Filtronic plc
Compound Semiconductor update

Filtronic is providing the following statement for its Compound Semiconductor business.
As reported in January 2007, the switch production capacity of the Compound Semiconductor business was aligned with the projected requirements of our concentrated customer base.  Our predominant customer has now advised us that its requirement for switches from Filtronic will cease in September because of their decision to in-source all production.  This will result in a substantial reduction in the level of activity for our business. 
The board has therefore decided to reduce the size of the Compound Semiconductor business accordingly. Consultations will start with affected staff over proposed job losses involving approximately 115 people.
The board is considering a full range of possibilities for the ongoing operation, including sale. The board reaffirms its objective of running the Compound Semiconductor business on at least a cash neutral basis.   

Contacts:

Filtronic plc

John Poulter, Chairman                           01274 415 325
Charles Hindson, Chief Executive            07800 706 319 (mobile)

Parkgreen Communications Ltd             020 7493 3713
Paul McManus                                      07980 541 893 (mobile)