3ware Acquisition

3/2/2004

M&A

$150,000,000

Applied Micro Circuits Corporation (Nasdaq: AMCC) today announced that it has signed a definitive agreement to acquire 3ware(R), Inc. Under the terms of the agreement, AMCC will acquire all outstanding shares of 3ware for approximately $150 million in cash and will assume stock options based on an exchange ratio to be determined at closing. Based on yesterday's closing price, AMCC expects to assume options to purchase approximately five million AMCC shares. The transaction is subject to certain customary closing conditions and regulatory approvals, and is expected to close at or around April 1, 2004, and is therefore not expected to affect AMCC's March quarter results. AMCC expects this transaction to be non-dilutive to its pro-forma earnings per share for the June quarter. In connection with this transaction, AMCC expects to record certain acquisition-related charges, however the timing and magnitude have not yet been determined.

Acquired or Merged

Storage

701 E Middlefield Rd.
Mountain View, CA 94043
USA

Not Recorded

3ware, Inc., the technology leader in high-performance, high-capacity Serial ATA (SATA) RAID storage solutions, delivers reliable, enterprise class RAID storage using -- cost effective SATA drives.