ANADIGICS Announces Strategic Relationship and Equity Investment in EMBEDDED WIRELESS DEVICES INC.

Business and High-Tech Editors

WARREN, N.J.--(BUSINESS WIRE)--Aug. 30, 2000

The two companies will provide full RF and baseband solutions

into the wireless networking market

ANADIGICS, Inc. (Nasdaq: ANAD), a leading supplier of wireless and broadband communications solutions, and EMBEDDED WIRELESS DEVICES INC, an innovative developer of highly integrated wireless Product-on-Chip(TM) solutions, today announced that they have entered into a strategic relationship. As part of the agreement, ANADIGICS has made a strategic investment to hold a minority equity position in EMBEDDED WIRELESS DEVICES INC, and the two companies agreed to cooperate on the development of future wireless products.

By combining ANADIGICS' radio frequency technology with EMBEDDED WIRELESS DEVICES' baseband and voice processing capabilities, the two companies plan to develop complete wireless multi-point total product solutions, enabling OEMs to speed new products to growing markets. Applications for these solutions include information & Internet appliances, wireless communications, and wireless home networking.

"The home of the future will be served by a broadband pipe containing entertainment, data, and voice information. The distribution of this information in the home using wireless networking techniques is favored by many of the residential gateway advocates." remarked Tom Lagatta, Vice President of Marketing at ANADIGICS, Inc. "EMBEDDED WIRELESS DEVICES INC has developed the most innovative solution for baseband processing in wireless networking applications and complements ANADIGICS RF expertise. Our investment in EWD opens the way for joint development of leading solutions for the wireless networking markets."

Wireless networking standards, including Bluetooth, 802.11a/b, HyperLan and HomeRF, are offering the consumer flexibility in connecting many disparate devices such as the home PCs, PDAs, cellular telephones, cable set-top boxes, digital cameras, and many other devices. These high volume consumer markets require complete products that address performance requirements, cost constraints, ease-of-use, and time-to-market concerns for portable device manufacturers. ANADIGICS' and EMBEDDED WIRELESS DEVICES INC's leading competencies in RF products and packaging, baseband processing, and system software will accelerate the availability of advanced wireless networking solutions beginning with a highly integrated Bluetooth product.

"At EWD, we believe that the future of wireless networking requires Product-on-Chip or PoC(TM). In addition to the radio, wireless solutions require a baseband processor (DSP and microprocessor), Flash memory and a complete set of protocol stacks" said Sean T. Marzola, President & CEO of EMBEDDED WIRELESS DEVICES INC. "By combining our highly integrated baseband processor and software stacks with ANADIGICS' RF products and integration expertise, we expect to deliver the most advanced and highly integrated solutions available for wireless communications & wireless networking applications."

About EMBEDDED WIRELESS DEVICES INC:

EMBEDDED WIRELESS DEVICES INC, a fabless semiconductor and technology company, develops and markets the most optimized total solutions in silicon for wireless, audio & internet applications. These technological advancements enable such applications as wireless PBX, wireless home networking, wireless communications, PDAs, VoIP devices, MP3 players/recorders, internet appliances, etc. The company's complete solutions consisting of digital and analog components and complete on-chip software shorten product development cycles and significantly reduce of the product's complexity and overall cost. Core competencies include wireless/Internet applications and protocols, multiple programmable basebands, multitasking architectures, digital signal processing, flash memory addressing, and power/battery management. Founded in 1995 EWD is a privately held company headquartered at 5200 Franklin Drive, Pleasanton, CA, 94588. For more information on EWD, visit the company's Web site at http://www.embeddedwireless.net.

About ANADIGICS:

ANADIGICS (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, 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 http://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.