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PMC-Sierra Achieves FTTH Industry Milestone with Four Million FTTH Optical Network Units in Field Deployment

Asia Leads with Volume Deployment of Gigabit EPON in Japan, Major EPON Rollout Commencing in Korea and EPON Field Trials Underway in China

SANTA CLARA, Calif.--(BUSINESS WIRE)--May 31, 2007--PMC-Sierra, Inc. (Nasdaq:PMCS) today announced that its Fiber to the Home (FTTH) solution is now deployed in more than four million Gigabit EPON Optical Network Units (ONUs). This significant industry milestone demonstrates that FTTH is now the preferred technology for Gigabit/s access to the home and business. Gigabit FTTH deployment is outpacing DSL broadband access in Japan (according to the Japanese Ministry of Internal Affairs and Communications), and in Korea, PMC-Sierra and DASAN Networks recently announced a Korea Telecom contract for expected deployment of 800,000 EPON ONUs this year in Seoul. In China, benchmark testing is underway on equipment from three of China's largest equipment vendors based on PMC-Sierra's Gigabit/s EPON silicon, led by China Telecom. In addition, PMC-Sierra recently introduced a solution that meets the ITU-T G.984 specification for GPON Optical Network Terminals (ONTs), targeted for the emerging GPON markets in North America and Europe.

"As the first to reach high volume deliveries, PMC-Sierra is well positioned to be a leader in emerging Gigabit EPON markets such as China, while it continues to grow market share in Japanese and Korean deployments," said Jeff Heynen, directing analyst, broadband and IPTV, at Infonetics. "Based on the deployments to date and the benchmarking and field trials that are currently underway, it seems likely that EPON will be the predominant Gigabit access technology in most of the key Asia markets."

"This is an important benchmark for the FTTH industry as these high volume deployments will drive economies of scale that will lower overall FTTH equipment costs and cost of ownership," said Victor Vaisleib, general manager of the FTTH Business Unit at PMC-Sierra. "And, PMC-Sierra is able to leverage the extensive technology and product base we established from our leadership in the EPON market to successfully enter the emerging GPON markets in Europe and North America."

PMC-Sierra's GigaPASS(TM) FTTH Architecture Delivers Wire-Speed Advantages

A major advantage of the PMC-Sierra EPON and GPON product portfolio is its GigaPASS architecture. The GigaPASS architecture integrates multiple hardware-based packet-processing engine subsystems to deliver wire speed packet processing at all packet sizes, and combines them with a control processor supporting Linux and VxWorks operating systems and extensible middleware platforms. This gives the carrier a flexible and robust platform upon which to build low-cost, gigabit/s customer premise equipment for delivery of triple play (voice, video and data) applications to the consumer.

About PMC-Sierra's FTTH Family of Products

PMC-Sierra is the only supplier to support both EPON (IEEE 802.3ah Ethernet in the First Mile) and GPON (ITU-T G.984) standards. The company's gigabit PON products are based on the robust GigaPASS(TM) FTTH Architecture that achieves sustained gigabit and greater data rates while providing a powerful 32-bit programmable processing engine executing the real-time operating system, middleware, and application-specific firmware required for high performance FTTH network access functions. PMC-Sierra system-on-a-chip solutions provide end-to-end gigabit per second bandwidth solutions linking central office equipment and customer premise equipment. OLT (optical line terminal) devices connect the central office to the PON network and ONU (optical network unit) or ONT (optical network terminal) devices connect customer premises to the PON network. For more information, visit www.pmc-sierra.com.

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 fiber access gateway equipment. 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. For more information, visit www.pmc-sierra.com.

Resources to Extend Your Product Knowledge and Understanding

PMC-Sierra FTTH Products www.pmc-sierra.com/ftth-pon

PMC-Sierra New Products

www.pmc-sierra.com/products/newProducts.html

PMC-Sierra Webinars www.pmc-sierra.com/webinars

(C) Copyright PMC-Sierra, Inc. 2007. All rights reserved. PMC is a registered trademark of PMC-Sierra, Inc. in the United States and other countries. PMC-SIERRA, PMCS, GigaPASS and "Enabling connectivity. Empowering people." are trademarks of PMC-Sierra, Inc. Other product and company names mentioned herein may be trademarks of their respective owners.

CONTACT:
PMC-Sierra, Inc.
Susan Shaw, 604-415-6031
susan_shaw@pmc-sierra.com

or

US Editorial:
Christian Bateman, 415-882-9494
batemanc@loomisgroup.com

or

China Editorial:
Jo Soo, +011 852-2837-4744
jo.soo@edelman.com
or

Japan Editorial:
Toshiyuki Okazaki, +011 81-422-50-1280
okazakit@loomisgroup.com

SOURCE: PMC-Sierra, Inc.