Anadigics Reports Third Quarter 2001 Results

Better-Than-Anticipated Revenue of $16.3 million and Adjusted EPS Loss of $0.52

Warren, NJ. ANADIGICS, Inc. (Nasdaq: ANAD) today reported net sales of $16.3 million and a loss (excluding special charges and amortization of intangibles) of $0.52 per share for the third quarter ended September 30, 2001.
These results were better than anticipated, driven by further strength in sales of wireless CDMA power amplifiers and improved gross margin. Net sales were $51.1 million in the third quarter of 2000.

The Company is on track with the actions announced on September 10th to reduce manufacturing costs and to reduce operating expenses 30% by the first quarter 2002 through workforce reductions and consolidation of facilities. In the third quarter, special charges of $5.7 million were recorded, including cash-related charges of $1.2 million resulting from a reduction in workforce and non-cash-related charges of $4.5 million resulting from the write-down of impaired assets. Including these special charges and amortization of intangibles, the net loss for the third quarter was $22.4 million or $0.74 per share.

We are pleased to announce better than expected revenue and EPS for the third quarter, due to the growth of our wireless business. We believe that the third quarter is the bottom and expect fourth quarter revenue growth, especially in our wireless business where we expect year over year fourth quarter revenue growth of over 50%, remarked Dr. Bami Bastani, President & Chief Executive Officer of ANADIGICS. ``We are confident in our fourth quarter outlook since we are currently more than 90% booked to realize 10% sequential quarterly revenue growth.
In the third quarter, wireless product line revenues were $6.1 million, cable product line revenues were $7.8 million, and fiber product line revenues were $2.4 million.

The growth of our wireless business is a direct result of the strength of our product portfolio which addresses all major digital standards, including CDMA, TDMA, and GSM, continued Dr. Bastani. Our strategy to aggressively target the CDMA handset market, which is the fastest growing sector of the wireless market, is paying off and we are shipping over 1 million CDMA modules per month. Our investment in InGaP HBT technology has positioned us well for the needs of 1xRTT, CDMA2000 and wide-band CDMA standards. ANADIGICS is positioned to continue to gain new customers and increase market share with leading products.
The Company s balance sheet remains strong, with cash and marketable securities totaling $110 million at September 30, 2001.

OUTLOOK Fourth quarter revenues are expected to increase to a range of $18.0 million to $18.5 million, including wireless revenues growing sequentially by greater than 80%, reflecting the ramp of the Company s new CDMA customers and new TDMA platforms. The expected EPS loss ranges from $0.45 to $0.47. The Company continues to target a return to profitability during the second half of 2002.

ANADIGICS will conduct a mid-quarter update via conference call on December 10, 2001.
HIGHLIGHTS OF THE QUARTER DESIGN WIN - CATV Tuner ICs for Samsung

On July 25, 2001, the Company announced production orders for CATV tuner ICs from Samsung for use in their digital set-top box for the Asian market. Samsung s DVB- RC set-top box will utilize the ACU2109 Upconverter and ACD2202 Downconverter with Dual Synthesizer to provide a high performance, double conversion RF tuner solution.
NEW PRODUCT - CDMA Power Amplifier Module for Korean Marketplace On October 8, 2001, the Company introduced a CDMA Power Amplifier Module designed specifically for Korean PCS-band wireless handsets. The AWT6109 is a new 3.5-volt high efficiency, linear, power amplifier module, compliant with all IS95/98 and 1XRTT CDMA system specifications.
NEW PRODUCT - Gain Block Amplifiers for Infrastructure Systems
On September 25, 2001, the Company announced the launch of the first in a new product line of Gain Block Amplifiers designed for use in environments requiring very high linearity, low noise and low distortion. The AGB3301 is ideal for transmit and receive paths in 50 wireless applications, such as Cellular Base Stations, WLL and MMDS, all of which require highly linear components.

NEW PRODUCT - Downconverter with Dual Synthesizer On August 2, 2001, the Company introduced a Downconverter with Dual Synthesizer integrated circuit. Engineered to deliver superior performance at low cost for a variety of CATV, television and video applications, the ACD2202 leverages both GaAs (Gallium Arsenide) and CMOS (Complementary Metal Oxide Semiconductor) technology to offer a unique combination of features for set-top boxes, CATV tuners, and cable modems. This product facilitates the design of cost-efficient double-conversion tuners by integrating an LNA (Low Noise Amplifier), a balanced mixer, the active circuits for a local oscillator, and a dual synthesizer into one convenient surface-mount package.

NEW PATENT AWARD - Wireless Power Amplifier On September 19, 2001, the Company announced that it had been awarded a patent for a newly designed GaAs (Gallium Arsenide) multi-band amplifier. The patent, U.S. Patent No. 6242986 entitled Multiple-Band Amplifier , is the second to be granted to ANADIGICS for this amplifier circuit. This circuit has been designed for use in the wireless communications sector at either the 800 MHz or the 1900 MHz band.

CONFERENCE CALL ANADIGICS senior management will conduct a conference call today at 8:30 AM Eastern time. A live audio Webcast will be available at . A recording of the call will be available from approximately two hours after the call until October 29 on the ANADIGICS Web site or by dialing (402) 220-9185. ANADIGICS, Inc. (Nasdaq: - ) 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-K for the year ended December 31, 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.

Contact: ANADIGICS, INC., Warren Thomas Shields Tel: 908/412-5995 Chief Financial Officer or Richard Hantke Tel: 908/791-6043 Director, Investor Relations or Media Contact: Tim Blanke Tel: 908/668-5000 ext. 5735 Corporate Communications Mgr.