EL SEGUNDO, Calif. — International Rectifier Corporation, IR® (NYSE: IRF) today announced that it has acquired the assets of European Semiconductor Manufacturing (ESM) and its submicron semiconductor manufacturing facility in Newport, Wales, to further support the growth in IR's proprietary products. IR's revenues from these analog ICs, advanced circuits, and power systems grew 30 percent in the most recent 12 months reported and account for half of total sales.

The $81 million cash acquisition supplements IR's manufacturing operations with approximately 80,000 sq. ft. of submicron wafer fabrication capacity as well as experienced engineers and operating staff. The facility offers leading-edge mixed-signal and analog process capabilities. Including future expansion at the Newport facility, IR plans overall capital expenditures of less than 10 percent of revenues annually. IR reported $835 million in cash and marketable securities at the end of the December quarter.

International Rectifier Chief Executive Officer Alex Lidow said, "The acquisition represents an excellent value, and it positions IR to meet the demand for our fast-growing proprietary products over the next several years, as well as our goal of 30 percent overall revenue growth in fiscal 2003. We plan to invest up to $125 million more over the next five years in line with growth needs and market conditions to bring this facility to full capacity. At this level, we expect the fab will be able to generate $750 million of revenue annually. At our nearby production facility in Penllergaer, Wales, we have benefited from a well-trained and highly experienced work force and received valuable support from the Welsh Assembly, Welsh Development Agency, and the local community. So we are excited about this significant opportunity in Newport as well."

Rhodri Morgan, the Welsh First Minister, said, "International Rectifier is recognized globally as one of the world's most advanced power semiconductor companies and the leader in the rapidly growing area of power management technology. We are pleased that once again they have chosen Wales as the location for this key strategic phase of their ongoing expansion. The new owner of this advanced semiconductor facility in Newport has a proven track record of growth, and I am delighted by their decision. It further demonstrates their long-term commitment to the Welsh economy and is great news for ESM's staff in Newport."

International Rectifier is a world leader in power management technology that improves functionality, speed, compactness, and portability in information technology and other end products. IR's analog 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. The company is the pioneer and market leader in the $4 billion power MOSFET industry, and over 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.

NOTE: 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 failure of market demand to materialize as anticipated; greater-than-expected weakness or program or order postponements in the information technology segments of our business; the effectiveness of cost controls and cost reductions; litigation and other unexpected costs associated with cost-reduction efforts, including reductions in force and the transfer and consolidation of product lines; the effectiveness of integration of acquisitions into our operations and the transfer and consolidation of product lines; the ability or the timing of the company to achieve strategic acquisitions and the effect of associated costs; the accuracy of customers' forecasts; push-out of delivery dates; product returns; market and sector conditions that affect our customers, licensees, and suppliers; introduction, acceptance, availability, and continued demand and growth of new and high-performance products; delays in transferring and ramping production lines or completing customer qualifications; company and market impact due to the cancellation of customer and/or industry programs; the company's mix of product shipments; availability of adequate capacity and unanticipated costs of refurbishment or replacement of equipment; pricing pressures; failure of suppliers and subcontractors to meet their delivery commitments; unfavorable changes in industry and competitive conditions; impact of any disruption in, or increased cost of, electricity and/or other critical supplies; economic conditions in the company's markets around the world and the timing of changes in market conditions; changes in interest and investment rates; impacts on our business or financial condition due to changes in currency valuation or to the euro conversion; impact of changes in accounting methods; the impact of changes in laws and regulations, including tax, trade, and export regulations and policies; the actual results of any outstanding litigation; and other uncertainties disclosed in the company's reports filed with the Securities and Exchange Commission, including its most recent report on form 10-K. To the foregoing factors should be added the financial and other ramifications of terrorist actions.