ANADIGICS Updates Financial Guidance; The Company Anticipates Fourth Quarter Revenues of $20.5 Million.

Business Editors

WARREN, N.J.--(BUSINESS WIRE)--Dec. 10, 2001

ANADIGICS, Inc. (Nasdaq: ANAD), a leading supplier of wireless and broadband communications solutions, today announced that it continues to see increased demand in the 2001 fourth quarter for its CDMA and TDMA wireless products.

The Company expects wireless revenues to reach approximately $13.5 million, at the high end of previous expectations. Broadband (Cable and Fiber) revenue remains on track at $7.0 million. The EPS loss for the fourth quarter, excluding special charges, is expected to be approximately ($0.44) per share. The Company anticipates that it will record special charges during the fourth quarter of approximately $0.03 to $0.05 relating to its cost reduction initiatives.

"In the fourth quarter, we expect to have record sequential growth in our wireless business," remarked Dr. Bami Bastani, President and Chief Executive Officer of ANADIGICS. "We continue to grow our share of the CDMA market, securing new design wins with our leading InGaP HBT power amplifiers. Our traditional TDMA business is strong and we have created a new beachhead in the GSM/GPRS/EDGE markets with our new PowerPlexer(TM) family of products."

The Company is on track with its initiatives to reduce manufacturing costs and to reduce operating expenses 30% by the 2002 first quarter. In addition to actions already implemented, the Company has begun to partially outsource its test operations, which over time is expected to improve gross margin by lowering test cost per unit. Moreover, the Company is evaluating strategic alternatives for its Fiber Optics product line, which could include a possible sale of its Fiber Optics product line.

Currently, revenue visibility into the 2002 first quarter remains limited as a result of shorter customer lead times, particularly in wireless. As a result, the Company is presently estimating first quarter revenues in the range of $16.0 million to $19.0 million, reflecting seasonally lower wireless revenues. Wireless revenues are expected in the range of $8.0 million to $10.0 million, a greater than 25% increase year-on-year, reflecting the Company's new CDMA customer base. The EPS loss for the first quarter, excluding any special charges, is anticipated to improve from the fourth quarter to a range of ($0.38) to ($0.42) per share.

As a result of the strength in wireless revenues, combined with cost reduction measures, the Company continues to target a return to profitability during the second half of 2002.

ANADIGICS' senior management will conduct a conference call today at 8:30 AM Eastern time to provide a fourth quarter update. A live audio Webcast will be available at www.anadigics.com. A recording of the call will be available approximately two hours after the end of the call on the ANADIGICS Web site or by dialing [phone].

ANADIGICS is scheduled to release its 2001 fourth quarter earnings on Wednesday, January 30, 2002.

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, and strategic alternatives, are forward-looking statements.