ANADIGICS REPORTS RECORD SECOND QUARTER SALES; Net Sales Up 27% to $15.9 Million; Earnings per share $0.24 vs. $0.18.

WARREN, N.J.--(BUSINESS WIRE)--July 23, 1996--ANADIGICS, Inc. (Nasdaq: ANAD) today reported record net sales for the second quarter ended June 30, 1996. Net sales for the 1996 second quarter increased 27% to $15.9 million compared to 1995 second quarter net sales of $12.5 million. Net income rose 45% to $2.1 million and earnings per share increased 33% to $0.24 per share on an 11% increase in weighted average shares outstanding. In the second quarter of 1995 net income totaled $1.4 million, or $0.18 per share.

For the six months ended June 30, 1996, net sales rose 26% to $29.4 million and net income increased 65% to $3.8 million. In the first half of 1995 net sales totaled $23.4 million and net income was $2.3 million. Earnings per share for the 1996 six-month period increased 32% from $0.34 per share to $0.45 per share on 25% more weighted average shares outstanding.

Ronald Rosenzweig, President and Chief Executive Officer, commented, "We are pleased with the revenue growth we achieved this quarter in comparison to both the year-ago quarter and the first quarter of 1996. We are particularly pleased by the fact that net sales increased 17% over the first quarter of 1996, with all four of our major market areas, CATV, DBS, Fiber Optics and Wireless Communications, contributing to the increase."

Mr. Rosenzweig continued, "We have said that 1996 would be a year of expansion of our presence in the cellular and PCS markets, with a major focus on the established and emerging digital standards. We made some significant advances in this regard in the second quarter, both through the addition of new customers and the introduction of new products for these standards."

During the quarter ANADIGICS reached a milestone by achieving a delivery rate of 100,000 GSM power amplifier integrated circuits ("ICs") per month. Secondly, the Company began production of its first 4.8 volt GSM power amplifier ICs for a major cellular telephone manufacturer. Further, a new ANADIGICS' power amplifier IC has been designed into the CDMA-1900 telephone for the U.S. PCS market in addition to ANADIGICS' driver amplifier IC which was designed in earlier. Mr. Rosenzweig commented, "Our success to date in having our new products for digital standards find acceptance by major cellular telephone manufacturers has led to expanding demand and order flow for ANADIGICS' cellular and PCS power amplifier ICs."

The gross profit margin for the 1996 second quarter was 48.0% compared to 49.6% in the first quarter of 1996. The gross margin decreased in the second quarter of 1996 compared to the first quarter due to higher costs of new products, and somewhat lower selling prices partially offset by manufacturing efficiencies associated with higher volumes. The Company expects that product gross margins will be further impacted in the next quarter, as production volumes increase for new products which are not yet up to desired yields. Mr. Rosenzweig added, "As production yields improve and we complete the conversion of our current fab from 3" to 4" wafers, we would expect to see margin improvement by the end of 1996."

Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including timely product and process development, order rescheduling or cancellation, 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 serves, as well as the other risks detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended December 31, 1995.

ANADIGICS, Inc. is a leading supplier of gallium arsenide integrated circuits used to receive and transmit radio and microwave frequency signals in a variety of high-volume consumer communications applications. The Company primarily focuses on supplying to the cable television, direct broadcast satellite television, fiber optic telecommunications, and wireless communication markets. ANADIGICS's objective is to be the leading supplier of RF/microwave solutions using GaAs integrated circuits. http://www.anadigics.com/anadigics

                             ANADIGICS, Inc.
                     CONDENSED STATEMENTS OF INCOME
             (Amounts in thousands, except per share amounts)

                     Three Months Ended      Six Months Ended
                     June 30,  June 30,     June 30,   June 30,
                     1996        1995       1996         1995
                       (Unaudited)              (Unaudited)

Net sales           $15,862   $12,465      $29,437   $23,435
Cost of sales         8,254     5,767       15,090    11,207

Gross profit          7,608     6,698       14,347    12,228
Research and
 development expenses 3,284     3,182        6,162     5,911
Selling and
 administrative
 expenses             2,063     1,658        4,031     3,057
Operating income      2,261      1858        4,154     3,260
Interest income, net    321       146          635         9
Income before
 income taxes         2,582     2,004        4,789     3,269
Provision for
 income taxes           516       581          958       948
Net income          $ 2,066    $1,423      $ 3,831   $ 2,321
Net income
 per share          $  0.24    $ 0.18      $  0.45   $  0.34
Weighted average common
 shares
 outstanding(1)       8,597     7,731        8,486     6,771

    (1) During the second quarter of 1996 warrants to purchase
209,270 shares of common stock were exercised, resulting in an
addition to stockholders' equity of approximately $3.6 million.  The
Company completed its initial public offering of 2,319,344 common
shares during the second quarter of 1995.

                              ANADIGICS, INC.
                        CONDENSED BALANCE SHEETS
                         (Dollars in thousands)

                                      June 30, 1996      December 31, 1995
Assets                                  (unaudited)           (note 1)

Current assets
 Cash and cash equivalents                 $ 15,646           $   6,394
 Marketable securities                       14,566              22,788
 Accounts receivable, net                     9,012               7,379
      Inventory                              10,425               8,735
Prepaid expenses and other current assets     1,850                 981
Deferred taxes                                  291                 184
    Total current assets                     51,790              46,461
Plant and equipment at cost                  40,562              34,537
Less accumulated depreciation and
 amortization                                18,806              16,060
Total net plant and equipment                21,756              18,477
Deferred taxes                                1,032               1,032
Deposits and other assets                       502                 280
Total assets                               $ 75,080           $  66,250
Liabilities and stockholders' equity

Current liabilities
 Accounts payable                         $   3,818          $    2,671
   Accrued liabilities                        4,205               4,027
Income taxes payable                          2,837               2,092
Current maturities of capital lease
 obligations                                  1,679               1,718
Total current liabilities                    12,539              10,508

Capital lease obligation,
 less current portion                         1,086               1,919
Total stockholders' equity                   61,455              53,823
Total liabilities and
 stockholders' equity                    $   75,080          $   66,250

Note 1: The condensed balance sheet at December 31, 1995 has been derived from the audited financial statements at that date but do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements.

CONTACT: ANADIGICS, INC.

Ronald Rosenzweig, 908-668-5000

John Lyons, 908-412-5972

or

Morgen-Walke Associates, Inc.

Michele Katz/Jason Langer

Press: Lee Foley, 212-850-5600