ANADIGICS REPORTS RESULTS FOR THE QUARTER AND YEAR-ENDED DECEMBER 31, 2004

ANADIGICS, Inc. (Nasdaq: ANAD), a leading supplier of wireless and broadband communications solutions, reported fourth quarter revenue of $22.4 million compared to revenue of $23.3 million in the year-ago quarter. The net loss for the quarter was $10.3 million or $0.31 per share compared with a net loss of $12.1 million or $0.39 per share in the year-ago quarter.

Full-year 2004 revenues were $91.3 million versus 2003 revenue of $75.2 million, an increase of 21.5%. The net loss for the full-year of $43.1 million or $1.33 per share compares with a net loss of $50.8 million or $1.65 per share for the year-ago period.

At year-end December 31, 2004, cash and short and long-term marketable securities were $104.1 million and decreased by $3.8 million from that held at the end of the third-quarter 2004.

"We are pleased by the strong 21% year-over-year growth in revenues that we achieved in 2004. During the past year, ANADIGICS significantly increased sales growth of our GSM and WLAN solutions," stated Dr. Bami Bastani, President & CEO of ANADIGICS, Inc. "We are starting the new year off with our broadest portfolio of innovative new products to address some of the fastest growing markets in wireless and broadband communications."

"In 2004, we have delivered in excess of 60% of the incremental revenue to gross profit through manufacturing efficiency and lower products costs, and we continue to reduce operating expenses providing for greater leverage in our financial operating model," remarked Tom Shields, Senior Vice President and Chief Financial Officer of ANADIGICS, Inc.

Outlook for 2005

Revenue for the first quarter of 2005 is expected to be seasonally lower by 5% - 7% compared with the fourth quarter of 2004. The loss per share is estimated to equal the fourth quarter 2004 of $0.31. The seasonality reflects expected lower wireless revenues for handsets, partially offset by stronger demand for our broadband products.

Highlights of the Quarter

ANADIGICS Introduces Industry's Most Highly Integrated Dual-Band WLAN Power Amplifier

November 8, 2004 - ANADIGICS, Inc. announced the introduction of the AWL6950 dual-band 4 mm by 4 mm indium gallium phosphide heterojunction bipolar transistor (InGaP HBT) power amplifier (PA). This PA supports the 2.4 GHz and 5 GHz bands, which allows wireless local area network (WLAN) equipment manufacturers to use a single PA for 802.11b, 802.11a, 802.11g, 802.11a/b, and 802.11a/b/g applications. The small footprint AWL6950 is the industry's most highly integrated dual-band PA, requiring only two external capacitors, which significantly reduces printed circuit board (PCB) space requirements.

ANADIGICS Supplies SCDMA Power Amplifier Modules to Xinwei Telecom

October 27, 2004 - ANADIGICS, Inc. announced that the Company is shipping its AWT6109 and AWT6114 indium gallium phosphide heterojunction bipolar transistor (InGaP HBT) power amplifiers (PAs) to Xinwei Telecom Technology, Inc., Beijing, China. Xinwei, which has exclusive intellectual property rights for the SCDMA wireless local loop (WLL) system, is using the AWT6109 and AWT6114 in several new mobile handset models. Designed primarily for use in rural areas, SCDMA operates in the 1785 MHz to 1805 MHz band, offers 32 code channels for each carrier, and provides a 5 km to 15 km base-station-coverage radius.

ANADIGICS Introduces New Family of 6 mm by 6 mm GSM/GPRS Power Amplifier Modules

October 13, 2004 - ANADIGICS, Inc. announced today two new 6 mm by 6 mm GSM/GPRS InGaP HBT power amplifier (PA) modules with integrated power control. The AWT6166 quad band PA module and AWT6167 dual band PA module use a pin-out, RF engine, and power control scheme that are compatible with ANADIGICS' current generation of 7 mm by 7 mm GSM PAs, reducing the requirement for software changes and minimizing production calibration needs for GSM handset manufacturers. This generational compatibility enables handset manufacturers to reduce time-to-market when migrating to smaller PAs for new platforms.

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) 839-4197 (available until February 18).

ANADIGICS, Inc. Income Statement

Three Months Ended      Year Ended
   (in thousands, except per share    December  December  December  December
     amounts)                         31, 2004  31, 2003  31, 2004  31, 2003
                                   (Unaudited)(Unaudited)

      Net sales                        $22,415   $23,338   $91,350   $75,212
      Cost of sales                     19,162    21,060    77,355    71,927
      Gross profit                       3,253     2,278    13,995     3,285
      Research and development expenses  7,654     8,609    33,306    32,075
      Selling and administrative
       expenses                          5,140     5,586    22,511    19,420
      Restructuring and other charges        -       300         -       925
      Purchased in-process R&D               -       173         -     1,863
      Operating loss                    (9,541)  (12,390)  (41,822)  (50,998)
      Interest income                      524       715     2,203     3,344
      Interest expense                  (1,250)     (940)   (4,085)   (3,761)
      Gain on note repurchase                0         -       327         -
      Other (expense) income               (13)      116       295       276
      Loss before income taxes         (10,280)  (12,499)  (43,082)  (51,139)
      Benefit from income taxes              -      (382)        -      (382)
      Net loss                        $(10,280) $(12,117) $(43,082) $(50,757)

      Loss per share                    $(0.31)   $(0.39)   $(1.33)   $(1.65)

      Weighted average common
       shares outstanding               32,934    30,813    32,413    30,717

ANADIGICS, Inc. Balance Sheet

(in thousands)                    December 31, 2004 December 31, 2003
   Assets

   Current assets:
      Cash and cash equivalents                   $11,171           $18,525
      Marketable securities                        63,615            54,130
      Accounts receivable                          10,770            12,074
      Inventory                                    14,436            10,321
      Prepaid expenses and other current assets     3,073             3,243
   Total current assets                           103,065            98,293

   Marketable securities                           29,265            48,975

   Plant and equipment, net                        43,038            55,242

   Goodwill and other intangibles, net
    of amortization                                 6,297             1,788
   Other assets                                     4,230             3,600
                                                 $185,895          $207,898


   Liabilities and stockholders' equity

   Current liabilities:
      Accounts payable                             $8,021            $9,497
      Accrued liabilities                           4,783             5,618
      Accrued restructuring costs                     726             1,994
      Capital lease obligations                        18                84
   Total current liabilities                       13,548            17,193

   Other long-term liabilities                      3,032             2,959
   Long-term debt                                  84,700            66,700

   Stockholders' equity                            84,615           121,046
                                                 $185,895          $207,898