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ANADIGICS REPORTS RESULTS FOR THIRD QUARTER 2006


October 24, 2006

ANADIGICS, Inc. (Nasdaq: ANAD), a leading supplier of wireless and broadband communications solutions, reported third quarter 2006 net sales of $44.8 million, an increase of 11.5% compared with net sales of $40.2 million in the prior quarter, and an increase of 53.2% compared to net sales of $29.3 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 $1.3 million, or $0.03 per share, compared with a GAAP net loss of $2.8 million, or $0.06 per share, in the prior quarter, and a GAAP net loss of $6.8 million, or $0.20 per share, in the year ago quarter. Pro forma net income for the quarter, which excludes non-cash stock compensation expense, was $0.9 million or $0.02 per share.

"ANADIGICS achieved an important milestone as the Company delivered on pro forma profitability in its sixth consecutive quarter of net sales growth" said Dr. Bami Bastani, President and Chief Executive Officer of ANADIGICS. "Our strong product portfolio in both the wireless and broadband growth markets, including third-generation (3G) mobile phones, Wi-Fi, and Tuner ICs and our tier I relationships continue to drive revenue growth and momentum in operating leverage."

As of September 30, 2006, cash and short and long-term marketable securities totaled $130.5 million compared with $128.9 million as of July 1, 2006.

"The execution of our strategy has resulted in significant financial leverage in recent quarters," said Tom Shields, Executive Vice President and Chief Financial Officer. "Our success in delivering both pro forma income and positive cash flow are important events that exemplify our commitment to increasing shareholder value."

This press release includes financial measures that are not in accordance with GAAP, consisting of non-GAAP, or pro forma, net income or loss and non-GAAP, or pro forma, income or loss per share. Management uses non-GAAP net income or loss and non-GAAP income or 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 income or loss and non-GAAP income or loss per share, respectively, are included at the end of this press release.

Outlook for the Fourth Quarter 2006

Net sales for the fourth quarter of 2006 are estimated to increase sequentially for the seventh consecutive quarter by approximately 4% to 7% and approximately 40% to 44% over the year-ago quarter. Net income per share on a GAAP basis for the fourth quarter of 2006 is expected to approximate break-even. However, on a pro forma basis, we expect to generate net income of approximately $0.05 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.

Conference Call

ANADIGICS' senior management will conduct a conference call today at 5:00 PM 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) 839-8705 (available until October 31).

Recent Highlights

September 28, 2006 - ANADIGICS Shipments Exceed 750 Million Units

September 13, 2006 - ANADIGICS Ships Production Volumes of Penta-Band 3G Power Amplifiers to Samsung Electronics for SGH-Z620

September 8, 2006 - ANADIGICS Ships Production Volumes of 3G EV-DO Power Amplifiers to Samsung Electronics for SCH-a870

September 7, 2006 - ANADIGICS Ships Power Amplifiers for New Mobile Phones From World's Leading Handset OEM

August 3, 2006 - ANADIGICS Announces Production Shipments of Dual-Band Power Amplifiers for LG Electronics EV-DO Chocolate Phone

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

Three months ended       Nine months ended
                            September 30, October 1, September 30, October 1,
                                 2006        2005         2006        2005

   Net sales                  $44,825     $29,264     $120,761     $74,980
   Cost of sales               31,035      22,691       86,259      61,454
   Gross profit                13,790       6,573       34,502      13,526
   Research and development
    expenses                    9,137       7,491       25,794      22,727
   Selling and administrative
    expenses                    6,328       5,234       17,690      16,292
   Restructuring and other
    charges                         -           -            -        (120)
   Operating loss              (1,675)     (6,152)      (8,982)    (25,373)
   Interest income              1,648         607        4,085       1,783
   Interest expense            (1,285)     (1,250)      (3,860)     (3,748)
   Other income                     -          15           21          18
   Net loss                   $(1,312)    $(6,780)     $(8,736)   $(27,320)

   Basic and diluted loss
    per share                  $(0.03)     $(0.20)      $(0.20)     $(0.81)

   Weighted average common
    and dilutive securities
    outstanding                45,237      34,067       43,202      33,872

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

   GAAP net loss              $(1,312)    $(6,780)     $(8,736)   $(27,320)
   Less Stock compensation
    expense
      Cost of sales               478         146        1,174         455
      Research and development    881         281        2,153         923
      Selling, general and
       administrative             869         195        2,129         675
   Pro forma net income (loss)   $916     $(6,158)     $(3,280)   $(25,267)

   Pro forma basic net income
    (loss) per share            $0.02      $(0.18)      $(0.08)     $(0.75)

ANADIGICS, INC.

Condensed Consolidated Balance Sheets
(Amounts in thousands) 

September 30, 2006   December 31, 2005
   Assets                                (Unaudited)

   Current assets:
      Cash and cash equivalents            $16,052           $11,891
      Marketable securities                108,264            70,364
      Accounts receivable                   25,162            18,755
      Inventory                             19,858            16,009
      Prepaid expenses and other
       current assets                        3,667             2,188
   Total current assets                    173,003           119,207

   Marketable securities                     6,171             4,102
   Plant and equipment, net                 37,361            36,307

   Goodwill and other intangibles,
    net of amortization                      5,943             6,044
   Other assets                              1,612             2,613
                                          $224,090          $168,273

   Liabilities and stockholders' equity

   Current liabilities:
      Accounts payable                     $19,321           $15,519
      Accrued liabilities                    4,556             4,672
      Accrued restructuring costs               -                 40
      Current portion of long-term debt     46,700            46,700
      Capital lease obligations                307               269
   Total current liabilities                70,884            67,200

   Other long-term liabilities               3,305             3,175
   Long-term debt                           38,000            38,000
   Long-term capital lease obligations       1,540             1,763

   Stockholders' equity                    110,361            58,135
                                          $224,090          $168,273

* The condensed balance sheets at December 31, 2005 has been derived from
the audited financial statements at such date but does not include all
the information and footnotes required by generally accepted accounting
principles for complete financial statements.

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.