Acqn.from Fujitsu Limited

FILTRONIC PLC 2 August 1999 FILTRONIC PLC: UK ACQUISITION FROM FUJITSU LTD HEADS OF AGREEMENT TO PURCHASE SEMICONDUCTOR FACILITY IN DURHAM Filtronic plc ('Filtronic'), a world leader in microwave technology and manufacturing telecoms components for cellular base stations and cellular handset products, announces that it has entered into heads of agreement with Fujitsu Limited to acquire its semiconductor facility at Newton Aycliffe, County Durham for an undisclosed consideration. The agreement is conditional upon Filtronic receiving financial assistance from the Department of Trade and Industry ('DTI') on terms satisfactory to Filtronic. Completion is scheduled for the end of August. The Newton Aycliffe facility is 310,000 square feet in size situated on a 106 acre site. The facility contains a very high quality 100,000 square foot Class 10 clean room, enabling manufacture of advanced high resolution semiconductors. Filtronic already owns a first class 3 inch Gallium Arsenide ('GaAs') fabrication and semiconductor design facility at a US subsidiary, Filtronic Solid State ('FSS') in Santa Clara, acquired in October 1998. Over the last several months, Filtronic has been looking at options to expand its GaAs manufacturing capacity. Subject to obtaining appropriate support from the DTI, Filtronic believes that the Newton Aycliffe facility offers the best available option. Filtronic intends to utilise the proprietary materials technology and design expertise developed at FSS to establish volume GaAs Pseudomorphic High Electron Mobility Transistor ('PHEMT') semiconductor fabrication at the Newton Aycliffe facility. Manufacture at Newton Aycliffe will be on 6 inch GaAs wafers for sale as discrete semiconductors and for incorporation into proprietary designed integrated products developed for the mobile cellular handset and wireless infrastructure markets. Professor J David Rhodes, OBE FRS FREng, Executive Chairman of Filtronic plc, said: 'We are delighted to agree terms with Fujitsu for the acquisition of such a high quality facility, which will rank amongst the first and largest 6 inch GaAs foundries in the world. I believe that GaAs will have the same impact on the information technology and communications revolution as silicon has had in the past.' He added: 'The facility gives us the opportunity to utilise our outstanding GaAs materials technology in FSS and to apply it to volume opportunities presented by the cellular handset and wireless infrastructure markets. We estimate that this development will lead to the creation of over 500 new jobs within five years. The acquisition is dependent upon financial support from the DTI. We shall continue to work closely with the DTI and other members of the local economic support network who, to date, have all reacted positively to our proposals, to complete the acquisition successfully.' Enquiries: Christopher Schofield, Director, Filtronic plc 01274 530622

Companies

Filtronic (FTC)
UK 100

Latest directors dealings