Exhibit 99.1

              PMC-Sierra CFO Notifies Company of Intent to Resign
                           after Transitional Period


    SANTA CLARA, Calif.--(BUSINESS WIRE)--July 6, 2006--

         Company's Q2 2006 revenues in-line with prior outlook

    PMC-Sierra, Inc. (Nasdaq:PMCS) today announced that Alan Krock,
Vice President and Chief Financial Officer, has given notice that he
will be leaving the Company for personal reasons following a
reasonable transitional period. Mr. Krock joined the Company in his
capacity as VP Finance and CFO in November 2002.
    The Company is also providing an update to its revenue outlook for
the second quarter of 2006. For the three-month period ending July
2nd, the Company's revenue is expected to be at the mid-point of the
revenue range provided during the Company's webcast conference call on
April 20, 2006 following its first quarter earnings results. At that
time, the revenue outlook provided for the second quarter of 2006 was
$108 million to $112 million, excluding revenues from the acquisition
of Passave Inc. that closed on May 4th, 2006. In addition, it is
expected that PMC-Sierra will receive revenues of approximately $8.5
million to $9.0 million from the Passave acquisition in the second
quarter of 2006.
    Management will be releasing its second quarter 2006 earnings
results on July 20th, 2006 and will provide guidance for the third
quarter of 2006 during a conference call at 1:30 p.m. Pacific Time on
that date. To listen to the call, investors can access an audio
webcast of the conference call on the Financial Events and Calendar
section at http://investor.pmc-sierra.com/.
    A replay of this webcast will be posted and available two hours
after the conference call has been completed. To listen to the
conference call live by telephone, please dial 719-457-2693
approximately 10 minutes before the start time. A telephone replay
will be available 15 minutes after the completion of the call and can
be accessed by dialing 719-457-0820 (replay access code is 9967412). A
replay of the webcast will be available for five business days.

    Safe Harbor Statement

    PMC-Sierra forward-looking statements are subject to risks and
uncertainties. Actual results may differ from these projections. The
second quarter revenue estimates are subject to closing of the
Company's accounting records for the quarter and to review by the
Company's management and auditors. The Company's SEC filings describe
more fully the risks associated with the Company's business including
PMC-Sierra's limited revenue visibility due to variable customer
demands, orders with short delivery lead times and customer
concentration. The Company does not undertake any obligation to update
the forward-looking statements.

    About PMC-Sierra

    PMC-Sierra(TM) is a leading provider of high-speed broadband
communications semiconductors, storage semiconductors and
microprocessors for metro, access, fiber to the home, wireless
infrastructure, storage 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. Tachyon
is a registered trademark of PMC-Sierra, Inc. 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, VP Marketing Communications
             408-988-8276
             or
             Susan Shaw, Manager, Communications
             408-988-8515