ANADIGICS Announces Voluntary Stock Option Exchange Program For Employees; The Program Excludes Board of Directors, and Corporate Officers.

Business Editors

WARREN, N.J.--(BUSINESS WIRE)--May 20, 2002

ANADIGICS, Inc. (Nasdaq: ANAD), a leading supplier of wireless and broadband communications solutions, today announced that its Board of Directors has approved a voluntary stock option exchange program for company employees.

Options held by the company's Board of Directors and Officers are not included in the exchange program.

"Retaining and motivating our employees is critical to ANADIGICS' continued success and our ability to build long-term shareholder value," said Dr. Bami Bastani, President and Chief Executive Officer. "Many of our outstanding options have exercise prices that are significantly higher than the current market price of our common stock. This program balances the need to retain employees and drive the long term success of ANADIGICS."

Under the program, ANADIGICS employees have the opportunity, if they so choose, to cancel outstanding stock options granted at an exercise price of $21.00 or more, in exchange for a new option grant for an equal number of shares. The new options will be issued more than six months after the cancellation date. The exercise price of the new options will be based on the trading price of ANADIGICS' common stock at the time of the grant. Options to purchase approximately 966,018 shares are included in this offer. The options available under this program represent approximately 2.3% of common shares outstanding as adjusted to include shares issuable pursuant to the exercise of outstanding stock options and upon the conversion of debt securities. Complete terms and conditions of the exchange offer are set forth in a Tender Offer Statement on Schedule TO which has been filed with the Securities and Exchange Commission.

The exchange program has been organized to comply with Financial Accounting Standards Board guidelines and accordingly, the Company expects that there will be no material variable compensation charges as a result of this stock option exchange program.

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, 2001. 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.