LITTLE ROCK, Ark., May 25, 2001 (PRIMEZONE) -- The Law Firm of Cauley Geller Bowman & Coates, LLP announced today that a class action has been filed in the United States District Court for the Southern District of California on behalf of purchasers of Applied Micro Circuits Corporation ("Applied Micro Circuits" or the "Company") (Nasdaq:AMCC) publicly traded securities during the period between November 30, 2000 and February 5, 2001, inclusive (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or can be viewed on the firm's Website at http://www.classlawyer.com/pr/applied_micro.pdf.

The complaint charges Applied Micro Circuits and certain officers and directors with violating the federal securities laws by issuing a series of materially false and misleading statements concerning the Company's operations and prospects for Q4 2001 and beyond, including that: (i) Applied Micro Circuits was on track to achieve 16% to 20% sequential growth for the fourth quarter 2001, compared with analysts' forecasts of 13% growth, in spite of all the recent concerns regarding carrier Capex spending and telecom equipment slowdowns; (ii) Applied Micro Circuits had $133 million in backlog, equal to 77% of its March 2001 forecast, and that this backlog was solid; (iii) the increase in the Company's Q3 days sales outstanding ("DSOs") was not attributable to many of the financial problems its customers were having but rather due to a recent acquisition and back-end loading due to foundry issues; (iv) MMC, Applied Micro Circuit's new subsidiary, had not been notified of any material order push-outs or cancellations; (v) Applied Micro Circuits demand was so strong that its only real restraint on its future financial prospects was its ability to have enough supply; and (vi) the Company would conservatively report fourth quarter EPS of $0.17 and fiscal 2001 EPS of $0.57.

The complaint charges that defendants' misrepresentations caused the price of Applied Micro Circuits securities to be artificially inflated throughout the Class Period. Taking advantage of the inflation in Applied Micro Circuits' stock caused by their statements, the Applied Micro Circuit insiders sold nearly $100 million worth of their own shares at artificially inflated prices of as much as $87 per share.

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

If you bought the securities of Applied Micro Circuits between November 30, 2000 and February 5, 2001, inclusive, you may, no later than June 11, 2001 request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Cauley Geller Bowman & Coates, LLP, or other counsel of your choice, to serve as your counsel in this action. If you are a member of this class, you can join this class action online at http://www.classlawyer.com/sign_up.html.

Cauley Geller Bowman & Coates, LLP has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Florida, Arkansas and California, but represents shareholders from throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's Website at www.classlawyer.com.


   CAULEY GELLER BOWMAN & COATES, LLP
   Client Relations Department:
   Sue Null, Charlie Gastineau or Jackie Addison
   P.O. Box 25438
   Little Rock, AR 72221-5438
   Toll Free: 1-888-551-9944
   E-mail: info@classlawyer.com

More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca

Cauley Geller Bowman & Coates, LLP 
Charlie Gastineau or Sue Null
(888) 551-9944