AlGaN/GaN two dimensional electron gas (2DEG) heterostructures were grown by ammonia-MBE on sapphire and SiC substrates. Devices fabricated from these optimized HFET layers, with optically defined gates showed excellent characteristics, e.g. a maximum drain current density of 1.3 A/mm, maximum transconductance of 220 mS/mm, fT of 15.6 GHz and fMAX of 58.1 GHz was measured for devices with 0.9 μm gate length and 40 μm gate width. Shorter gate length devices exhibited higher frequency responses: fT of 68 GHz and fMAX of 125 GHz for 0.25 μm gate length and fT of 103 GHz and fMAX of 170 GHz for 0.15 μm gate length. However, these devices showed “current collapse” when subjected to load pull measurements. Current collapse was also observed in sequentially repeated DC measurements in the dark, both on sapphire and SiC substrates, although the degree of collapse varied greatly from one wafer to another. One method of reducing the current collapse was to apply a thin (100 - 6000 Å) magnetron sputtered AlN passivation layer (over the gates) or a 500 Å layer under the gates so that MISFET devices were obtained. The electrical characteristics of the passivated and unpassivated devices are discussed.