Vitesse Semiconductor Corporation Announces Acquisition of Versatile Optical Networks

Camarillo, CA. Vitesse Semiconductor Corporation (NASDAQ:VTSS) ("Vitesse" or the "Company") announced today that it has agreed to acquire Versatile Optical Networks, Inc. ("Versatile").

Versatile, headquartered in San Jose, California, designs and manufactures optical and optoelectronic modules to create integrated system and subsystem solutions for data and communications networks. Versatile has developed an innovative approach that relies on a multi-level, building-block architecture for integrating optical and OEO (optical-to-electrical-to-optical) solutions. Initial products include optical switches, transponders and transponder arrays. Versatile s expertise in micro-optic and integration technology and network architecture provides OEMs with leading-edge products optimized for performance, cost, versatility, density and reliability. Versatile has 72 employees, including over 55 engineers. For more information, visit Versatile s Web site at www.versonet.com.

In connection with the acquisition, Vitesse will issue approximately 10 million shares of its common stock in exchange for all of the outstanding equity interests of Versatile. The transaction is expected to be completed in the quarter ending September 30, 2001, subject to customary closing conditions. The transaction, which will be accounted for as a purchase, is expected to be dilutive to Vitesse s earnings per share on a pro-forma basis by approximately $0.02 per share per quarter for the remainder of calendar 2001.

Vitesse President and Chief Executive Officer, Lou Tomasetta, said, "The Versatile acquisition brings a great team with opto-mechanical design and manufacturing experience. Combined with Vitesse s strengths in analog and physical layer ICs and our emerging Indium Phosphide manufacturing capability, we will now be one of the best positioned communications component suppliers. We can now provide our customers a complete solution of communication components from the fiber to the backplane."

"We are very excited to be joining the Vitesse team," said Amit Jain, co-founder and president of Versatile. "Vitesse is a supplier to virtually all our prospective customers and we believe that its financial, marketing and sales resources will help us accelerate delivery of our optical subsystems and provide the highest quality customer support."

"This is tremendously exciting to me as an engineer," said Roger Hajjar, co-founder and CTO of Versatile Optical Networks. "The semiconductor component of optical systems is large and growing. Having access to Vitesse s world class semiconductor expertise will help position us to increase levels of opto-electronic integration and to increase the intelligence and manufacturability of our subsystems."

Vitesse will be hosting a conference call today at 2 p.m. PDT to discuss this acquisition. A live audio of the call will be accessible to the public by calling 888-273-9890. No access code is required for the live call. A replay of the call will be available for 5 days following the call and can be accessed by calling 800-475-6701, access code 589847. Vitesse Semiconductor Corporation is a leading designer and supplier of innovative, high-performance integrated circuits (ICs) used in next generation networking and optical communications equipment. In concert with its broad communications product portfolio, Vitesse also develops ICs for storage area networking and enclosure management. The Company s products address the needs of Enterprise, Access, Metro, Core, and Optical Transport network equipment manufacturers who demand a robust combination of high speed, high service delivery and low power dissipation in their components. Vitesse is headquartered in Camarillo, CA, and operates two fabrication facilities in Camarillo and Colorado Springs, CO. Company and product information can be found on the Web at www.vitesse.com or is available by calling 1-800-VITESSE.

This press release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the anticipated completion of our acquisition of Versatile, the effect of the acquisition on our operating results and our prospects following the acquisition. Our actual results could differ materially from our forward looking statements for a variety of reasons, including risks associated with acquisitions, difficulties in retaining key personnel and competition in our markets. For a discussion of these and other factors that could cause our results to differ materially from our forward looking statements, please read the documents we file from time to time with the Securities and Exchange Commission, including our Annual Report of Form 10-K for the year ended September 30, 2000 and our Quarterly Report on Form 10-Q for the three months ended March 31, 2001.

Contact: Vitesse Semiconductor Corporation Eugene F. Hovanec Tel: 805/388-3700