Wechsler Harwood Announces Expanded Class Period for the Action Against Applied Micro Circuits Corporation (Nasdaq: AMCC)

The following statement was issued today by the law firm of Wechsler Harwood Halebian & Feffer LLP ("Wechsler Harwood"):

Notice is hereby given that Wechsler Harwood has filed a class action lawsuit in the United States District Court for the Southern District of California on behalf of all purchasers of the common stock of Applied Micro Circuits Corporation (NASDAQ: AMCC) ("Applied Micro" or the "Company") from November 7, 2000 through February 5, 2001, inclusive (the "Class Period").

The complaint charges Applied Micro and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The Complaint alleges that the defendants disseminated false and misleading statements concerning the Company's operations and prospects, including the following:

  -- Applied Micro Circuits was on track to achieve 16% to 20% sequential
     growth for Q4 2001.

  -- Applied Micro Circuits had $133 million in backlog which was equal to
     77% of its forecast for its March quarter.

  -- The increase in its Q3 DSOs (days sales outstanding) was not
     attributable to the financial problems many of Applied Micro Circuits'
     customers were having but rather due to the MMC acquisition and
     back-end loading due to foundry issues.

  -- The Company's $133 million of backlog was solid.

  -- MMC, Applied Micro's new subsidiary, had not been notified of any
     material order cancellations.

  -- Applied Micro's demand was so strong that its only real restraint on
     its future financial prospects was its ability to have enough supply.

  -- The Company would conservatively report Q4 EPS of $0.17 and fiscal 2001
     EPS of $0.57.

  -- The Company would post growth of 16%-20% compared to the 13% analysts
     had previously forecast, in spite of all the recent concerns regarding
     telecom equipment slowdowns.

Taking advantage of the inflation in Applied Micro's stock caused by their statements, the Applied Micro insiders sold more than $100 million worth of their own Applied Micro stock at artificially inflated prices as high as $87 per share.

On February 5, 2001, after the close of the market, the truth concerning Applied Micro's operations and the sudden filings by Applied Micro's officers to sell their personal holdings in Applied Micro came under fire from analysts as they questioned Applied Micro about its claimed unique position in the optical space. Defendants were forced to disclose that in fact Applied Micro was experiencing large order cancellations with its OC-12, OC-48 and OC-192 products. This news sent Applied Micro's shares plummeting from $70 where they had traded days before when defendants were selling their own shares to as low as $53 on February 6, 2001.

Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Wechsler Harwood, who has significant experience and expertise prosecuting class actions on behalf of investors and shareholders. For more information on Wechsler Harwood, please visit http://www.whhf.com/.

If you are a member of the class described above, you may, not later than June 11, 2001, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Wechsler Harwood's Shareholder Relations toll free at 877-935-7400, or via e-mail at pguiteau@whhf.com.

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SOURCE: Wechsler Harwood Halebian & Feffer LLP

Contact: Wechsler Harwood, 877-935-7400, pguiteau@whhf.com

Website: http://www.whhf.com/