Conexant Announces Further Improvement in Fiscal First Quarter Revenue Outlook Driven by Wireless Communications.

Business Editors/High-Tech Writers

NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Dec. 17, 2001

Company Also Expects to Increase Cash Position

By $300 Million By Mid-Year 2002

Conexant Systems, Inc. (Nasdaq:CNXT) announced today that it now expects revenues for its first fiscal quarter, ending Dec. 28, 2001, to grow approximately 10 percent over the $201.0 million reported for its fourth fiscal quarter of 2001.

The company said its revenue outlook has improved largely as a result of stronger-than-expected performance in its Wireless Communications Division, which is now forecast to grow approximately 35 percent sequentially. Revenues from the company's broadband access business are also somewhat stronger than anticipated, with sequential growth now expected in the 3-5 percent range. A sequential decline for the company's Internet infrastructure business remains in line with original expectations. Last month, the company said it expected sequential wireless growth of 25 percent, and total first quarter revenues to increase 5-7 percent over fourth fiscal quarter revenues.

"This increase in revenue expectations primarily reflects the impact of sustained strong demand throughout the quarter for our wireless product portfolio, including power amplifiers, radio-frequency subsystems, and complete GSM system solutions," said Dwight W. Decker, Conexant chairman and chief executive officer. "In addition, total Conexant backlog visibility continues to improve steadily, increasing our confidence for sequential revenue growth in the March quarter."

The company also said that it now expects to significantly strengthen its balance sheet by the middle of next year. As part of a merger agreement between its wireless business and Alpha Industries, Inc. announced separately today, the company will receive $150 million in cash from the sale of its Mexicali, Mexico semiconductor assembly, module manufacturing and test facility to the new merged wireless semiconductor company. This transaction is expected to be completed in the second quarter of calendar 2002. Additionally, $150 million in cash on deposit with a key foundry partner will be refunded to Conexant in approximately six months.

"Building on the success we have demonstrated over the past two quarters in our cost-reduction and cash-management activities, these two steps will add a further $300 million in cash to our balance sheet by the middle of next year," Decker said.

Note to Editors, Analysts and Investors

Alpha and Conexant will be holding a conference call to discuss the merger agreement. The call will take place on Monday, Dec. 17, 2001 at 6:00 a.m. PST, 9 a.m. EST. To listen to the conference call via telephone, please call 800-680-9685 (domestic) or 334-323-7242 (international), security code: USA. To listen via the Internet, please visit www.alphaind.com, www.conexant.com, or www.ccbn.com. Playback of the conference call will begin at 9:00 a.m. PST on Monday, Dec. 17, and end at 5:00 p.m. PST on Friday, Dec. 21. The replay will be available on Alpha's web site at www.alphaind.com, or at Conexant's web site at www.conexant.com, or by calling 800-858-5309 (domestic) or 334-323-9869 (international), access code: 40313, pass code 16809.

About Conexant

Conexant Systems, Inc. is a worldwide leader in semiconductor system solutions for communications applications. Conexant leverages its expertise in mixed-signal processing to deliver integrated systems and semiconductor products through two separate businesses: Conexant and Mindspeed Technologies.

Conexant's personal networking business is focused on wireless communications, digital infotainment and personal computing products that are used in mobile communications and the broadband digital home. Mindspeed Technologies designs, develops and sells a complete portfolio of semiconductor networking solutions that facilitate the aggregation, transmission and switching of data, video and voice from the edge of the Internet to linked metropolitan area networks and long-haul networks.

Conexant, headquartered in Newport Beach, Calif., delivered revenues of $1.1 billion for fiscal 2001, and has approximately 6,900 employees worldwide. The company is a member of the S&P 500 and Nasdaq-100 indices. To learn more, visit us at www.conexant.com or www.mindspeed.com.

Safe Harbor Statement

This press release contains statements relating to future results of Conexant (including certain projections and business trends) that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties. These risks and uncertainties include, but are not limited to: maintaining a consistent and reliable source of energy; global economic and market conditions, such as the cyclical nature of the semiconductor industry and the markets addressed by the company's and its customers' products; demand for and market acceptance of new and existing products; successful development of new products; the timing of new product introductions; the availability and extent of utilization of manufacturing capacity; pricing pressures and other competitive factors; changes in product mix; fluctuations in manufacturing yields; product obsolescence; the ability to develop and implement new technologies and to obtain protection for the related intellectual property; the successful planned disposition of certain assets; the successful separation of the Company's Internet infrastructure and personal networking businesses; the successful merger of the Company's wireless business with Alpha Industries, Inc.; the ability to attract and retain qualified personnel; labor relations of the company, its customers and suppliers; and the uncertainties of litigation, as well as other risks and uncertainties, including but not limited to the security and safety risks of our employees and of Company facilities and those risks and uncertainties detailed from time to time in the company's Securities and Exchange Commission filings. These forward-looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Note to Editors: Conexant and Mindspeed are trademarks of Conexant Systems, Inc. Other brands and names contained in this release are the property of their respective owners.