PMCS (MM)

PMC-Sierra, Inc. (Nasdaq:PMCS) today announced an underwritten secondary public offering of 18.1 million shares of its common stock priced at $11.55 per share. All of the shares are being sold by former stockholders of Passave, Inc. who received shares of PMC-Sierra's common stock in connection with its acquisition of Passave. PMC-Sierra is not selling any shares and will not receive any proceeds from this transaction. The sole underwriter for this offering of PMC-Sierra common stock is Merrill Lynch & Co. The offering is being made only by means of a written prospectus. Interested parties may obtain a prospectus 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 is a registered trademark of PMC-Sierra, Inc. in the United States and other countries. PMC-SIERRA, PMCS and "Thinking You can Build On" are trademarks of PMC-Sierra, Inc. Other product and company names mentioned herein may be trademarks of their respective owners.