Boston, MA - October 25, 2007 -The Strategy Analytics GaAs service report, "Filtronic - Life after RFMD," strongly recommends that Filtronic management strike off the option to close the Filtronic compound semiconductor operations, noting that Filtronic continues to develop a sustainable position in both high volume and high value markets.

Filtronic was ranked twelfth in the Strategy Analytics GaAs device vendor share rankings in 2006, and was the largest European GaAs device supplier in 2006. For 2007, Filtronic has continued to secure multiple orders for its pHEMT switch wafers driving volume throughput, as well as seeing strong demand from higher value infrastructure and defense markets. The study notes that this focus on both high volume and high value segments will position Filtronic in mutually exclusive markets and gives Filtronic the balance required for sustainable growth.

"Filtronic still faces some significant challenges if this multi-pronged strategy is to be successful," observes Asif Anwar, Director of the Strategy Analytics GaAs service. "Specifically, the company needs to concentrate on expanding its design and process capabilities, further develop its product lines and target high margin sectors."

"We believe that the optimum solution for customers, employees and shareholders alike would be to sell to a company in similar or adjacent markets creating opportunities to capitalize on Filtronic's existing capabilities, growing strength and strategic position as a UK-European supplier of compound semiconductor technology," notes Stephen Entwistle, VP Strategic Technologies.