EL SEGUNDO, CA, April 15, 1999 -- International Rectifier Corporation (IRF/NYSE) today reported net income of $4.0 million ($0.08 per share) on revenue of $137.6 million in the quarter ended March, compared to $3.3 million ($0.06 per share) on revenue of $140.4 million in the prior-year quarter. Current-quarter results include a $7.6 million pre-tax benefit related to a new patent license agreement and previously-announced charges of $4.2 million associated with moving manufacturing from the Company's operation in Great Britain and streamlining worldwide sales and administration. Excluding non-recurring items, International Rectifier reported net income of $1.8 million ($0.04 per share).

The Company reported that order input during the quarter rose more than 20 percent sequentially. Derek Lidow, Chief Executive Officer, commented, "We are clearly encouraged by the acceleration in orders during the quarter. Our shippable backlog entering the June quarter is well ahead of the prior quarter, fueled by a significant increase in distributor orders, as well as add-on orders for recently-introduced proprietary products. And SIA data shows that market price declines continue to moderate."

In the quarter ended March, revenue increased sequentially by $4.7 million, as higher demand in North America and Asia Pacific more than offset a decline in Europe. IR's unit shipments increased 25 percent year-to-year and 7 percent sequentially. Royalties contributed $7.4 million in the quarter, compared to $6.7 million in the preceding and $4.3 million in the year-ago quarters.

March-quarter gross margin was 29 percent, unchanged sequentially. The Company's year-ago gross margin was 31.7 percent. The year-to-year comparison reflected substantial price declines, which moderated in recent months.

Dr. Lidow commented, "Last quarter, the Company gained significant design wins in cell phones, PC motherboards, industrial and appliance motor controls, and automotive and lighting applications. In light of current business conditions, we now expect sequential revenue growth in a range of $7 to $12 million in the June quarter. The concentration of incremental revenue in price-competitive Asian markets will limit our ability to improve gross margin, but below-the-line cost controls will contribute positive earnings leverage."

Major product introductions during the quarter included high-voltage power MOSFETs based on new processes that achieve benchmark performance in demanding power-supply applications and a family of new low-voltage power MOSFETs that dramatically increase efficiency in portable electronics. Shipments of IR's latest-technology devices for portable electronics and home appliances increased sharply.

During the quarter, International Rectifier began transferring high-volume assembly lines from its operation in Great Britain to its facility in Tijuana, Mexico and streamlining its worldwide sales and service organization. These measures are expected to save approximately $5 million in fiscal year 2000 and $13 million annually thereafter.

In March, the Company entered into a royalty-bearing license agreement with Shindengen Electric Manufacturing Company under IR's power MOSFET/IGBT patents. International Rectifier pioneered and holds the fundamental patents for these advanced-technology power transistors. To date, more than 20 competitors have taken licenses under IR's patents.

For the nine months ended March, International Rectifier reported net income of $23.8 million ($0.46 per share) on revenue of $397.9 million, compared to net income of $16.1 million ($0.31 per share) on revenue of $418.1 million in the comparable year-ago period.

In conformance with SOP 98-5, a new policy mandated by the Accounting Institute of Certified Public Accountants (AICPA), the Company noted that it is required to change the accounting treatment of certain start-up costs. In the June quarter, IR plans to take a charge of between $50 and $70 million associated with costs incurred in previous periods.

Unaudited Consolidated Statement of Income
Consolidated Balance Sheet

International Rectifier is a major worldwide supplier of power semiconductors, which convert electrical energy to operate power supplies, motor drives, and lighting ballasts. Its patented HEXFET^® power MOSFETs and IGBTs make IR the world leader in field effect transistors. The Company's technological advances improve the performance and energy efficiency of electronic and electrical equipment in automotive, consumer, computer/peripheral, industrial, lighting, telecom, and government/space applications.

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; impact on the Company's business due to internal systems or systems of suppliers and other third parties adversely affected by year 2000 problems; general 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.

NOTE: A conference call for investors will begin today at 2:15 pm Pacific time. Participants can join the call by dialing 212.896.6074. A taped replay of the call will be available through 12:00 noon Pacific time on Tuesday, April 20. The phone number to hear the replay is 800.633.8284. Please refer to reservation #1163 5918 when you call to hear the recording.

Company contact: Shelley Wagers, 310.726.8512.