Trading Statement

Filtronic plc ("Filtronic")

Trading Update

Filtronic plc ("the Company") notes last night's announcement by Nasdaq quoted Ceragon Networks Ltd. ("Ceragon") that it has acquired Nera Networks AS ("Nera") from Eltek ASA.

Nera has been a key customer of Filtronic's point-to-point ("PTP") business for several years.

Whilst it is too early to know what effect this latest round of industry consolidation will have on Nera's future business with Filtronic, the Company notes that Ceragon is a vertically-integrated producer of PTP systems and as such may choose over time to substitute its own products for some of those currently produced by Nera or supplied by Filtronic to Nera.

The Board is in dialogue with Nera seeking to clarify likely order patterns for the future, but believes it prudent to plan for various scenarios including a potentially significant reduction in PTP sales to this customer.

Further updates will be announced as appropriate.

The Company intends to announce its interim results for the six months ended November 30th 2010 on January 31st. Meanwhile, Filtronic reports that, two months after the completion of the acquisition of Isotek, integration of the newly acquired business is progressing ahead of plan and customer orders and opportunities for the base station business are encouraging.

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