Talks Re. Newton Aycliffe

Filtronic PLC
22 May 2001

For Immediate Release

22 May 2001



FILTRONIC PLC:

- PROPOSED JOINT VENTURE FOR NEWTON AYCLIFFE PLANT



Filtronic plc ('Filtronic'), a leading global designer and manufacturer of a
broad range of microwave and millimetre wave radio frequency components and
subsystems, announces that it is in ongoing discussions with a leading
international aerospace and defence OEM to form a joint venture company based
upon the infrastructure located at Filtronic's Newton Aycliffe compound
semiconductor facility.



The proposed new company will offer to both shareholders the supply of
advanced compound semiconductors and the use of an automated microwave
factory, capable of supplying cost effective microwave electronic subsystems
in volume manufacturing quantities.  Key products for Filtronic would include
high power gallium arsenide transistors for power amplifiers in 3G base
stations, customised microwave monolithic integrated circuits for millimetre
wave broadband wireless products and photonic components.  It is intended that
the microwave factory will supply Filtronic with complete amplifier and
transceiver subsystems for both commercial and defence requirements.



Further development for defence systems requirements will lead to the
production of compound semiconductor devices suitable for both phased array
radars and electronic countermeasure systems. Additional capacity in the
microwave factory would enable the production of high performance, cost
effective, microwave electronic subsystems for various defence systems in
addition to Filtronic's own supply to EuroDass and Euroradar for embodiments
in the Typhoon avionics system.



It is also envisaged that there will be one or more selected third party
customers for the compound semiconductor products, which do not compete with
the principal shareholders' businesses.  Overall, this would lead to a
significant proportion of the manufactured output for both compound
semiconductor products and the microwave factory being for commercial
applications.  This, in turn, would enable the products within the defence
related business to be produced to a high quality in a very cost effective
manner, which normally could not be achieved due to the relatively limited
level of demand for defence products.



It is further proposed that the new company will benefit from an equity
injection by the OEM which will enable it to expand the types of compound
semiconductors which can be manufactured and increase the capacity in the
microwave factory.  This would result in the new company having sufficient
capital to fund current and future working capital requirements until it
becomes profitable and self-sustaining.



The board of Filtronic plc will make a further announcement regarding the
proposed joint venture at a later date as appropriate.



Enquiries:



Filtronic plc                                       Tel: [phone]

Professor David Rhodes                              Executive Chairman & CEO,
Filtronic plc                               

John Samuel                                         Finance Director,
Filtronic plc



Binns & Co PR Ltd                                   Tel: [phone]

Peter Binns/Paul McManus