Alpha Industries Completes Major GaAs IC Fab Expansion.

WOBURN, Mass.--(BUSINESS WIRE)--Sept. 9, 1999--

--First Phase Quadruples Facility Capability

--Second Phase Accelerated to Meet Demand

Alpha Industries, Inc. (NASDAQ:AHAA), a major supplier of radio frequency integrated circuits for wireless voice and data applications, announced today that it has completed the first phase of a major expansion program that has upgraded and expanded the available clean room space at its gallium arsenide IC fabrication facility in Woburn, Massachusetts. This will allow Alpha to increase the fab's production capacity to four times what it was a year ago. The new equipment is now in use and producing high-volume GaAs RF ICs for major wireless handset manufacturers. The multi-phase expansion plan was initiated last year to match Alpha`s production capacity with strong forecasted demand growth from the Company's wireless OEM customers.

Alpha also announced that it has accelerated the second phase of the expansion program, because the company continues to see strong demand growth above its original projections. This second phase will involve installation of additional production equipment in a portion of the existing clean room space. The second phase is expected to cost approximately $12 million and to be complete by the summer of 2000.

Bruce Nonnemaker, Alpha's Director of Operations, stated, "This first phase of increased capacity is being brought into production on time, under a very aggressive schedule. The new equipment and facilities have been operating extremely well, and I am very pleased at the outstanding performance of everyone in the production area during this demanding period.

"We have planned the first two phases of this expansion process carefully to provide for even greater capacity in the future. All of the new equipment, and much of the existing equipment, is 6 inch wafer compatible; we have moved to a substantially higher level of automation; and new equipment will allow us to reduce our line width to 0.4 microns or lower. We will be able to convert the fab to high-volume six inch wafer operation when we choose, with limited capital expenditures."

David Aldrich, Executive Vice President of Alpha, stated, "This expansion project has been superbly executed, while we were ramping other production in the same footprint. As a result, I am very comfortable that Alpha will be able to continue growing its production capacity to meet market demand, as Alpha strengthens its position in the dynamic and fast-growing wireless markets."

Alpha Industries designs and manufactures a broad range of products for microwave and radio frequency wireless communications applications. The Wireless Semiconductor segment provides gallium arsenide (GaAs) integrated circuits and other semiconductors to the dynamic global market for wireless telephone handsets. The Application Specific Products (ASP) segment provides a broad range of GaAs and silicon devices to satellite, instrumentation, defense and other communications markets. The Ceramic Products segment provides technical ceramic products for wireless telephony infrastructure and other wireless markets. Additional information is available at Alpha's website - www.alphaind.com.

Safe Harbor Statement - Except for the historical information contained herein, this news release contains forward-looking statements that constitute the Company's current intentions, hopes, beliefs, expectation or predictions of the future which are, therefore, inherently subject to risks and uncertainties. The Company's actual results could differ materially from those anticipated in the Company's forward-looking statements based on various factors, including without limitation: cancellation or deferral of customer orders, dependence on a small number of large customers, difficulties in the timely development and market acceptance of new products, market developments that vary from the current public expectations concerning the growth of wireless communications, difficulties in manufacturing new or existing products in sufficient quantity or quality, increased competitive pressures, decreasing selling prices for the Company's products, or changes in economic conditions. Further information on factors that could affect the Company's performance is included in the Company's periodic reports filed with the SEC, including but not limited to the Company's Form 10-K for the year ended March 28, 1999, and subsequent Forms 10-Q. The Company cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any such statements to reflect any change in the Company's expectations or any change in events, conditions or circumstance on which any such statement is based.