EL SEGUNDO, CA. December 2000 - International Rectifier Corporation (NYSE: IRF - news) today announced that it is expanding its fast-growing proprietary business with the acquisition of Unisem Inc., a leading supplier of analog ICs that manage power for information technology applications, including portable electronics, Internet infrastructure and graphics processors.

IR has entered into an agreement to purchase the company for approximately $50 million in cash. Company management expects the acquisition to be accretive within the first 12 months.

Based in Irvine, Calif., Unisem has annualized revenues of about $32 million. On a pro forma basis, the acquisition raises the portion of IR revenue derived from proprietary products to approximately 34 percent.

Unisem's product offerings complement International Rectifier's existing line of advanced-circuit devices for information technology. Unisem's close associations with Taiwan-based UMC and Episil also provide access to specialized foundry and subcontract capacity suited to the needs of power management technologies.

International Rectifier chief executive officer Alex Lidow commented, ``Our shared vision and complementary technologies make Unisem and IR a compelling combination in analog power technology. IR has already defined power architectures for Motor Control and automotive, and now the acquisition of Unisem rounds out our leadership in IR's third target market, information technology.''

Unisem president Amir Asvadi noted, ``The combination of Unisem and IR creates broader analog technology bandwidth with no real overlap in structure and costs. We're excited to be part of an organization that increases our stature and positions Unisem to reach its full potential.''

Chief executive of the Episil foundry, Archie Hwang added, ``International Rectifier and Unisem make a great combination in one of the most exciting areas in semiconductors today. We view them as a key customer as Episil expands its foundry support for analog ICs.''

The acquisition of Unisem is subject to regulatory review and other closing conditions.

International Rectifier is a world leader in power management devices and systems that enable information technology and other end products to improve functionality, speed, compactness and portability. IR's analog power ICs, advanced-circuit devices, power systems and components enable Internet hardware to gain speed and reliability, allow portable electronics to run longer off a single charge, improve automotive fuel efficiency, and cut energy consumption in home appliances and industrial motors.

International Rectifier is the pioneer and market leader in the $4 billion power MOSFET industry, and more than 20 companies are licensed under its power MOSFET patents. IR serves market leaders around the world, and more than half its revenue comes from outside the United States.

The foregoing material includes some forward-looking statements made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We caution that such statements are subject to a number of uncertainties, and actual results may differ materially. Factors that could affect the Company's actual results include the effectiveness of cost controls, cost reductions and the integration of the new businesses into our operations; the accuracy of customers' forecasts; push-out of delivery dates; product returns; introduction, acceptance, availability of new products; and timely completing customer qualifications; pricing pressures; product returns; failure of suppliers to meet delivery commitments; unfavorable changes in industry and competitive conditions; unanticipated impacts on our business or financial condition due to changes in currency valuation; the impact of trade and export regulations and policies; and other uncertainties disclosed in the Company's S-3 filing with the Securities and Exchange Commission on Oct. 16, 2000, as amended.