THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Applied Micro Circuits Corporation (AMCC)

7/11/2005 Proxy Information

During fiscal 2005, the Company chartered aircraft from a charter company for business travel purposes by Company personnel. Often times the particular aircraft that the Company chartered was owned by a company that Mr. Rickey controlled. In fiscal 2005, the Company paid approximately $194,211 to charter this particular aircraft. The Company believes these payments were equal to the charter fees that would have resulted from an armÕs length transaction. The Company has discontinued this practice.

The Company has entered into indemnification agreements with its officers and directors containing provisions that may require the Company, among other things, to indemnify its officers and directors against certain liabilities that may arise by reason of their status or service as officers or directors (other than liabilities arising from willful misconduct of a culpable nature) and to advance their expenses incurred as a result of any proceeding against them as to which they could be indemnified.

The Company believes that all of the transactions set forth above were made on terms no less favorable to the Company than could have been obtained from unaffiliated third parties. All future transactions between the Company and its officers, directors, principal stockholders and affiliates will be approved by a majority of the Board, including a majority of the independent and disinterested outside directors on the Board, and will be on terms no less favorable to the Company than could be obtained from unaffiliated third parties.

Prior to August 2000, Mr. Smullen served as Chairman of Applied Micro Circuits from October 1982 and Acting Vice President of Operations from August 1997 through October 1997 and was Chief Executive Officer from April 1983 until April 1987.

7/16/2004 Proxy Information

From time to time, the Company charters an aircraft for business travel purposes by Company personnel from an aircraft charter company. The aircraft is owned by a company that Mr. Rickey controls. The Board of Directors has limited such charters to company-related business at rates not to exceed market prices, up to a maximum of $800,000 in fiscal 2003. In fiscal 2003, the Company paid approximately $755,431 to the aircraft charter company, which the Company believes was equal to the charter fees that would have resulted from an armÕs length transaction.

The Company has entered into indemnification agreements with its officers and directors containing provisions that may require the Company, among other things, to indemnify its officers and directors against certain liabilities that may arise by reason of their status or service as officers or directors (other than liabilities arising from willful misconduct of a culpable nature) and to advance their expenses incurred as a result of any proceeding against them as to which they could be indemnified.

The Company believes that all of the transactions set forth above were made on terms no less favorable to the Company than could have been obtained from unaffiliated third parties. All future transactions between the Company and its officers, directors, principal stockholders and affiliates will be approved by a majority of the Board, including a majority of the independent and disinterested outside directors on the Board, and will be on terms no less favorable to the Company than could be obtained from unaffiliated third parties.