Filtronic, designer and manufacturer of microwave electronic subsystems for the wireless telecommunications and defense industries, has agreed to sell its Kempele, Finland-based mobile handset antenna business, LK Products Oy (LK), to Technitrol, Inc., a producer of electronic components and electrical contact products, for approximately €67 million, or $82.8 million. In addition, the terms of the purchase include a revenue-based deferred consideration whereby Technitrol will pay Filtronic one Euro for each Euro of revenue in excess of €85 million achieved by LK for the 12 months ending May 31, 2006. Closing of the transaction is expected before Sept. 30, 2005.

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The consideration proceeds are being financed either entirely with cash on hand or with a combination of cash and credit under Technitrol’s multicurrency credit facility.

Said John Roulston, Filtronic CEO, “Filtronic will use the proceeds to eliminate its long-term bank debt, thereby freeing the company to take more advantage of the growing wireless infrastructure market. Technitrol, on the other hand, will gain immediate market share in a business sector where its volume production methods and material sourcing capacity can contribute efficiencies and its market imprint can accelerate diversification.”

“Filtronic will continue to cooperate technologically with LK Products so that strategic plans for the ongoing group are preserved by this sale. Throughout the sale process we became very impressed by the outlook of Technitrol’s management and we firmly believe our technology cooperation will bring future business opportunities for both of us.”

The LK business will be the cornerstone of the antenna products division within the newly formed signal products group at Technitrol’s Pulse unit.

“LK is a cutting-edge antenna and wireless component integration business that will give Pulse a very strong presence in the rapidly advancing wireless communications market,” said Technitrol Chairman and Chief Executive Officer James M. Papada, III. “With an estimated 16% of the global market, LK is the world’s number-two supplier of handset antennas, with solid positions at Nokia, the world’s leading cell phone maker, and Samsung, the fastest-growing major cell phone producer. To the combined business, Pulse brings global manufacturing disciplines, marketing expertise and customer relationships that will facilitate expansion of existing markets and entry into new markets.”