PMCS (MM)

PMC-Sierra, Inc. (Nasdaq:PMCS) today announced it has completed the acquisition of Passave, Inc., a leading developer of system-on-chip semiconductor solutions for the Fiber To The Home (FTTH) access market. In accordance with the terms of the transaction as announced on April 4th 2006, PMC-Sierra has acquired all of the outstanding shares of Passave in a stock-for-stock transaction valued at approximately $300 million. PMC-Sierra expects to incur normal acquisition-related costs in connection with this transaction, including one-time charges and ongoing amortization related to the acquired business. Passave's semiconductor solutions enable Service Providers to offer so-called "Triple Play" services (voice, video and data) at up to 1Gbps over Passive Optical Networking (PON) equipment. The Passave product line includes system-on-chip solutions for Optical Line Terminals for the Central Office as well as Optical Network Terminals and Optical Network Units solutions for residential termination equipment. Passave has delivered more than two million ONU devices that have been deployed in NTT's Fiber To The Home broadband access network. Safe Harbor Statement PMC-Sierra's forward-looking statements related to the acquisition involve a number of risks and uncertainties. Actual results may differ from projections for varied reasons. Acquisition-related costs may be higher than expected. Both PMC-Sierra's and Passave's financial results can be affected by a wide range of risks detailed in PMC-Sierra's Securities and Exchange Commission filings, including changes in semiconductor market conditions, demand for semiconductor products, the level of orders that are placed and shipped within the quarter, the impact of competitive products and pricing, and technological and product development risks. PMC-Sierra does not undertake any obligation to update the forward-looking statements. About PMC-Sierra PMC-Sierra(TM) is a leading provider of broadband communications and storage semiconductors for metro, access, fiber to the home, wireless infrastructure, storage, laser printers and customer premises equipment. For more information on Passive Optical Networking and fiber to the home semiconductor solutions, visit www.pmc-sierra.com. PMC-Sierra offers worldwide technical and sales support, including a network of offices throughout North America, Europe, Israel and Asia. The company is publicly traded on the NASDAQ Stock Market under the PMCS symbol and is included in the S&P 500 Index. (C) Copyright PMC-Sierra, Inc. 2006. All rights reserved. PMC, PMCS, PMC-Sierra, and "Thinking You can Build On" are trademarks of PMC-Sierra, Inc. All other trademarks are the property of the respective owners.