ANADIGICS Announces New RF Testing Partnership With Universal Communications Technology, Inc.

Business/Technology Editors

WARREN, NJ--(BUSINESS WIRE)--Jan. 29, 2002

ANADIGICS, Inc. (Nasdaq: ANAD)--

New RF Testing Operation in S.E. Asia to enhance ANADIGICS' operational efficiency while reducing manufacturing expenses

ANADIGICS, Inc. (Nasdaq: ANAD), a leading supplier of wireless and broadband communications solutions, today announced an agreement with Universal Communications Technology, Inc. (UCOMM), Taiwan for the outsourcing of its production RF testing operations.

Under the agreement, ANADIGICS will transfer its production RF testing operation closer to the Company's module assembly plant in S.E Asia, which will add considerable efficiencies to ANADIGICS' device manufacturing and further reduce product cycle times and manufacturing costs.

In line with the Company's commitment to the 100 percent RF testing of all modules before shipping, the majority of production testing will now be undertaken by UCOMM and supervised by a number of on-site ANADIGICS staff. All GaAs wafer fabrication will remain at the Company's headquarters in Warren, NJ, along with in-house RF testing and assembly capabilities for fast turnaround of engineering prototypes.

Dr. Bami Bastani, President and CEO of ANADIGICS Inc., reports "This announcement supports our initiative to reduce manufacturing costs thereby enhancing our gross margin by lowering test cost per unit. Today, ANADIGICS' manufacturing operations deliver best-in-class manufacturing cycle times. By transferring our RF testing operation to UCOMM, ANADIGICS will set new benchmarks in the industry for even faster product cycle times."

Tai Hwa Liu, President of UCOMM, added, "We are delighted to work in partnership with an industry leader like ANADIGICS. UCOMM's extensive RF testing operations and ANADIGICS' proven high-volume RF test experience form a unique and highly-competitive competency. I look forward to meeting new challenges as we strive to decrease product turn-around times, enhance quality, and reduce the overall cost per device."

"UCOMM will provide us with a great deal of expertise in the RF testing field. They have a business philosophy and vision that closely matches our own; they are a technology-driven company committed to providing lower manufacturing costs, better turnaround times and high quality products, all backed by a reliable service," adds Alex McCann, ANADIGICS' Vice President of Operations. "At ANADIGICS we are committed to meeting the highest standards for reliability while delivering best-in-class manufacturing cycle times and fast throughput. This relationship with UCOMM will continue our shared traditions of manufacturing excellence, while enabling us to reduce manufacturing costs and enhance operational efficiencies."

About Universal Communication Technology, Inc.(UCOMM)

Universal Communication Technology, Inc.(UCOMM), an industry leader in subcontract RF test, is located in Hsinchu Science-Based Industrial Park, Taiwan. UComm focuses on full turn-key RF testing, from wafer-level test through IC/module testing, to tape and reeling and drop shipment to final destinations. UComm was the first independent RFIC testing facility to achieve high volume RFIC test in Asia, and continues to lead through extensive investment in ATE (Automated Test Equipment) and bench test equipment to address the needs of RF and Wireless semiconductor companies world-wide.

About ANADIGICS

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-K for the year ended December 31, 2000. Actual results could differ materially from the Company's forward-looking statements. 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, including the statements in this press release regarding revenue expectations, cost reduction initiatives, product sampling and strategic alternatives, are forward-looking statements.