Anadigics Purchases Tavanza CDMA Handset Power Amplifier Business from Celeritek

WARREN, New Jersey

Acquired CDMA Power Amplifier Modules Designed into Key W-CDMA Reference Design and Future Handset Platforms at a Tier-One Asian Handset OEM

Anadigics, Inc., a leading supplier of wireless and broadband communications solutions, today announced that it has acquired the assets utilized in the wireless handset power amplifier business previously conducted by Tavanza, a subsidiary of Celeritek, to broaden its CDMA product line and to accelerate its penetration into strategic handset OEM customers. The agreement includes 3mm x 3mm x 1mm CDMA power amplifiers, technology, and intellectual property, as well as the recruitment of key RF engineering personnel related to the product line. Celeritek announced in September 2003 that Celeritek is exiting its handset power amplifier business to focus on GaAs-based subsystems and semiconductors for the defense markets.

Anadigics newly acquired products have been designed into CDMA and W-CDMA (3G UMTS) platforms at customers, including a tier-one handset OEM in Asia, as well as a key W-CDMA (UMTS) reference design. The deal expands Anadigics’ potential customer base and provides new CDMA revenue streams expected to ramp in 2004. The acquisition also provides Anadigics with increased PA design and development resources that will be focused on broadening the Company’s GSM handset power amplifier product line and supporting the qualification of PAs for new GSM handset platforms.

“Tavanza is a highly recognized brand for innovative CDMA power amplifier solutions,” said Dr. Bami Bastani, President & CEO of Anadigics, Inc. “This acquisition compliments our already strong CDMA PA module portfolio, which includes a robust new product pipeline of next generation 3mm x 3mm modules, and expands our portfolio beyond our competitors. The addition of these products and talented personnel from Tavanza serves Anadigics’ best of breed strategy by providing specific product advancements and capabilities, which we expect to accelerate our penetration into new tier-one wireless accounts.”

The addition of these products to Anadigics’ best-of-breed portfolio of power amplifiers for CDMA cellular, PCS, and KPCS handsets strengthens the Company’s competitive position in the marketplace. The newly acquired power amplifier modules utilize a patent-pending passive-free technology (PFT)(TM) to integrate the entire power amplifier function into a small 3mm x 3mm x 1mm module. The design of these PA modules eliminates the need for external passive components, thereby improving the cost structure by enabling the use of low-cost substrates. The new PA portfolio provides analog power control to optimize handset battery efficiency, improves thermal budgets, and delivers high levels of integration to shorten time to market for handset platforms.

Dr. Bastani continues, “Anadigics’ strong cash position enables us to benefit from industry consolidation through strategic acquisitions that quickly grow our top line. The technologies and products that this acquisition brings, in combination with Anadigics’ existing CDMA portfolio, technology, and manufacturing capabilities, strengthens our ability to increase our CDMA handset market share through customer base expansion.”

Anadigics is opening a new development center located in the Santa Clara, California area to house its new team of RF designers, formerly members of Celeritek’s Tavanza handset power amplifier development group.

Anadigics 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.



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