EL SEGUNDO, CA, October 14, 1999 -- International Rectifier Corporation (IRF/NYSE) today reported net income of $5.1 million ($0.10 per share) on revenue of $152.2 million in the quarter ended September, versus $34 thousand ($0.00 per share) on revenue of $127.5 million in the year-ago quarter. Revenue increased 19 percent year-to-year and rose three percent sequentially, in a period that typically shows seasonal revenue decline.

The Company reported that September-quarter orders rose by 42 percent year-to-year and 10 percent sequentially, reaching a record level. Shippable backlog for the December quarter is about 20 percent above the level entering the September quarter. Sell-through of IR product in the distribution channel set new records.

Dr. Alexander Lidow, Chief Executive Officer, commented, "Business fundamentals continue to strengthen: The recovery is spreading to a broader geographic base, end consumption continues to rise, sales visibility is improving, pricing is firming, and IR is building momentum with new design wins."

The Company's September-quarter revenue increase reflected strong telecom and PC demand. Total unit shipments increased 45 percent year-to-year and 11 percent sequentially. Royalties contributed $7.4 million in the quarter, compared to $8.0 million in the preceding and $4.4 million in the year-ago quarters.

Gross margin was 31.7 percent, compared to 28.4 percent in the year-ago period. Gross margin in the immediately-preceding quarter was 28.8 percent (26.9 percent including the one-time effect of the SOP 98-5 change in accounting standards). The gross margin increase reflected a higher proportion of revenue from proprietary products, lower manufacturing costs, and better pricing.

Shipments of new products into digital cell phones, systems using Intel's Pentium® III and AMD's AthlonTM microprocessors, and power supplies for routers and servers rose sharply during the quarter. Proprietary products earned IR top positions on a market-leading new electronic game system and on a major new communications satellite program.

Dr. Lidow noted, "We expect revenue growth to accelerate in the December quarter and through the fiscal year. A richer business mix, lower cost structure, and continued price stability will expand gross margins, and lower overhead expense ratio will contribute positive earnings leverage."

Unaudited Consolidated Statement of Income
Consolidated Balance Sheet

International Rectifier provides enabling technologies for products that work smarter, run cooler, and increase productivity per watt. IR sets the standard for performance and system architecture in power electronics for next-generation products in portable electronics, internet infrastructure, industry, automotive, satellites, and home appliances. Our patented HEXFET® power MOSFETs, High-Voltage ICs, modules and subsystems, and related components make IR a world leader in power conversion.

The foregoing material contains some forward-looking statements. 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 delays in or higher-than-anticipated expenses associated with implementing planned cost reductions; the effectiveness of cost controls; the impact of changes in accounting methods; the impact of export controls; delays in transferring and ramping production lines or completing customer qualifications; the accuracy of customers' forecasts; the rate of customer inventory adjustments; push-out of delivery dates; product returns; changes in customers' order patterns; the Company's mix of product shipments; market and sector conditions that affect our customers and licensees; pricing pressures; acceptance of competitors' products; introduction, acceptance, and availability of new products; the ability of suppliers and subcontractors to meet their delivery commitments to the Company; impact on the Company's business due to internal systems or systems of suppliers and other third parties adversely affected by year 2000 problems; continued improvement in economic conditions in the Company's markets around the world; and other uncertainties disclosed in the Company's filings with the Securities and Exchange Commission.

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