Completion of Placing

NOT  FOR RELEASE, PUBLICATION OR  DISTRIBUTION, IN WHOLE OR  IN PART, IN OR INTO
THE  UNITED STATES, CANADA,  AUSTRALIA, JAPAN, SOUTH  AFRICA, NEW ZEALAND OR THE
REPUBLIC OF IRELAND (THE "RESTRICTED JURISDICTION") OR ANY OTHER JURISDICTION IF
TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION

30 September 2010

                                    IQE plc
                     ("IQE", the "Company" or the "Group")

Further  to the  Company's earlier  announcement in  respect of its intention to
raise  £20.8 million  before expenses,  IQE is  pleased to  announce that it has
placed  65,000,000 new ordinary shares  of 1 pence each  ("Placing Shares") at a
price  of 32 pence per Placing Share (the "Placing Price"). Application has been
made  for the Placing Shares to be admitted to trading on AIM and it is expected
that admission will take place at 8.00 a.m. on 5 October 2010.

Drew Nelson, Chief Executive of IQE commented:

"We  are delighted to have completed  the Placing attracting new investment from
both  existing and  new institutional  shareholders. IQE  is now  well placed to
exploit  fully  the  organic  growth  opportunities  available  to  the  Group's
businesses"


Enquiries:

 IQE plc                          Drew Nelson       T: [phone]
                                  Phil Rasmussen
                                  Chris Meadows



 Execution Noble                  James Bromhead    T: [phone]
 (Bookrunner, Nominated Adviser   Richard Crawley
  and Broker to the Company)



 College Hill                     Adrian Duffield   T: [phone]
 (PR advisers to the Company)     Carl Franklin




This  Announcement has been  issued by, and  is the sole  responsibility of, the
Company.

Execution  Noble  &  Company  Limited  which  is authorised and regulated in the
United  Kingdom by  the Financial  Services Authority  (the "FSA"), is acting as
Nominated  Adviser and broker to  the Company for the  purposes of the AIM Rules
for  Companies and the AIM  Rules for Nominated Advisers  in connection with the
Placing and Admission and is not acting for, and will not be responsible to, any
person  other  than  the  Company  for  providing  the  protections  afforded to
customers of Execution Noble or for advising any other person on any transaction
or  arrangement  referred  to  in  this  announcement.  Execution  Noble Limited
("Execution  Noble"), which is authorised and regulated in the United Kingdom by
the FSA, is acting exclusively as financial adviser to and broker to IQE plc and
for  no one else  in connection with  the Placing and  is not advising any other
person  or  treating  any  other  person  as  its  customer in relation to or in
connection with the Placing and is not advising any other person or treating any
other  person as  its customer  in relation  to the  matters referred to in this
announcement  and will not be  responsible to anyone other  than the Company for
providing  the  protections  afforded  to  clients  of  Execution  Noble  or for
providing  advice in relation to  the Placing or any  matter referred to in this
announcement.

The distribution of this announcement and/or issue of Placing Shares pursuant to
the Placing or otherwise in certain jurisdictions outside the United Kingdom may
be restricted by law. Persons who seek to participate in the Placing must inform
themselves  about  and  observe  any  such  restrictions.  In  particular,  this
announcement  does not constitute an offer to  sell or issue or the solicitation
of an offer to buy or subscribe for Placing Shares in the United States, Canada,
Australia,  Japan, South Africa, New  Zealand or the Republic  of Ireland or any
other   jurisdiction  in  which  such  offer  or  solicitation,  publication  or
distribution is or would be unlawful.




[HUG#1448017]








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Source: IQE plc via Thomson Reuters ONE