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ANADIGICS REPORTS RESULTS FOR SECOND QUARTER 2006


July 24, 2006

ANADIGICS, Inc. (Nasdaq: ANAD), a leading supplier of wireless and broadband communications solutions, reported second quarter 2006 net sales of $40.2 million, an increase of 12.6% compared with net sales of $35.7 million in the prior quarter, and an increase of approximately 68% compared to net sales of $23.9 million in the year ago quarter.

Net loss calculated in accordance with generally accepted accounting principles in the U.S. ("GAAP") for the quarter was $2.8 million, or $0.06 per share, compared with a GAAP net loss of $4.6 million, or $0.12 per share, in the prior quarter, and a GAAP net loss of $9.1 million, or $0.27 per share, in the year ago quarter. Pro forma net loss for the quarter, excluding non-cash stock compensation expense, was $1.0 million or $0.02 per share.

As of July 1, 2006, cash and short and long-term marketable securities totaled $128.9 million compared with $134.5 million as of April 1, 2006.

"I am extremely pleased with our outstanding second quarter performance, which included exceeding our prior revenue guidance and represents an achievement of delivering five consecutive quarters of revenue growth for the company" said Dr. Bami Bastani, President and Chief Executive Officer of ANADIGICS. "We expect our revenue momentum and operating leverage to continue as a result of our strong positioning in existing growth markets including third-generation (3G) cell phones, Wi-Fi, and Tuner ICs."

This press release includes financial measures that are not in accordance with GAAP, consisting of non-GAAP, or pro forma, net loss and non-GAAP, or pro forma, loss per share. Management uses non-GAAP net loss and non-GAAP loss per share to evaluate the company's operating and financial performance in light of business objectives and for planning purposes. ANADIGICS believes that these measures are useful to investors because they enhance investors' ability to review the company's business from the same perspective as the company's management and facilitate comparisons of this period's results with prior periods. These non-GAAP measures exclude charges related to equity-based compensation. These financial measures are not in accordance with GAAP and may differ from non-GAAP methods of accounting and reporting used by other companies. The presentation of this additional information should not be considered a substitute for net loss or loss per share prepared in accordance with GAAP. Reconciliations of reported net loss and reported loss per share to non-GAAP net loss and non-GAAP loss per share, respectively, are included at the end of this press release.

Outlook for the Third Quarter 2006

Net Sales for the third quarter of 2006 is estimated to increase sequentially by approximately 7% - 9% and approximately 50% over the year ago quarter. Net loss per share on a GAAP basis for the third quarter of 2006 is expected to approximate $0.04 per share. However, on a Pro forma basis, we expect to generate net earnings of approximately $0.01 per share.

The statements regarding outlook are forward looking and actual results may differ materially. Please see safe harbor statement at the end of the press release.

Recent Highlights

July 11, 2006 - ANADIGICS Supplies 3G Power Amplifiers to ZTE

June 26, 2006 - ANADIGICS' Dual-Band CDMA Power Amplifiers Enable LG Electronics' VX8300 EV-DO Handset

June 20, 2006 - ANADIGICS Joins Russell 3000 Index

ANADIGICS, INC.
Consolidated Statements of Operations
(Unaudited)
(Amounts in thousands, except per share amounts) 

Three months ended   Six months ended
                                       July 1,  July 2,  July 1,   July 2,
                                        2006     2005     2006      2005

    Net sales                         $40,215  $23,943  $75,936   $45,716
    Cost of sales                      28,940   19,511   55,224    38,763
    Gross profit                       11,275    4,432   20,712     6,953
    Research and development
     expenses                           8,498    7,374   16,657    15,236
    Selling and administrative
     expenses                           5,869    5,506   11,362    11,058
    Restructuring and other charges         -        -        -      (120)
    Operating loss                     (3,092)  (8,448)  (7,307)  (19,221)
    Interest income                     1,571      599    2,437     1,176
    Interest expense                   (1,287)  (1,249)  (2,575)   (2,498)
    Other income                           21        9       21         3
    Net loss                          $(2,787) $(9,089) $(7,424) $(20,540)

    Basic and diluted net loss per
     share                             $(0.06)  $(0.27)  $(0.18)   $(0.61)

    Weighted average common and
     dilutive securities outstanding   47,198   34,057   42,184    33,780

Unaudited Reconciliation of GAAP to Pro Forma Non-GAAP Financial
Measures 

GAAP net loss                     $(2,787) $(9,089) $(7,424) $(20,540)
    Less Stock compensation expense
      Cost of sales                       387      174      696       309
      Research and development            701      359    1,272       642
      Selling, general and
       administrative                     691      251    1,260       480
    Pro forma net loss                $(1,008) $(8,305) $(4,196) $(19,109)

    Pro forma basic and diluted net
     loss per share                    $(0.02)  $(0.24)  $(0.10)   $(0.57)

ANADIGICS, INC.
Condensed Consolidated Balance Sheets
(Amounts in thousands) 

                                           July 1,       December 31,
                                                   2006              2005
        Assets                                  (Unaudited)

        Current assets:
           Cash and cash equivalents               $15,183           $11,891
           Marketable securities                   111,685            70,364
           Accounts receivable                      22,775            18,755
           Inventory                                20,272            16,009
           Prepaid expenses and other
            current assets                           3,791             2,188
        Total current assets                       173,706           119,207

        Marketable securities                        1,983             4,102

        Plant and equipment, net                    37,456            36,307

        Goodwill and other intangibles,
         net of amortization                         5,977             6,044
        Other assets                                 1,721             2,613
                                                  $220,843          $168,273

        Liabilities and stockholders'
         equity

        Current liabilities:
           Accounts payable                        $17,049           $15,519
           Accrued liabilities                       4,918             4,672
           Accrued restructuring costs                   9                40
           Current portion of long-term
            debt                                    46,700            46,700
           Capital lease obligations                   301               269
        Total current liabilities                   68,977            67,200

        Other long-term liabilities                  3,261             3,175
        Long-term debt                              38,000            38,000
        Long-term capital lease
         obligations                                 1,616             1,763


        Stockholders' equity                       108,989            58,135
                                                  $220,843          $168,273

Conference Call

ANADIGICS' senior management will conduct a conference call today at 8:30 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 (800) 839-1247 (available until July 31).

ANADIGICS, Inc. (Nasdaq: ANAD) is a leading provider of radio frequency integrated circuits and radio frequency front end solutions in the rapidly growing wireless handset and broadband communications markets. The Company's products include power amplifiers, tuner integrated circuits, active splitters and other components, which can be sold individually or packaged as integrated RF modules.

Safe Harbor Statement
Except for historical information contained herein, this press release contains projections and other forward-looking statements (as that term is defined in the Securities Exchange Act of 1934, as amended). These projections and forward-looking statements reflect the Company's current views with respect to future events and financial performance and can generally be identified as such because the context of the statement will include words such as "believe", "anticipate", "expect", or words of similar import. Similarly, statements that describe our future plans, objectives, estimates or goals are forward-looking statements. No assurances can be given, however, that these events will occur or that these projections will be achieved and actual results and developments could differ materially from those projected as a result of certain factors. Important factors that could cause actual results and developments to be materially different from those expressed or implied by such projections and forward-looking statements include those factors detailed from time to time in our reports filed with the Securities and Exchange Commission, including the Company's annual report on Form 10-K for the year ended December 31, 2005, and those discussed elsewhere herein.