ANADIGICS Acquires WLAN Power Amplifier Product Line
from RF Solutions, Inc.
802.11a/b/g Amplifiers Accelerate ANADIGICS' WLAN Market Penetration
Warren, NJ, April 2, 2003 -- ANADIGICS, Inc. (Nasdaq: ANAD), a leading supplier
of wireless and broadband communications solutions, today announced that it has
acquired the complete Wireless Local Area Network (WLAN) power amplifier (PA)
and module product lines from RF Solutions Inc., a privately held fabless
supplier of WLAN semiconductor products based in Atlanta, Georgia. The
transaction is expected to broaden ANADIGICS' customer base and accelerate the
Company's penetration into the emerging WLAN market, while increasing its served
available market. The transaction strategically addresses IEEE 802.11b, IEEE
802.11a, and IEEE 802.11g (draft) standards.
"Our new WLAN PA team brings to ANADIGICS enormous value in terms of products,
applications support, design talent, customer relationships and entrepreneurial
spirit to help drive our growth in the exciting WLAN market," remarked Dr. Bami
Bastani, President and CEO of ANADIGICS, Inc. "Industry analysts expect the WLAN
market to grow at more than a thirty-five percent compound annual growth rate
over the next several years. This acquisition compliments our existing product
lines, design capabilities, and best-of-breed InGaP HBT technology while
strategically positioning ANADIGICS to capture significant share of the WLAN
market."
The transaction will be accounted for as a purchase and includes an up front
cash consideration of $2.8 million and a contingent payment of up to 3.0 million
common shares, based upon achievement of certain revenue targets over the next
twelve months.
The acquisition included RF Solutions' WLAN PA development operation, sixteen
employees comprised of engineering, sales and marketing and operations
personnel, intellectual property comprised of PA and module product design,
certain assets and the assumption of certain liabilities. ANADIGICS currently
estimates that the transaction will be accretive to earnings on a GAAP basis in
2004.
Marcus Wise, Senior Director of WLAN Products at ANADIGICS Inc., formerly
responsible for sales and marketing at RF Solutions said, "I am extremely
pleased to become a part of the ANADIGICS team. RF Solutions has strong
relationships with industry leading WLAN system manufacturers and has made
inroads into the WLAN market by introducing breakthrough products, such as the
industry's first dual-band 802.11 power amplifier. As WLAN and cellular
applications converge, we are uniquely positioned to introduce multi-band PA
module solutions that integrate 802.11 and cellular handset functionality. I
look forward to continuing our leadership position in WLAN power amplifier
solutions at ANADIGICS, by leveraging our combined technology, design, and
marketing capabilities."
Providing industry-leading efficiency and performance, ANADIGICS' newly acquired
product line provides WLAN designers with a complete family of single and
dual-band power amplifiers and IP, which offers flexibility and cross-standard
operability to address the needs of emerging WLAN systems. Several of these
products have already been selected for design-ins on significant WLAN reference
designs.
For additional information, contact ANADIGICS by phone (908) 668-5000 or FAX
(908) 668-5132 or visit the Company's Web site at www.anadigics.com. RF
Solutions, Inc. was represented by RBC Capital Markets in this transaction.
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ANADIGICS (NASDAQ: ANAD) designs and manufactures radio frequency integrated
circuit (RFIC) solutions for growing broadband and wireless communications
markets. The Company's innovative high frequency RFICs enable manufacturers of
communications equipment to enhance overall system performance while reducing
manufacturing cost and time to market. By utilizing state-of-the-art
manufacturing processes for its RFICs, ANADIGICS achieves the high-volume and
cost-effective products required by leading companies in its targeted
high-growth communications markets. ANADIGICS was the first GaAs IC manufacturer
to receive ISO 9001 certification.
Except for historical information contained herein, this press release contains
forward-looking statements that involve risks and uncertainties, including, but
not limited to, order rescheduling or cancellation, changes in customers'
forecasts of product demand, timely product and process development and
protection of the associated intellectual property rights, individual product
pricing pressure, variation in production yield, changes in estimated product
lives, difficulties in obtaining components and assembly and test services
needed for production of integrated circuits, change in economic conditions of
the various markets the Company serves, as well as the other risks detailed from
time to time in the Company's reports filed with the Securities and Exchange
Commission, including the report on Form 10-K for the year ended December 31,
2002. Actual results could differ materially from the Company's forward-looking
statements. These forward-looking statements 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 the Company's future plans, objectives, estimates, or goals are
forward-looking statements. Important factors that could cause actual results
and developments to be materially different from those expressed or implied by
such statements include those factors discussed herein.
Press Contacts Corporate Contact Investor Relations
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Allan Fliss/Glen Turvey Tim Blanke Thomas Shields
Richartz Fliss Clark & Pope ANADIGICS, Inc. ANADIGICS, Inc.
400 Morris Ave., Ste. 222 141 Mt. Bethel Road 141 Mt. Bethel Road
Denville, NJ 07834 Warren, NJ 07059 Warren, NJ 07059
Tel: +1 973 627-8180 Tel: +1 908 668-5000 Tel: +1 908 412-5995
Fax: +1 973 627-8410 Fax: +1 908 668-5132
E-mail: turvey@rfcp.com E-mail: tblanke@anadigics.com E-mail: tshields@anadigics.com