At the meeting Professor David Rhodes, Chairman, intends to make the following statement to shareholders:

"At last year's AGM, I announced the Board's intention to dispose of the Handset Products business with the primary objective of repaying long term debt, which has been a burden to Filtronic in a period of market recovery. I am pleased to advise that the disposal was completed on 8 September for an initial consideration of €67 million (approximately £46.6m, or approximately $82.8m) and, in consequence, we have repaid the long term debt of £44m.

Since the end of the last financial year we have decided to discontinue a loss-making Wireless Infrastructure operation in Australia and to restructure our sales approach in merchant semiconductors, closing a sales office in the US. These decisions were implemented in the first quarter and the costs will be borne in the current half-year. Underlying trading performance is in line with expectations and the results for this half-year will include the full impact of closure and restructuring costs of around £1 million.

The anticipated performance for the full financial year to 31 May 2006 remains in line with expectations including absorbing the closure and restructuring costs borne in the first half-year.

In the preliminary announcement of 1 August 2005, I also indicated the importance to Filtronic of achieving an aggressive ramp-up in semiconductor output from the Newton Aycliffe foundry in Integrated Products to service demand for handset switches from our major customer, RF Micro Devices. I am pleased to report that we are in line with our plan, with a greater than six-fold increase in wafer output (to over 230 wafers a week) over the last six months."

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