ANADIGICS Reports Record-Breaking Quarter

- Net Sales reach $47.5 Million, up 56% from Year Ago Quarter - Net Income of $6.6 Million and $0.21 EPS, as Gross Margin rises to 51.3%

WARREN, NJ. ANADIGICS, Inc. (Nasdaq:ANAD) today reported record net sales of $47.5 million for the second quarter ended July 2, 2000, a 56% increase over the $30.5 million reported in the second quarter of 1999. Net income for the second quarter was $6.6 million or $0.21 per diluted share, also records for the company, compared with net income (excluding special charges) of $2.0 million or $0.08 per share in the year-ago quarter.

Net sales were up 10.5% sequentially from the $43.0 million reported in the first quarter ended April 2, 2000. Net income and earnings per share increased sequentially 16% and 17%, respectively, from the $5.7 million and $0.18, excluding special items, reported in the 2000 first quarter.

Net sales of $90.5 million for the first half of 2000 rose 63% from the $55.6 million reported in the first half of 1999. Excluding special items, first half 2000 net income of $12.3 million and earnings per share of $0.39 increased 288% and 200%, respectively, from the $3.2 million and $0.13 reported in the 1999 first half.

Second quarter 1999 net income above excludes a special charge for accelerated depreciation of $2.7 million associated with the closing of the four-inch wafer fabrication facility and a provision of $6.9 million for settlement of litigation. Including these special charges, the Company reported a net loss in the 1999 second quarter of $4.1 million or $0.18 per basic share.

"ANADIGICS is well positioned to ride the wave of the ever-expanding communications IC market," said Dr. Bami Bastani, ANADIGICS President and Chief Executive Officer. "Our broadband communications products continue to enjoy double-digit sequential quarter growth and we believe ANADIGICS is the dominant RF IC supplier to the broadband market. We are fortifying our wireless business with a new InGaP HBT power amplifier product line that is targeted to go into production in the first quarter of 2001."

Sales of communications IC products into the wireless, cable and broadcast, and fiber optic markets all contributed to the record quarter, reflecting the continued rapid expansion of these markets and the favorable competitive position of ANADIGICS and its customer base. Sales of wireless products, principally power amplifier ICs for mobile phones, were $25.5 million in the quarter, an increase of 95% from the year-ago quarter and 9% sequentially from the first quarter. Sales of products for the cable and broadcast industry, including ICs for cable set-top boxes, modems, and infrastructure networks, reached $17.0 million, an increase of 61% from the year-ago quarter and 11% sequentially. Fiber product IC sales of $5.0 million declined 27% from the year-ago quarter, but achieved 16% sequential growth, reflecting the strategic repositioning of the product line to serve higher data rate communication applications.

"During the second quarter, ANADIGICS made additional headway in diversifying its customer base, particularly in our broadband businesses," said Dr. Bastani. "I am delighted to say that we have signed up a number of new customers, particularly from the Asian region."

"We believe that our number one customer s first half inventory corrections of GSM phones and issues related to component shortages will result in a mix shift of our product revenues in the second half. The expansion of broadband sales is expected to offset the shift in revenue and earnings.

Gross margin in the quarter of 51.3% increased sequentially from the first quarter by 120 basis points (excluding certain first quarter costs), reflecting the continued leveraging of fixed costs over higher sales volumes. For the same period last year, gross margin was 45.7% (excluding the special depreciation charge). The Company completed the migration to its state-of-the-art, six-inch GaAs RF wafer fabrication facility on September 21, 1999 and is on track for third quarter completion of the expansion of the facility, which will approximately double existing manufacturing clean room capacity.

NEW PRODUCT - InGaP HBT TRANSIMPEDANCE AMPLIFIER (TIA) FOR OC-192 FIBER OPTIC SYSTEMS

ANADIGICS announced a leading-edge 10 gigabits per second transimpedance amplifier (TIA) for use in high-capacity fiber-optic receivers. Since this TIA is manufactured using InGaP heterojunction bipolar transistor (HBT) technology, it is uniquely suited for 10 Gb/s and DWDM applications.

NEW PRODUCT - DUAL-TECHNOLOGY REVERSE AMPLIFIER FOR USE IN INTERNET-ENABLED CABLE SYSTEMS

This high-performance reverse amplifier utilizes both GaAs and Silicon CMOS technology to provide industry-leading performance for high-speed cable modems, CATV interactive set-top boxes, and telephony over cable systems.

HIGHLIGHTS OF THE QUARTER

- Appointments of Barak Maoz as Head of European Operations and Dr. Ali Khatibzadeh as Head of Wireless Power Amplifier Products. Barak Maoz has been appointed to Vice President, Managing Director of European Operations, a newly created position headquartered in the Company s facility in Thames Valley, UK. Mr. Maoz will direct efforts in the highly developed European region.

Dr. Ali Khatibzadeh will be responsible for managing all aspects of ANADIGICS Wireless Power Amplifier business, including the design and development of InGaP HBT power amplifiers and advanced solutions for EDGE (Enhanced Data Rate for GSM and TDMA Evolution) and WCDMA (Wide-band CDMA) wireless digital standards. - Developed Pilot Manufacturing Line for In-House Multi-Chip Module Assembly of HBT Power Amplifiers The development of in-house module assembly enables ANADIGICS to dramatically reduce design cycle times, thereby increasing design cycles of learning and shortening time to market for highly integrated wireless and cable products.

- Teamed with Agilent Technologies to Introduce a Virtual Sampling RF IP Encoder Design Tool The Company is collaborating with Agilent Technologies to introduce a RF IP (intellectual property) Encoder that provides customers with a virtual electronic sample of ANADIGICS wireless, cable, and fiber products. - Began Production Volume Shipments of Power Amplifier Chipsets for Ericsson s Award-Winning A1228d Tri-Mode Phones The Company began production volume shipments of two power amplifiers (PAs) to support Ericsson s award-winning A1228d TDMA mobile phone. This tri-mode, multi-band wireless handset utilizes ANADIGICS high efficiency PAs to deliver up to 4 hours of talk time with a standard ultra slim battery.

ANADIGICS, Inc. (Nasdaq: ANAD) 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, and reduce 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. For more information on ANADIGICS, visit the Company s Web site at www.anadigics.com. 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, 1999. 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, Tel: 908/412-5995 Richard Hantke, Tel: 908/791-6043