In the announcement of its interim results for the 6 months ended 30 November 2006 on 29 January 2007, the Company stated its intention to return an initial £10 million of cash to shareholders (by way of the B share scheme) by the end of March 2007, being the level of cash which the Board considered prudent to return given the Company's distributable reserves.

Since then, the value of the Powerwave Technologies, Inc. stock held by the Company has declined below the level at which the Board considers it prudent to undertake this initial return of cash.

The Board reaffirms its intent to reorganise its shareholder funds to create additional distributable reserves to facilitate returns of cash, in line with the timescale indicated in its interim results.