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Press Release

Alpha Finalizes Global Agreement with the Worldwide Leader of Broadband Networking Solutions

Alpha Finalizes Global Agreement with the Worldwide Leader of Broadband Networking SolutionsWOBURN, Mass.--(BUSINESS WIRE)--Dec. 21, 2000-- Alpha to Provide RF Broadband Solutions for High-Speed Internet Access

for Customer's Fixed Wireless and Local Area Networking Systems

Alpha (Nasdaq:AHAA) announced today that it has begun shipping production volumes of its gallium arsenide (GaAs) MMICs and RF semiconductors for broadband Internet access under a new global sourcing alliance with the world's leading end-to-end networking solutions provider.

Under the agreement, Alpha is supplying a family of RF and broadband products, including GaAs MMIC switches, attenuators, passive products and millimeterwave devices for the customer's broadband fixed wireless access and Local Area Networking systems.

"Alpha is strategically focused on the broadband access platforms that this dominant industry leader is using to expand and accelerate broadband access to the Internet," said President and CEO David Aldrich. "This agreement leverages our strength in high-speed broadband semiconductor technology and extends our customer base to include a company that is the recognized leader in networking solutions for the Internet. It also represents an important milestone for Alpha as we increase our market-leading wireless and broadband products into the customer's 2.4GHz, Local Multipoint Distribution Service (LMDS), Multi-channel, Multipoint Distribution Service (MMDS) and Unlicensed National Information Infrastructure (UNII) access technologies."

The available market opportunity for broadband fixed wireless solutions is expected to grow from $1.7 billion in 1999 to $16 billion in 2005, according to Burlington, Massachusetts-based research firm Ovum, Inc.

"We are pleased that Alpha's technology has evolved to support all of the customer's fixed wireless access methods and WLAN systems," said Vice President of Technology Lj Ristic. "With the development of new OC-192 and OC-768 components based on our high-speed GaAs HBT and PHEMT processes, Alpha is poised to support next-generation fiber-optic systems, high-speed enterprise networks and last-mile access technologies."

About Alpha

Alpha is a leading provider of RF integrated circuit-based solutions, including semiconductors and ceramic components, for the broadband and wireless communications markets. Alpha's GaAs and silicon switches, power amplifiers and discrete semiconductors are used by the world's leading broadband, infrastructure and wireless communications companies to enhance the speed, quality and performance of voice, data and video. The company's recently announced Alpha Integration Platform™ (aiIP™) is a breakthrough manufacturing, packaging and design technique that reduces design complexity and improves the OEM's overall time to market for new products. For more information, please visit Alpha's Web site, www.alphaind.com.

Safe Harbor Statement - Except for the historical information contained herein, this news release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements, including those relating to its global sourcing agreement with the world's leading networking and access company, constitute Alpha's current intentions, hopes, beliefs, expectation or predictions of the future, which are, therefore, inherently subject to risks and uncertainties. The Company's actual results could differ materially from those anticipated in the Company's forward-looking statements based on various factors, including without limitation: cancellation or deferral of customer orders, growth of the wireless Internet access market, dependence on a small number of large customers, difficulties in the timely development and market acceptance of new products including the Company's HBT amplifiers, market developments that vary from the current public expectations concerning the growth of wireless communications, difficulties in manufacturing new or existing products in sufficient quantity or quality, increased competitive pressures, decreasing selling prices for the Company's products, or changes in economic conditions. Further information on factors that could affect the Company's performance is included in the Company's periodic reports filed with the SEC, including but not limited to the Company's Form 10-K for the year ended April 2, 2000, and subsequent Forms 10-Q. The Company cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any such statements to reflect any change in the Company's expectations or any change in events, conditions or circumstance on which any such statement is based.

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CONTACT: Alpha
Paul Vincent, Chief Financial Officer
(781) 935-5150 Ext. 4438