Statement re Reorganisation

Filtronic PLC
26 January 2004

For release  26 January 2004


                                    Filtronic plc

                Statement of reorganisation of business segments


Filtronic plc, a leading designer and manufacturer of customised microwave
electronic subsystems for the wireless telecommunications and defence
industries, announces a reorganisation of its business segments into four units.


Regarding the reorganisation, Professor J David Rhodes CBE FRS FREng, Executive
Chairman, made the following statement:


'Following our success in being selected by an Original Equipment Manufacturer
('OEM') customer to supply initial quantities of integrated radio frequency head
units containing power amplifiers, the Board of Filtronic plc has decided to
reorganise Filtronic's business segments into four units. This is to ensure that
the company is best positioned to address the challenges of moving from the
development stage into production with a broad range of new products. Many of
these will incorporate compound semiconductor devices from our fabrication
facility at Newton Aycliffe.


The Wireless Infrastructure business segment will continue to address the
leading OEMs by supplying radio frequency front end products for wireless base
stations, including power amplifiers.


The Handset Products business segment, which supplies antennas for mobile
handsets, remains unchanged.


The third business segment, to be called Integrated Products, will incorporate
activities previously included in the Broadband Access, Electronic Warfare and
Compound Semiconductor business segments. This business will be responsible for
the development, manufacture and supply of the compound semiconductor devices,
which increasingly will form the basis of higher value Filtronic products
addressing a range of markets. Such devices will include the high performance,
high power modules for the base station power amplifier products.


Each of these business units is to be headed by a Chief Executive Officer or
Managing Director who will report directly to me.


A fourth business segment, Central Services, will incorporate the digital signal
processing expertise of Filtronic Sigtek together with a small research and
development team based in Saltaire and other group administrative services. The
greater part of the central development group which has been involved in
particular in recent years with the power amplifier products has now been
reallocated either to the Wireless Infrastructure business or the Integrated
Products business as appropriate to facilitate the move to production
quantities.


To aid understanding of the financial performance of these new business units,
we have set out below the Business Segment analysis of sales and operating
profit (after charging goodwill amortisation and share compensation charges) for
the six months ended 30 November 2002 and the year ended 31 May 2003 in their
restated form.


The Board of Filtronic plc expects to announce the results for the six months
ended 30 November 2003 on Monday 2 February 2004.'



Business segment analysis                                    6 Months Ended               Year Ended
                                                           30 November 2002              31 May 2003

Sales                                                                  £000                     £000


Wireless infrastructure                                              81,454                  151,715
Handset products                                                     24,324                   51,242
Integrated products                                                  17,402                   37,443
Central services                                                      1,219                    1,771
Inter segment                                                         (530)                    (903)
                                                                    123,869                  241,268

Operating profit


Wireless infrastructure                                              13,443                   20,962

Handset products                                                      5,173                   10,834
Integrated products                                                (14,203)                 (19,344)
Central services                                                    (2,965)                  (5,737)
                                                                      1,448                    6,715


Note that the operating loss of Integrated Products is after charging
exceptional closure costs of £2,719,000 (Six months ended 30 November 2002) and
£1,812,000 (Year ended 31 May 2003).


Professor J D Rhodes CBE FRS FREng

Executive Chairman


26 January 2004.


Contacts:


Filtronic plc

Professor J David Rhodes CBE FRS FREng (Executive Chairman)                01274 530622

John Samuel (Financial Director)                                           01274 530622


Binns & Co PR Ltd

Peter Binns                                                                020 7786 9600

Paul McManus                                                               07980 541 893

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