- 12 September 2006 -

Powerwave Revises Sale Agreement To Acquire The Wireless Infrastructure Business Of Filtronic

Powerwave Technologies, Inc., and Filtronic plc have revised the terms of their previously announced transaction whereby Powerwave would acquire the majority of Filtronic's Wireless Infrastructure division business. The amended terms consist of a combination of US$185 m in cash and 17.7 m newly issued shares of Powerwave common stock.

Previously, the companies had announced on June 12, 2006 that they had signed a definitive agreement for Powerwave to acquire the majority of Filtronic's Wireless Infrastructure division business for a combination of US$150 m in cash and 20.7 m newly issued shares of Powerwave common stock.

The specific product lines included in this proposed transaction comprise transmit/receive filters, integrated remote radio heads and power amplifier products, all for use in commercial wireless infrastructure base station equipment. The proposed acquisition does not include point-to-point radio backhaul equipment, as well as Filtronic's other divisions, of Compound Semiconductors and Defence Electronics. The board of directors of both Powerwave and Filtronic have approved the revised agreement.

The transaction is subject to the approval of Filtronic's shareholders. The board of Filtronic expects to post a circular putting this proposal to shareholders shortly. Subject to shareholders having approved the proposal, the transaction is expected to be completed in the September/October timeframe.

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