Contract Win

IQE PLC
22 August 2007



22 August 2007


IQE plc


IQE wins multi-year contract as preferred Epi wafer supplier to ANADIGICS Inc.

IQE plc (AIM: IQE, 'The Group') is pleased to announce that its RF Business Unit
has been selected by ANADIGICS Inc. to be their preferred supplier of advanced
GaAs epi wafers. As part of a multi year contract, valued at approximately US
$50 million over the first two years, IQE will provide a wide range of wafer
products which will be used to manufacture leading edge wireless chips for 3G,
WiFi, WiMAX, broadband and set top box applications.

IQE plc also today published its Interim Results for the half year ended 30 June
2007 which show  revenues up 80% at constant exchange rates to £26.2m and an
EBITDA profit of £1.3m (H1/2006: EBITDA loss £0.8m).

Dr Drew Nelson, IQE Chief Executive said:

'We are extremely pleased to have been awarded this preferred supplier contract
from one of the world's leading suppliers of advanced chips to the wireless
communications industry. We have been working very closely with ANADIGICS over
the last two years, to support their rapid growth plans.

'This major contract award recognises the unique advantages that IQE can offer
as a pure play wafer supplier, including multi site, multi platform
manufacturing, a complete product range for the wireless communications
industry, significant additional wafer capacity to support the rapidly growing
demands of this and other customers, and the advanced engineering support for
current and future product development that we can provide.'

Dr. Bami Bastani, President & CEO of ANADIGICS said:

'We have chosen IQE as our preferred epi supplier on the basis of their
diligent support of our rapidly growing business over the last two years, and in
recognition of their wafer production strategy which gives us confidence that
they can fully support our aggressive growth plans over the next few years.  We
are very happy to have concluded this agreement with IQE.'



Contacts:


IQE plc :

Drew Nelson                                                 [phone]
Phil Rasmussen
Chris Meadows


College Hill:
Adrian Duffield / Ben Way                                   [phone]


Noble and Company :
John Llewellyn-Lloyd/ Sam Reynolds                        + 44 (0) 20 7763 2200






NOTE TO EDITORS


IQE

IQE is the leading global supplier of advanced semiconductor wafers with
products that cover a diverse range of applications, supported by an innovative
outsourced foundry services portfolio that allows the Group to provide a 'one
stop shop' for the wafer needs of the world's leading semiconductor
manufacturers.

IQE uses advanced crystal growth technology (epitaxy) to manufacture and supply
bespoke semiconductor wafers ('epi-wafers') to the major chip manufacturing
companies, who then use these wafers to make the chips which form the key
components of virtually all high technology systems. IQE is unique in being able
to supply wafers using all of the leading crystal growth technology platforms.

IQE's products are found in many leading-edge consumer, communication, computing
and industrial applications, including a complete range of wafer products for
the wireless industry, such as mobile handsets and wireless infrastructure,
Wi-Fi, WiMAX, base stations, GPS, and satellite communications; optical
communications, optical storage (CD, DVD), laser optical mouse, laser printers &
photocopiers, thermal imagers, leading-edge medical products, barcode, high
efficiency LEDs and a variety of advanced silicon based systems.

The manufacturers of these chips are increasingly seeking to outsource wafer
production to specialist foundries such as IQE in order to reduce overall wafer
costs and accelerate time to market.

IQE also provides bespoke R&D services to deliver customised materials for
specific applications and offers specialist technical staff to manufacture to
specification either at its own facilities or on the customer's own sites. The
Group is also able to leverage its global purchasing volumes to reduce the cost
of raw materials. In this way IQE's outsourced services, provide compelling
benefits in terms of flexibility and predictability of cost, thereby
significantly reducing operating risk.

IQE operates six manufacturing facilities located in Cardiff (two) and Milton
Keynes in the UK; in Bethlehem, Pennsylvania and Somerset, New Jersey in the
USA; and Singapore. The Group also has 11 sales offices located in major
economic centres worldwide.


ANADIGICS, Inc.

ANADIGICS, Inc. (Nasdaq: ANAD - News) is a leading provider of semiconductor
solutions in the rapidly growing broadband wireless and wireline communications
markets. The Company's products include power amplifiers, tuner integrated
circuits, active splitters, line amplifiers, and other components, which can be
sold individually or packaged as integrated radio frequency and front end
modules.


                      This information is provided by RNS
            The company news service from the London Stock Exchange                   FE