=
elopments affecting the Company between the cancellation of existing option=
s and the grant of replacement options under the program, as well as the "R=
isk Factors" set forth in the Company's Annual Report on Form 10-K for the =
year ended March 31, 2001 and the most recent Quarterly Report on Form 10-Q=
, and the Company's other filings with the Securities and Exchange Commissi=
on. Actual results could differ materially, as a result of such factors, fr=
om those set forth in the forward-looking statements. MAKE YOUR OPINION C=
OUNT - Click Here http://tbutton.prnewswire.com/prn/11690X4=
2323345 SOURCE Applied Micro Circuits Corporation CONTACT: Will=
iam Bendush, Sr. Vice President, Chief Financial Officer, =
+1-858-450-9333, or Debra Hart, Investor Relations Manager, +1-858-535-421=
7, both of Applied Micro Circuits Corporation; or Editori=
al, Lynsi Derouin of The Ardell Group, +1-858-792-2944, f=
or Applied Micro Circuits Corporation URL: http://www.amcc.com=
http://www.prnewswire.com Copyright (C) 2001 PR Newswire. All rights re=
served. -0- KEYWORD: California INDUSTRY KEYWORD: CPR =
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