ANADIGICS Comments on Fourth Quarter 2000 and Calendar Year 2001 Outlook

Warren, NJ. ANADIGICS, Inc. (Nasdaq: ANAD), a leading supplier of wireless and broadband communications solutions, today commented on fourth quarter, 2000 and the outlook for fiscal year 2001. Revenue and earnings will be lower than prior guidance, reflecting continuing changes in the communications markets, further inventory corrections at major customers, and a slower than expected volume production ramp of the Company s newly introduced HBT PA products. The Company anticipates a resumption of strong growth in the second half of 2001.

Revenues for the fourth quarter are estimated to be $31 million with an approximate loss per share of $0.03. At present, first quarter revenues are estimated to be $34 million, with an approximate loss per share of $0.03. Revenues for the full year 2001 are estimated to be $181 million, with approximate earnings per share of $0.20. The Company anticipates gross margin for the year 2001 of 40%, attributed to lower fab utilization and a richer mix of module products. The Company continues to invest aggressively to develop, promote, and sell its portfolio of leadership products.

The Company s broadband business remains strong with 35% growth expected in 2001. Numerous design wins in 2000 in cable modem, set-top box, and cable infrastructure products, as well as production ramp of OC-192 and introduction of OC-768 fiber optic products are driving broadband revenue. In addition, the PicoTuner™, which was announced in October, is expected to enter production in second half, 2001 and is intended to be the launching point for multiple derivative products for voice, video, and data applications.

ANADIGICS remains bullish on the future. Design wins for GSM InGaP HBT power amplifier modules announced in 2000 are gaining traction. Additionally, the Company continues to make progress at several Asian customers for CDMA HBT PA modules. These products are expected to begin producing revenue in the first half of 2001 and are estimated to generate 50% of second half wireless revenues. The introduction of HBT products has enabled the Company to expand its wireless customer base and refocus its engineering resources on the development of new highly integrated transmit products. These new developments take advantage of ANADIGICS extensive IP portfolio including HBT power amplifiers, pHEMT switches, and advanced packaging technology.

"We view 2001 as the year to secure a substantial number of new sockets with all the new products introduced in 2000," remarks Dr. Bami Bastani, President & Chief Executive Officer of ANADIGICS. "In addition to HBT PA modules, we intend to aggressively promote and ship such products as the PicoTuner™, new CATV subscriber and infrastructure products, several new fiber optic OC-192 products and our first OC-768 TIA. Design wins expected from these products, coupled with an array of new product introductions in 2001, are expected to fuel growth in 2002 and beyond".

ANADIGICS senior management will conduct a conference call today at 9:00 AM Eastern time. A live audio Webcast will be available at www.streetevents.com. A recording of the call will be available on the ANADIGICS website or by dialing (800) 642-1687 (passcode 952990).

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.

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-Q for the quarter ended September 30, 2000. 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.

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.

Contact: Press Contacts: Richartz Fliss Clark & Pope Debra Norman/Allan Fliss Tel: 973/627-8180 Fax: 973/627-8410 E-mail: norman@rfcp.com or Corporate Contact: ANADIGICS, Inc. Tim Blanke Tel: 908/668-5000 Fax: 908/668-5132 E-mail: tblanke@anadigics.com or Investor Relations: ANADIGICS, Inc Rich Hantke Tel: 908/668-5000 Fax: 908/668-5132 E-mail: rhantke@anadigcs.com