ANADIGICS' First Quarter 2002 Results Better Than Anticipated

ANADIGICS, Inc. (Nasdaq: ANAD), a leading supplier of wireless and broadband communications solutions, today reported net sales of $19.5 million and an adjusted loss of $0.37 per share (excluding special charges and amortization of intangibles) for the first quarter ended March 30, 2002. These results were better than anticipated due to increased demand in the quarter for shipments of both wireless and broadband products. Net sales and adjusted EPS loss in the 2001 fourth quarter were $21.0 million and $0.43, respectively.

In the 2002 first quarter, wireless product line revenues were $9.0 million, on track with mid-March expectations and up $1.0 million from January guidance, reflecting stronger demand for the Company's CDMA products. Broadband revenues were $10.5 million, up 48% sequentially, reflecting higher shipments of RFIC products for infrastructure and subscriber applications.

"CDMA 1xRTT service is beginning to capture more of the wireless network, as evidenced by recent announcements from major carriers, and ANADIGICS is supplying the RF transmit engine to the leading supplier of 1xRTT capable handsets," remarked Dr. Bami Bastani, President and Chief Executive Officer of ANADIGICS. "Advanced 2.5G handsets favor our leading InGaP HBT technology. We are on track to add new customers and gain share in this exciting market as 2002 unfolds and 1xRTT rollouts continue."

The Company continues to improve profitability with initiatives to decrease manufacturing costs and operating expenses. In the first quarter, a positive gross profit was recorded one quarter ahead of expectations. Adjusted gross profit was $0.6 million, an improvement of $1.4 million over the fourth quarter of 2001. Adjusted operating expenses were reduced to $12.1 million, $4.3 million or 26% lower than the second quarter of 2001 when the company initiated efforts to streamline its cost base.

The Company recorded special charges totaling $6.5 million in the quarter relating to the consolidation of certain facilities and the restructuring of its fiber product line. Including these special charges and amortization of intangibles, the net loss for the quarter was $0.59 per share.

"We continue to demonstrate our focus and commitment toward reducing manufacturing and operating costs, improving gross profit, and managing cash flow," remarked Tom Shields, Chief Financial Officer of ANADIGICS. "We continue to align operating expenses to meet expectations of a return to profitability while building market share with leading edge products."

The Company's balance sheet remains strong. Cash and marketable securities totaled $193 million at March 30, 2002.

OUTLOOK
The Company is 90% booked to meet an improved second quarter revenue forecast of approximately $21.0 million. Wireless revenues are anticipated to increase greater than 20% sequentially and 85% percent over the prior year to $11.0 million, reflecting increased demand for our CDMA products. Broadband revenues are estimated at $10.0 million, primarily reflecting lower infrastructure sales. Earnings are expected to continue to improve, with an expected loss per share of $0.31.

HIGHLIGHTS OF THE QUARTER

PRODUCTION ORDER - Wireless Handset RF Switches
On April 15, 2002, the Company announced that it has received a high volume production order for radio frequency (RF) switches from a major manufacturer of wireless handsets, continuing ANADIGICS' leadership position as one of the few companies shipping production volumes of both power amplifiers and RF switches.

NEW PATENT AWARD - DC-DC Converter
On March 25, 2002, the Company announced it has been awarded a patent for a low spurious signal DC-DC converter; US Patent No. 6314008. The patented DC-DC converter provides very low distortion, i.e., a very low incidence of spurious signals, and a single power supply for front-end amplifiers used in equipment such as cable television systems and other broadband RF receivers. Since its first award in 1989, ANADIGICS has assembled a strong patent portfolio of 21 RF-related patents issued and 17 patents pending, a validation of our successful technical processes and an indication of marketplace leadership in RF design and technology standards.

NEW PRODUCT - InGaP HBT TIA for OC-192 Applications
On March 19, 2002, the Company introduced a high-performance transimpedance amplifier (TIA) designed specifically for OC-192 metro area network (MAN) applications. The device offers users added flexibility in their link budgets, and the potential to eliminate optical amplifiers in numerous applications, therefore vastly reducing MAN build-out costs while maintaining high performance levels. Metro is experiencing moderate growth, fueled primarily by Gigabit Ethernet local area network (LAN) and storage area network (SAN) expansion. As the 10 Gb/s market begins to mature, customers are demanding more targeted, cost-effective new products that solve specific problems and enable continued growth.

NEW PRODUCT - InGaP HBT Limiting Amp for OC-192 Applications
On March 19, 2002, the Company announced the first in a series of low cost, high performance limiting amplifiers for 10 Gb/s OC-192 MAN and WAN applications. The device offers a unique combination of input sensitivity, high gain and very low jitter. The growth in demand for remote data storage transfer and the continued growth of high-speed internet access has stimulated demand for high-capacity optical communication solutions that can cost effectively meet the needs to transfer large volumes of data.

CONFERENCE CALL
ANADIGICS' senior management will conduct a conference call today at 8:45 AM Eastern time. 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 (402) 220-2092 (available until April 29).

ANADIGICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share and per share amounts)

Three Months Ended March 30, 2002
                               ---------------------------------------
                              As Reported   Adjustments     Adjusted
                               ---------------------------------------
                               (unaudited) (unaudited)   (unaudited)

Net sales                        $ 19,521       $ -        $ 19,521
Cost of sales                      19,005       (58)(1)      18,947
                               ----------- ---------     -----------
Gross profit                          516       (58)            574
Research and development
  expenses                          7,578      (335)(2)       7,243
Selling and administrative
  expenses                          5,279      (455)(1,2)     4,824
Restructuring charges               5,959    (5,959)(3)           -
                               ----------- ---------     -----------
Operating loss                    (18,300)   (6,807)        (11,493)
Interest income                     1,681         -           1,681
Interest expense                   (1,442)        -          (1,442)
Other income (expense)                  2         -               2
                               ----------- ---------     -----------
Loss before income taxes          (18,059)   (6,807)        (11,252)
Provision (benefit) for income
  taxes                                 -         -               -
                               ----------- ---------     -----------
                               ----------- ---------     -----------
Net loss                        $ (18,059) $ (6,807)      $ (11,252)
                               =========== =========     ===========


Basic and diluted loss per
  share                           $ (0.59)                  $ (0.37)
                               ===========               ===========

Weighted average common and
  dilutive shares outstanding  30,570,828                30,570,828
                               ===========               ===========

(1)Includes amortization of acquisition-related intangible assets
($58 in COGS, $270 in S&A).
(2)Comprised of certain professional fees and employee
compensation relating to cost reduction initiatives ($335 in
R&D and $185 in S&A).
(3)Comprised of facilities consolidation costs, workforce
reductions and asset impairments on certain leasehold
improvements and Fiber equipment.
ANADIGICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share and per share amounts)

Three Months Ended
                                    ----------------------------------
                                    ----------------------------------
                                    Mar. 30, 2002      Mar. 31, 2001
                                    ---------------------------------
                                         (unaudited)     (unaudited)

Net sales                                   $ 19,521        $ 28,520
Cost of sales                                 19,005          21,205
                                    ---------------------------------
Gross profit                                     516           7,315
Research and development expenses              7,578          10,051
Selling and administrative expenses            5,279           6,640
Restructuring charges                          5,959               -
                                    ---------------------------------
Operating loss                               (18,300)         (9,376)
Interest income                                1,681           2,423
Interest expense                              (1,442)            (61)
Other income (expense)                             2             (60)
                                    ---------------------------------
Loss before income taxes                     (18,059)         (7,074)
Provision (benefit) for income taxes               -          (2,476)
                                    ---------------------------------
                                    ---------------------------------
Net loss                                   $ (18,059)       $ (4,598)
                                    =================================


Basic and diluted loss per share             $ (0.59)        $ (0.15)
                                    =================================

Weighted average common and dilutive
    shares outstanding                    30,570,828      30,063,509
                                    =================================

ANADIGICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share amounts)

March 30, 2002     December 31, 2001
                                    ----------------------------------
Assets                               (unaudited)

Current assets:
Cash and cash equivalents             $43,195             $63,102
Marketable securities                  79,029              55,364
Accounts receivable                    11,630              10,200
Inventory                              12,643              14,661
Prepaid expenses and other current
  assets                                6,865               6,635
                                    ----------  ------------------
Total current assets                  153,362             149,962

Marketable securities                  70,738              81,629

Property and equipment:
  Equipment and furniture             125,709             127,903
  Leasehold improvements               27,278              34,207
  Projects in process                  18,777              17,702
Less accumulated depreciation and
  amortization                         90,151              89,329
                                    ----------------------------------
                                       81,613              90,483

Goodwill and other intangibles, net
  of amortization                      19,173              19,443
Other assets                            6,008               5,397
                                    ----------------------------------
                                    ----------------------------------
                                     $330,894            $346,914
                                    ==================================

Liabilities and stockholders' equity

Current liabilities:
Accounts payable                      $11,504              $9,115
Accrued liabilities                     5,709               6,549
Accrued restructuring costs             3,413               1,898
Current maturities of long-term debt      179                 244
Current maturities of capital lease
  obligations                              38                  94
                                    ----------------------------------
Total current liabilities              20,843              17,900

Other long-term liabilities             2,443               2,378
Long-term debt, less current portion  100,000             100,000

Stockholders' equity                  207,608             226,636
                                    ----------------------------------
                                     $330,894            $346,914
                                    ==================================