Exhibit 99.1

                     PMC-Sierra Provides Update on
  Acquisition of Storage Semiconductor Business and Reaffirms First
                    Quarter 2006 Business Outlook

    SANTA CLARA, Calif.--(BUSINESS WIRE)--Feb. 27, 2006--PMC-Sierra,
Inc. (NASDAQ:PMCS), a leading provider of broadband communications and
storage semiconductors, is today providing an update regarding its
First Quarter 2006 business outlook and the status of the closing of
its acquisition of the storage semiconductor business of Avago
Technologies.
    The Company's revenue in the First Quarter of 2006 is expected to
be consistent with the business outlook provided during its Fourth
Quarter 2005 earnings conference call on January 25th, 2006. The
business outlook provided at that time estimated that revenues would
be in the range of $78 to $80 million in the First Quarter of 2006
(excluding any revenues from the acquisition of the storage
semiconductor business).
    Regarding the acquisition of the storage business from Avago
Technologies, the Company expects the transaction to close on or
before March 1st, 2006. On October 30th 2005, PMC-Sierra announced
that it had entered into an agreement to purchase the former storage
semiconductor business of Agilent Technologies from Avago Technologies
Pte. Limited, an entity created by Kohlberg Kravis Roberts & Co. and
Silver Lake Partners.
    Management will be hosting a webcast conference call today at 1:30
p.m. Pacific time that will be accessible on the Company's website
under the Financial Events and Calendar section at
http://investor.pmc-sierra.com/. To listen to the conference call live
by telephone, dial (719) 457-2622 approximately ten minutes before the
start time. A telephone playback will be available after the
completion of the call and can be accessed at (719) 457-0820 using the
access code 4800961. A replay of the webcast will be available for
five business days.

    Safe Harbor Statement

    PMC-Sierra's forward-looking statements involve risks and
uncertainties. Actual results may differ from projections for varied
reasons, 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, technological and product development risks, and other risk
factors relating to PMC's business detailed in the Company's
Securities and Exchange Commission filings. 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 enterprise, access, metro, storage,
wireless infrastructure, laser printers and customer premises
equipment. The company offers worldwide technical and sales support,
including a network of offices throughout North America, Europe 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.

    (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.



    CONTACT: PMC-Sierra, Inc.
             Alan Krock, Vice President & CFO
             408-988-1204
             or
             David Climie, Director, Corp. Comm. and I.R.
             408-988-8276
             or
             Susan Shaw, Manager, Communications
             408-988-8515