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To: 16yearcycle who wrote (80494)	9/16/2000 12:49:45 AM
From: Ruffian	Respond to of 152472

Alpha Indus Dn-2: Ericsson Issue Won't Hurt Business-CEO By KAJA WHITEHOUSE Of DOW JONES NEWSWIRES NEW YORK -- Investors who dropped shares of Alpha Industries Inc. (AHAA) because of Anadigics Inc.'s (ANAD) negative preannouncement are "painting with a broad brush," said David Aldrich, chief executive at Alpha Industries. Alpha shares fell as much as 12% Friday, and Aldrich blamed Anadigics' preannouncement, saying investors are clumping the competing companies together. And while Alpha also supplies wireless components to AB L.M. Ericsson Telephone Co. (ERICY), Aldrich said the integrated circuits company has "no plans to preannounce anything." As reported, shares of Anadigics fell more than 20% Friday after it warned fourth quarter earnings will fall short because of reduced orders from Ericsson, its largest customer. Ericsson's orders reduction will have "no material adverse effect on (Alpha's) business," said Aldrich. Orders from Ericsson make up about 16% of Alpha's wireless business, but 50% of that is in infrastructure, not handsets, he said. In addition, Aldrich thinks his company might have been saved due in part to industry trends. Some of the demand fallout in the wireless industry might be due to slowing sales of GSM, or global system for mobile communication, phones in Europe, said Aldrich. While Alpha supplies GSM components to companies like Ericsson, most of its handset business revenue comes from CDMA, or code division multiple access, he said. Revenue coming from GSM "is such a tiny fraction,.. that its not relevant to the health of the company," he said. None of the analysts who cover the stock were available for comment. Shares of Alpha Industries closed down $3.75, or 8.7%, to $39.50, on volume of 2.9 million shares, compared with average volume of 1.2 million. -Kaja Whitehouse; Dow Jones Newswires; 201-938-5393 kaja.whitehouse@dowjones.com Briefing Book for: AHAA \| ANAD \| ERICY \| S.ERC