Trading Statement

Filtronic PLC
20 May 2002


                        Filtronic plc - Trading Update


Filtronic plc, a leading designer and manufacturer of customised microwave
products, issued the following statement with respect to current trading, ahead
of a visit by analysts and institutional investors to its operations at Kempele,
near Oulu, Finland, on May 22. The plant was purchased from Nokia in September
1998 and is a design and manufacturing operation for 3G WCDMA base station
products and also produces antennas and ceramic diplexers for cellular handsets.
Professor JD Rhodes CBE, FRS, FREng, Executive Chairman of Filtronic plc, said:

'In recent weeks, the major original equipment manufacturers ('OEM's') in the
wireless infrastructure and cellular handset markets have issued statements
outlining their views on the prevailing market conditions and on the near term
outlook for those markets. Their views can be summarised as stating that market
conditions for the wireless infrastructure market have been challenging and they
have reported lower than expected sales in the first quarter of this calendar
year. Their outlook for the rest of this calendar year indicates that this
market will decline by 10% or more when compared to 2001. With regard to the
cellular handset market, their consensus view is that the total volume of
handsets to be sold in 2002 will grow from approximately 390m in 2001 to between
400m and 420m.

Within this difficult market environment some companies, including Filtronic,
have performed better than others. I expect that total sales for Filtronic in
the second half of the current financial year will have declined slightly when
compared to the first half.  Operating Profit before Goodwill Amortisation and
Impairment and Share Compensation will show a substantial improvement.

In the second half of this financial year, sales in our Wireless Infrastructure
business are expected to be lower than in the first half. This is mainly due to
the market conditions experienced by our customers but also due to the impact of
Filtronic's cost reduction programmes. The benefit of these programmes, together
with forecasted improvements in operational efficiency and reductions in the
cost base, is illustrated by our increased market share and improved operating
margin. I expect sales in the Cellular Handset Products business segment to show
a small increase when compared to the first half.

Each of our two major businesses is expected to achieve higher levels of
Operating Profit before Goodwill Amortisation and Impairment and Share
Compensation than was reported in the first half of this financial year.

The Electronic Warfare business has shown some improvement and I expect it to be
profitable in the second half. The Broadband Access business has suffered from
much lower demand for its current transceiver products and, consequently, the
financial result has deteriorated. The Compound Semiconductor business at
Filtronic Solid State has improved its order intake and increased sales slightly
with a consequent reduction in operating losses.

At our compound semiconductor facility at Newton Aycliffe in the UK, several
processes have been developed to enable the M/A-COM Inc. agreement to progress.
The first sales to M/A-COM will be recorded in June. The rate of increase in and
the ultimate level of the business with M/A-COM is dependant on their success in
the related end markets, the principal one of which is the cellular handset
market. The technical development relationship with BAE SYSTEMS Avionics Ltd is
progressing well although the principal resultant business opportunities are not
in the near term. Significant progress has been made in the technical
development of high power compound semiconductors for highly efficient linear
power amplifier applications. Following hardware demonstrations, we have been
asked to supply sample power amplifier subassembly units to two major OEMs.
These units are designed for incorporation into 3G WCDMA base stations.

Looking to our next financial year to 31 May 2003, general market conditions and
uncertainty over the timing of the roll out of 3G WCDMA equipment is currently
creating an unpredictable environment. Growth in both our Wireless
Infrastructure and Cellular Handset Products businesses is dependant upon the
timing and extent of this roll out.

I believe that when substantial 3G roll out occurs, it will provide excellent
growth for Filtronic with our existing product range of base station transmit/
receive modules and tower top amplifiers and also for our handset antennas and
ceramic diplexers. Our increased market share and our position as the number one
independent supplier in both of our major businesses underpins these growth
opportunities.

Additional growth is expected through our compound semiconductor based power
amplifier units for base station transmitters.

Our cash position continues to be satisfactory and we are not utilising any of
our £31m bank overdraft facility, after buying in $29.75m of the 10% Senior
Notes in February 2002. The remaining $140.25m of these Notes comprises the
whole of the company's outstanding debt.'


Professor JD Rhodes CBE, FRS, FREng.
Executive Chairman
20 May 2002.


ENDS


Filtronic plc - Tel: [phone]                    Binns & Co PR Ltd - Tel: [phone]
Professor David Rhodes, Executive Chairman            Peter Binns
Chris Schofield, Director & Company Secretary         Paul Vann
                                                      Paul McManus
John Samuel, Finance Director
Mob: [phone]



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