Applied Micro Circuits Corporation Announces Agreement To Acquire JNI Corporation

Applied Micro Circuits Corporation [Nasdaq: AMCC] today announced that it has signed a definitive agreement to acquire JNI Corporation [Nasdaq: JNIC]. JNI provides Fibre Channel hardware and software products that form critical elements of Storage Area Networks (SANs).

Under the terms of the agreement, AMCC will pay $7.00 per share in cash for each outstanding share of JNI common stock, a total of approximately $190 million, and will assume all outstanding JNI employee stock options. As of June 30, 2003, JNI's assets included approximately $90 million of cash and investments. The acquisition has been approved by the boards of directors of each company and is subject to the approval of stockholders of JNI Corporation, as well as other customary closing conditions and regulatory approvals. The acquisition is expected to close in the fourth quarter of this calendar year.

"Driven by new broadband applications and the resulting need for a secure, reliable, and scalable storage network, Fibre Channel technology has experienced mass market acceptance. JNI is positioned well in this growing market with an extensive, easy-to-use product line for both Solaris and Windows," said Dave Rickey, chairman, president and CEO of AMCC. "This acquisition significantly extends AMCC's networking silicon technology expertise beyond the Wide Area Network into the high-growth SAN market."

"The merger enables JNI to achieve cost and technology synergies with AMCC that will provide us with the scale necessary to achieve market leadership," said Russell Stern, president and CEO of JNI Corporation. "AMCC brings state of the art silicon infrastructure including physical layer and multi processor design expertise which is highly leveraged in host bus adapters. Combining with AMCC will drive greater value for our customers and enable us to leverage valuable intellectual property."

AMCC Overview

AMCC designs, develops, manufactures, and markets high-performance, high-bandwidth silicon integrated circuits empowering wide area networks. AMCC utilizes a combination of digital, mixed- signal and high-frequency analog design expertise coupled with system-level knowledge and multiple silicon process technologies to offer integrated circuit products that enable the transport of voice and data over fiber optic networks. The Company's system solution portfolio includes switch fabric, traffic management, network processor, framer/mapper, PHY and PMD devices that address the high-performance needs of the evolving intelligent optical network.

AMCC's corporate headquarters is located in San Diego, California. Sales and engineering offices are located throughout the world. For further information regarding AMCC, please visit our Web site at www.amcc.com or call our shareholder information line at (888) 982-AMCC (2622).

JNI Corporation Overview
JNI Corporation is a leading manufacturer of connectivity products for the enterprise data center and the leading provider of Fibre Channel-based host bus adapters (HBAs) for Solaris servers. JNI offers a broad line of Fibre Channel HBAs, InfiniBand Host Channel Adapters, storage ASICs and software. The products operate on Solaris, Windows, HP-UX, AIX and Linux systems. JNI customers, distributors and strategic partners include Acal Electronics, Ltd., Arrow Electronics, Bell Microproducts, Brocade, Chaparral, Crossroads, EMC, Eurologic, GE Access, HP, Hitachi Data Systems, IBM, Info-X, LSI Logic, McDATA, Mellanox, Network Appliance, Nishan Systems, StorageTek, Sun Microsystems, TidalWire and Veritas.

Company headquarters are in San Diego, with offices throughout the U.S., Europe and Asia. For more information, visit the website at www.jni.com.