Add. Listing/Director s/hldng

IQE PLC
10 January 2005

                                        
                            IQE plc ('the Company')
                                       
                  Additional Listing / Director's Shareholding


Application has today been made to the London Stock Exchange for 144,682
ordinary shares of 1p each in the Company ('Ordinary Shares') to be admitted to
trading on AIM. These Ordinary Shares are being issued to satisfy payment of
non-executive directors' fees for the fourth quarter of 2004.

101,493 of these Ordinary Shares, representing approximately 0.03 per cent. of
the existing issued share capital of the Company, are being issued to Dr G.H.H.
Ainsworth in settlement of his Chairman's fees for the fourth quarter of 2004.
Following this issue, Dr G.H.H. Ainsworth will be interested in 1,728,513
Ordinary Shares, representing approximately 0.55 per cent. of the issued share
capital of the Company.

Admission of all the Ordinary Shares is expected to become effective on 13
January 2005.


10 January 2005


For further information, please contact:

Leslie Coventry, IQE plc                                            02920 839400


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