Filtronic plc confirms that it has today posted a circular to shareholders (the “Circular”) in relation to the proposed disposal of its Wireless Infrastructure Business to Powerwave Technologies, Inc. (“Powerwave”) and the creation of B-shares to enable an effective return of cash. In accordance with the UKLA listing Rules, the Circular has today been delivered to the UKLA for publication through its Document Viewing Facility at:

UK Listing Authority
25 The North Colonnade
Canary Wharf
London E145 5HS

As set out in the Circular, the Board intends to return to shareholders, via a B-share scheme, substantially all of the proceeds from the sale of consideration stock in Powerwave plus £18.5 million. The net cash proceeds of approximately £92.4 million, less £18.5 million, will be used to repay debt, to finance up to £15 million of investment in Filtronic Compound Semiconductors, and to retain approximately £22.5 million for working capital purposes. The balance of approximately £24 million will be retained by Filtronic plc as a provision towards any warranty commitments to Powerwave for the 12 months after completion of the sale to Powerwave and other contingent liabilities that may arise with changes in the continuing Group’s structure.

If approved by shareholders at the EGM convened for 29 September 2006, the return of cash will involve the creation of up to 2,600,000,000 non-cumulative redeemable preference shares of 5p each, having the rights and restrictions set out in the articles of association of the Company, as proposed to be amended pursuant to the resolutions being proposed at this EGM.

Enquiries

Filtronic plc:
Professor J David Rhodes, Group Chief Executive
Tel: 01274 530622 / Mob: 07850 827 280
Charles Hindson, Group Finance Director
Tel: 01274 530622 / Mob: 07800 706 319

Parkgreen Communications Ltd:
Paul McManus
Tel: 020 7493 3713 / Mob: 07980 541 893