ANADIGICS Announces Record Sales and Profits for Fourth Quarter: Net Sales Up 78% Over Fourth Quarter 1998 on 149% Rise in Wireless Sales

WARREN, N.J. Quarterly Net Income Hits $4.4 Million, $0.22 EPS

ANADIGICS, Inc. (Nasdaq:ANAD) today announced record net sales of $40.1 million for the fourth quarter ended December 31, 1999. Net sales rose 78% over the $22.6 million reported in the fourth quarter of the previous year. Net income for the fourth quarter was $4.4 million or $0.22 per diluted share compared with a net loss in the year-ago quarter.

Net sales were up 13% sequentially over the $35.5 million in net sales reported in the third quarter of 1999. Net income in the 1999 fourth quarter increased 83% to $4.4 million over the $2.4 million or $0.15 per diluted share (excluding special charges) recorded in the 1999 third quarter.

Net sales for full-year 1999 of $131.1 million were a record high for the Company, reflecting a 52% increase over 1998 net sales of $86.1 million. Net income for full-year 1999 excluding one-time special charges was $11.6 million or $0.69 per diluted share. This compares with a net loss for 1998 of $199,000, or $0.01 per basic share, excluding one-time special charges.

"This was a year of tremendous success for ANADIGICS," said Dr. Bami Bastani, ANADIGICS President and Chief Executive Officer. "Our growth was fueled by a very strong wireless handset market that drove increased demand for our power amplifiers. The introduction of our new 3-volt HBT power amplifiers and RF switches positions ANADIGICS to capture an even larger share of this growing market in the future."

Cable, wireless and fiber all contributed to this successful year. For the full year, wireless products led with a 77% year-over-year increase, and 44% sequential growth on stronger than expected sales in both Europe and the United States. Cable products rose 38% year-over-year and 7% sequentially. Fiber products yielded 33% year-over-year growth.

Gross margin continued to show both year-over-year and sequential improvement. For the quarter, gross margin was 48.1%, up 130 basis points sequentially over the 46.8% reported last quarter. For the same period last year, gross margin was 32.8%, excluding one time special charges. The sequential improvement was primarily attributable to the Company s migration to its 6-inch GaAs fab. On September 21, 1999 the Company successfully transitioned from its previous 4-inch fabrication facility to its state-of-the-art 6-inch fab.

"We added significant depth and breadth to our technological expertise," said Dr. Bastani. "We continue to reach new levels of success in our relationships with well-established customers, including Ericsson, Motorola and Scientific-Atlanta. We recently launched our new 24-volt line amplifier and tuner IC for the cable market. These developments and our plans to approximately double current production capacity at our 6-inch fab set the stage for ANADIGICS to advance to new levels of competition--and to win."

DESIGN WIN FOR RF SWITCHES IN CDMA PHONE

ANADIGICS has been added to the preferred supplier list for RF switches by a world-leading US manufacturer of CDMA handsets. The Company has received its first high-volume production order from this customer for the single-supply 3-volt RF switches with shipments commencing in Q1 2000.

THREE-FOR-TWO STOCK SPLIT

In a separate release today, the Company announced that its Board of Directors has declared a three-for-two stock split in the form of a stock dividend. The record date for the stock split is February 10, 2000 and the effective date is February 29, 2000.

HIGHLIGHTS OF THE QUARTER

- 3-Volt HBT PA samples shipped to wireless customers. The Company announced the shipment of its first high-efficiency InGaP HBT power amplifier samples to major wireless handset manufacturers. The introduction of these HBT power amplifiers more than doubles the available market for ANADIGICS wireless products.

- Launch of world s first 6-inch InGaP HBT wafer fab. ANADIGICS achieved its goal of internal InGaP HBT (indium gallium phosphide heterojunction bipolar transistor) process capability. The Company began InGaP HBT wafer manufacturing in addition to GaAs MESFET and PHEMT wafer production at its 6-inch manufacturing facility.

- 3Volt tri-mode dual-band PA driver/3Volt PA introduced. The Company announced a new single supply 3V Power Amplifier and a Power Amplifier driver that meet the requirements for higher integration, smaller sized packages, lower costs, and lower power consumption in advanced dual-band multi-mode phones.

- Power Amplifier patent awarded. ANADIGICS was granted another US patent for its single-chip power amplifier (PA) architecture. The Company has been awarded a total of 18 patents and has five patents pending.

- New DOCSIS-compliant integrated tuner enables high-speed data, video, and voice over cable. ANADIGICS introduced a low power, high performance integrated data tuner that conserves valuable printed circuit board real estate while enabling high-speed data, video, and voice over cable. It features one of the lowest power consumption available in an integrated tuner for cable set-top, cable modem, and cable telephony applications.

- ANADIGICS passes 1 million milestone in shipments of tuner ICs to Motorola. The Company announced that in 1999, it shipped more than 1 million GaAs QAM tuner ICs for implementation in Motorola s cable modem products. ANADIGICS DOCSIS-compliant 64/256 QAM chipset performs the functions of a double-conversion cable television tuner, features industry-leading linearity and noise figure, and delivers a superior bit-error-rate than discrete single or double conversion solutions over a wide dynamic range.

- Design centers open in California and the UK. ANADIGICS expanded its Wireless and Cable design capacity and strengthened its ability to deliver leading-edge RFIC solutions with the opening of its second and third remote design centers.

ANADIGICS designs and manufactures radio frequency integrated circuit (RFIC) solutions for growing broadband and wireless communications markets. The Company s innovative high frequency RFICs enable manufacturers of communications equipment to enhance overall system performance, manufacturing cost, and time to market. By utilizing state-of-the-art manufacturing processes for its RFICs, ANADIGICS achieves the high-volume, and cost-effective products required by leading companies in its targeted high-growth communications markets. ANADIGICS was the first GaAs IC manufacturer to receive ISO 9001 certification.

Except for historical information contained herein, this press release contains forward-looking statements that involve risks and uncertainties, including, but not limited to, order rescheduling or cancellation, changes in estimated product lives, timely product and process development, individual product pricing pressure, variation in production yield, difficulties in obtaining components and assembly services needed for production of integrated circuits, change in economic conditions of the various markets the Company and its customers serve, as well as other risks detailed from time to time in the Company s reports filed with the Securities and Exchange Commission, including the report on Form 10-K for the year ended December 31, 1998. Forward-looking statements can generally be identified as such because the context of the statement will include words such as the Company "believes", "anticipates", "expects", or words of similar import. Similarly, statements that describe the Company s future plans, objectives, estimates, or goals are forward-looking statements.

CONTACT:
ANADIGICS, Inc. Thomas Shields, Chief Financial Officer, 908/412-5995
Andrew Savadelis, Treasurer, 908/412-5600 x 5339
Morgen-Walke Associates, Inc.
Press: Robert Ingram, 212/850-5600