Alpha Industries Announces Record Fourth Quarter and Fiscal Year Results

Net Sales for Quarter Up 66 Percent Year-Over-Year, Up 20% Percent Sequentially; Pre-tax Income For Quarter Doubles Year-Over-Year Net Sales for Quarter Up 66 Percent Year-Over-Year, Up 20% Percent Sequentially;

Woburn, MA.

ALPHA INDUSTRIES, INC. (NASDAQ:AHAA) today announced record financial results for the fiscal quarter and year ended April 2, 2000.

For the quarter, net sales were $56.9 million, up 66% compared with $34.3 million for the same period last year and 20% sequentially. Operating income for the quarter was $9.7 million, up 74% over the year ago quarter, resulting in earnings per share of $0.20. New orders received in the quarter totaled $63.3 million, compared with $36.4 million for the same period last year.

For the quarter, the Company s Wireless Semiconductors segment had sales of $37.1 million and generated $6.2 million in operating profit at a 45.3% gross margin. Ceramic Products had sales of $11.5 million and generated $1.7 million in operating profit at a 36.6% gross margin. Application Specific Products (ASP) had sales of $8.3 million and generated $1.8 million in operating profit at a 49.8% gross margin. For the year, net sales were $184.7 million, up 46% compared with $126.3 million for the prior year. Operating income for the year was $30.9 million, up 58% over the prior year, resulting in earnings per share for the year of $0.61.

For the year, Wireless Semiconductors had sales of $118.8 million and generated $18.8 million in operating profit at a 44.8% gross margin. Ceramic Products had sales of $36.1 million and generated $4.6 million in operating profit at a 35.8% gross margin. ASP had sales of $29.9 million and generated $7.5 million in operating profit at a 51.8% gross margin.

"Explosive growth in the market for wireless voice and data communications and broadband Internet access is pushing demand for our products to new levels," said David Aldrich, Alpha s president and newly elected chief executive officer. "We see the accelerated growth in demand continuing across our markets for this year and beyond. Alpha participates in all the right markets, and we are strengthening our position as a technology leader." "Our dominant Wireless Semiconductor Products segment grew 80% last year, substantially faster than the overall increase in sales of wireless handsets," said Aldrich. "We are gaining share in this huge market, even as we expand into new and emerging markets. New HBT products from our acquisition of Network Device, as well as our newly released multi-chip and high performance GaAs ICs, will enable us penetrate new customers, new applications and new markets. We expect this to be another record year for Alpha with continued growth in both sales and profits."

Tom Leonard, Alpha s new chairman, stated, "Fiscal 2000 was a year of record-breaking growth for Alpha, as we focused on outstanding performance in the markets that matter most. We continued to provide the products and support that the major wireless handset OEMs demand. We generated dramatic sales growth in the new markets for broadband access, which provide Internet, telephone and television service to homes and businesses. We gained a new fab, a world-class GaAs HBT process and a very talented design team in Silicon Valley. This hard work and clear focus has positioned Alpha for continuing growth in a wide range of wireless and broadband markets."

About Alpha

Alpha Industries designs and manufactures a broad range of products for microwave and radio frequency wireless communications applications. The Wireless Semiconductor segment provides gallium arsenide (GaAs) integrated circuits and other semiconductors to the dynamic global market for wireless telephone handsets. The Ceramic Products segment provides technical ceramic products for wireless telephony infrastructure and other wireless markets. The Application Specific Products (ASP) segment provides a broad range of GaAs and silicon devices to satellite, instrumentation, defense and other communications markets. Alpha has a workforce of over 1,000 employees in Massachusetts, California and Maryland. Additional information is available at Alpha s website - www.alphaind.com.

Safe Harbor Statement

Safe Harbor Statement - Except for the historical information contained herein, this news release contains forward-looking statements that constitute the Company s current intentions, hopes, beliefs, expectation or predictions of the future which are, therefore, inherently subject to risks and uncertainties. The Company s actual results could differ materially from those anticipated in the Company s forward-looking statements based on various factors, including without limitation: cancellation or deferral of customer orders, dependence on a small number of large customers, difficulties in the timely development and market acceptance of new products, market developments that vary from the current public expectations concerning the growth of wireless communications, difficulties in manufacturing new or existing products in sufficient quantity or quality, increased competitive pressures, decreasing selling prices for the Company s products, or changes in economic conditions. Further information on factors that could affect the Company s performance is included in the Company s periodic reports filed with the SEC, including but not limited to the Company s Form 10-K for the year ended March 28, 1999, and subsequent Forms 10-Q. The Company cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any such statements to reflect any change in the Company s expectations or any change in events, conditions or circumstance on which any such statement is based.

Contact:
Alpha Industries, Inc.
James C. Nemiah, Investor Relations
(617) 824-4426 Alpha Industries, Inc.
James C. Nemiah, Investor Relations
(617) 824-4426
Web site: http://www.alphaind.com