EL SEGUNDO, CA, -April 26, 2001 - International Rectifier Corporation (IRF/NYSE) grew revenues by 39 percent year-to-year and posted record earnings in its third fiscal quarter. Net income climbed 121 percent year-to-year, to reach $47.9 million (or $0.73 per share) on revenues of $276.0 million, compared to income before extraordinary charge of $21.7 million (or $0.38 per share) on revenues of $198.0 million in the prior-year quarter. Including the impact of the charge, net income in the year-earlier quarter was $16.9 million.

The company's proprietary product revenues grew 25 percent quarter-to-quarter and 119 percent year-to-year. Analog power ICs, advanced-circuit devices, and power systems represented 37 percent of total revenues, up from 31 percent in the preceding quarter and 24 percent in the year-ago quarter. Component product revenues declined 7 percent sequentially, reflecting a drop-off in the multi-market products that account for about 30 percent of the company's business. Year-to-year, component revenues grew 15 percent.

Orders for proprietary products climbed 38 percent sequentially and 174 percent year-to-year. For the first time, these products constituted more than half the company's total bookings. Orders for components dropped, as market conditions worsened and leadtimes declined for multi-market products. Overall orders declined 17 percent sequentially but increased 3 percent year-to-year.

Gross margin for the quarter reached 41.6 percent, up from 40.7 percent in the immediately-preceding quarter and 36.6 percent in the year-ago quarter. The increase reflected a greater proportion of proprietary products, cost reductions, and higher royalties. Gross margins on incremental sales reached 70 percent and exceeded the company's long-term goal of 45 to 50 percent.

Royalties contributed $13.6 million in the quarter, compared to $12.6 million in the preceding quarter and $10.2 million in the year-ago quarter.

During the March quarter, the company was awarded a number of important design wins in target market sectors. Advanced-circuit devices from International Rectifier were designed into the new Xbox from Microsoft, multiple programs for Pentium® III mobile SpeedStepTM and Pentium® IV desktop microprocessors from Intel, and four new PDA programs at Palm and Compaq. IR's analog power ICs earned exclusive design wins in a new flat-panel TV program from Fujitsu and new energy-saving home appliances from Miele and Electrolux. Proprietary power systems and advanced-circuit devices from International Rectifier were designed into three new automotive systems and four new satellite programs.

With mounting weakness in multi-market products, International Rectifier revised the company's outlook. The company now anticipates June-quarter revenues 7 to 14 percent below the March-quarter level, but 2 to 11 percent above the prior-year quarter. Fiscal 2002 revenues are now anticipated to grow in a range of 20 to 25 percent, rather than the company's previous target of 25 to 30 percent.

Chief executive officer Alex Lidow commented, "Clearly, we face challenging market conditions in the near-term, but International Rectifier's leadership in power management continues to provide significant benefits. By the end of fiscal 2002, we expect to derive more than half the company's revenues from higher-margin proprietary products that are priced to value. We are maintaining optimal capacity utilization, at about 90 percent. And we have substantially reduced the capital intensity of our business over time. We anticipate that market conditions could improve as early as the September quarter. In the interim, we believe our business model, operating disciplines, and strong balance sheet support IR's inherent profitability and reduce our exposure in down markets. In our view, International Rectifier is well-positioned to continue outperforming our industry."

Unaudited Consolidated Statement of Income
Consolidated Balance Sheet

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 power ICs, advanced-circuit devices, power systems, and components enable Internet hardware to gain speed and reliability, allow portable electronics to run longer off of 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 $4.3 billion power MOSFET industry, and 9 of the industry's top 10 power MOSFET suppliers are licensed under its patents. IR serves market leaders around the world, and about two-thirds of its revenues 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 failure of market demand to materialize as anticipated; the effectiveness of cost controls and cost reductions and the integration of acquisitions into our operations; 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 proprietary 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; product returns; 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 S-3 filing with the Securities and Exchange Commission ("SEC") on October 16, 2000, and the company's reports filed with the SEC, including its most recent reports on forms 10-K and 10-Q.

NOTE: A conference call will begin today at 5:15 pm Eastern daylight time

(2:15 pm Pacific daylight time). Participants can join the call by dialing 212.271.4622 or by logging onto the Internet at http://www.vcall.com, or http://www.streetfusion.com at least 15 minutes ahead of the start time. A replay of the call will be available through 7:15 pm Eastern daylight time (4:15 pm Pacific daylight time) on Tuesday, May 1. To hear the replay, phone 800.633.8284 (for international callers, 858.812.6440) and use reservation # 1832 479.