Filtronic Regulatory News (FTC)

5 February 2020

Filtronic plc

(the "Company" or "Filtronic")

CONTRACT WINS

Filtronic plc (AIM: FTC), the designer and manufacturer of products for the critical communications and wireless telecoms markets, is pleased to announce contract wins for two separate advanced mmWave design and development contracts that have strategic importance to the development of the Company and its technology roadmap.

The first contract, from a leading RF equipment company in the USA, covers the design, development and delivery of high-performance, mmWave modules for incorporation within their next generation over-the-air equipment. The project will extend the frequency range of the customer's existing offering above 50GHz (and will accommodate the new mmWave bands released following the 2019 World Radiocommunication Conference by employing Filtronic's extensive, mmWave specific, design and manufacturing know-how. The design and development order is structured around incremental development milestones over a period of approximately 16 months, for a full contract value approaching $1.0m (approximately £0.8m) with revenue predominantly recognised in FY2021.

The second contract, agreed with a leading High Altitude Pseudo-Satellite ("HAPS") solution provider in the USA, covers the design, development and delivery of next generation, high-performance transceiver modules to enable high capacity HAPS to ground and inter-HAPS data transmission using E-band frequencies. The project will push the boundaries of current E-band technology and will be based on Filtronic's class leading "Orpheus" and "Morpheus" transceiver technology platforms, providing the customer with a performance step change when compared to their current backhaul solution. The design and development order is structured around incremental development milestones over a period of approximately 18 months, for a full contract value approaching $0.6m (approximately £0.5m) with revenue predominantly recognised in FY2021.

Deliverables for both projects include the supply of prototypes for testing and pre-commercialisation evaluation units with the follow-on potential for eventual commercial supply contracts.

Reg Gott, Executive Chairman, commented: "We are delighted to have been chosen to deliver these technically challenging projects. It is another fantastic endorsement of our engineering and manufacturing capability and emphasises our position as a leading global player in the rapidly growing mmWave equipment market".

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Notes:

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.