PMCS (MM)

PMC-Sierra, Inc. (Nasdaq:PMCS) today announced that certain former stockholders of Passave, Inc. who received shares of PMC-Sierra's common stock in connection with its acquisition of Passave plan to sell approximately 18.1 million shares of PMC-Sierra's common stock in an underwritten secondary public offering. PMC-Sierra will not receive any proceeds from this transaction. The sole underwriter for this offering of PMC-Sierra common stock will be Merrill Lynch & Co. The offering will be made only by means of a written prospectus. Interested parties may obtain a prospectus, when available, from Merrill Lynch & Co., 4 World Financial Center, New York, NY 10080, telephone 212-449-1000. This announcement does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which the offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction. 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.