Trading Update

Filtronic PLC
22 November 2000

FILTRONIC PLC: TRADING UPDATE

Ahead of briefings with analysts and institutional investors, Filtronic plc is
issuing the following statement on current trading.

'Further to our statement issued on 29 September 2000 and as outlined in the
statement issued on 31 July 2000, in our Wireless Infrastructure business,
which represents approximately 70% of our sales, our position as primary
supplier to three major OEM customers on their new generation base station
programmes remains secure.  In particular, our operations in the UK, Finland,
China and the USA are trading strongly, profitably and ahead of our
expectations with volume shipments of GSM, TDMA and CDMA subsystems.
Additionally, in Australia, shipments have commenced for WCDMA products to a
major Japanese OEM.

We expect demand for these products to remain robust throughout the rest of
this financial year and beyond, although, as we have previously emphasised on
numerous occasions, the timing of customers' manufacturing programmes can
cause significant fluctuations in short term performance.

With regard to the development of power amplifiers for base stations, work is
now well advanced.  We have demonstrated WCDMA power amplifiers which are much
more efficient than those currently in the market.  The digital signal
processing technology which the acquisition of Sigtek Inc. has brought to
Filtronic will enable the use of low cost RF filters in these products.  This
has led to further efficiency improvement and cost reductions.  Furthermore
this will mean that these new products will be compatible with existing
narrowband CDMA (IS 95) systems.  We expect these new products to come to
market in the next financial year.

In Cellular Handset Products, our antenna business has continued to grow
strongly as our position as the second largest supplier of handset antennas is
consolidated.  Our market share is increasing with the market shift towards
internal antennas continuing as anticipated.  Sales and profitability in this
division are in line with expectations.  Antennas represents two thirds of our
Cellular Handset Products sales.  In July, our new enlarged facility for the
manufacture of ceramic diplexers was commissioned, however, customer demand
for these products has not risen in line with their previous indications with
certain new phone programmes for new and existing customers being delayed
until the first quarter of 2001 calendar year.  In total, we expect our
Cellular Handset Products division to exceed the sales achieved in the
financial year ended 31 May 2000 although performance in this business segment
will be weighted towards the second half.

The Electronic Warfare business has traded weakly to date although order
backlog is strong.  The shipment of certain major subsystems in the second
half of the financial year should have a significant positive impact on the
financial results of this business segment.

The transfer of Broadband Access activities from California to the UK has
proceeded in line with plans and automated production capacity at Newton
Aycliffe is expected to be brought on stream in the second half of the
financial year.  Our ability to produce millimetre wave products in high
volumes will significantly improve our position in this rapidly expanding
market.

In the Compound Semiconductor business segment, demand for a range of products
from our Santa Clara facility is ahead of expectations.  At Newton Aycliffe,
the facility has now processed hundreds of six-inch wafers with a range of
different D-Mode and E-Mode Gallium Arsenide PHEMT devices to demonstrate
capability, production consistency and yield to prospective customers.  These
products and processes can address the optical market as well as that for
mobile handsets and base stations.  During the last few months, a range of
proprietary products to address these markets have been and are being
developed.

These key product developments are strategically directed towards integration
into higher added value subsystems for our major businesses.  Nevertheless, it
remains difficult to estimate when high volume demand will materialise and
therefore when the Newton Aycliffe site will become profitable.

We continue to invest in new product development where we believe there are
significant market opportunities and where they have synergies with our
existing businesses.

In summary, our two major businesses, which account for 85% of our sales,
continue to trade strongly and profitably, to increase their market share and
to supply highly customised products to the principal wireless communications
OEMs.  Our position in the forthcoming third generation base station and
handset markets is excellent and will be further enhanced by the introduction
of our range of high performance compound semiconductor devices from Newton
Aycliffe and our base station power amplifier products.'

Professor J. D. Rhodes CBE, FRS, FEng
Executive Chairman

22 November 2000

Enquiries

J. Samuel / C. E. Schofield
Filtronic plc
Tel: [phone]