Director/PDMR Shareholding

IQE plc

("IQE" or the "Company")


Directors' Dealings

6 April 2011

IQE  was informed  today of  the following  deals by  Directors in  the ordinary
shares of 1 pence each in the Company ("Ordinary Shares").

Exercise of options and disposal of Ordinary Shares by Directors on 5 April 2011

The  following Directors of the Company exercised options on 5 April 2011 over a
total  of  6,241,500 Ordinary  Shares  and  subsequently  disposed of a total of
5,086,500 Ordinary  Shares. The disposals  were carried out  principally to meet
tax  liabilities arising  from the  exercise of  the options, for individual tax
planning purposes and to satisfy exercise price requirements.

                      Share                    Disposal of    Disposal price per
                    options   Exercise            Ordinary        Ordinary Share
                  exercised      price              Shares

                        No.      Pence                 No.                 Pence



Dr G H H                Nil        Nil              50,000               47.25
Ainsworth



Dr A W Nelson (1) 1,662,500        Nil           1,362,500                 47.25

                                                   160,000                   nil
                 -----------            ----------------------------------------
                  1,662,500                      1,522,500



                                Nil to
                                 15.24

Mr P Rasmussen    2,550,000   VWA 8.96           2,085,000                 47.25
                 -----------            ----------------------------------------
                  2,550,000                      2,085,000




Dr  H R Williams                Nil to
                  2,029,000      10.17           1,429,000                 47.25
                              VWA 4.09
                 -----------            ----------------------------------------
                  2,029,000                      1,429,000




VWA = Volume weighted average exercise price

(1)     Dr A W Nelson sold 1,362,500 Ordinary Shares at 47.25 pence per Ordinary
Share and gifted 160,000 Ordinary Shares for nil consideration to family members
on  5 April 2011, of  which 86,000 were  to a  connected person who subsequently
sold the shares at 47.25 pence per Ordinary Share on 5 April 2011.

The  options were granted under the  Company's employee share option scheme. The
exercise  of options is to be satisfied through the issue of new Ordinary Shares
under  the  block  admission  arrangements  announced  on  5 April 2011. The new
Ordinary Shares are expected to be admitted to trading on AIM on 8 April 2011.

Disposal of Ordinary Shares on 6 April 2011
On 6 April 2011, Mr P Rasmussen disposed of a further 30,000 Ordinary Shares at
a price of 47.5 pence per Ordinary Share, Dr G Ainsworth disposed of a further
63,957 Ordinary Shares at a price of 47.5 pence per Ordinary Share and Dr A
Nelson disposed of a further 50,000 Ordinary Shares at a price of 46.75 pence
per Ordinary Share, all for tax planning purposes.

Following  the  above  transactions  the  beneficial  interests  of the relevant
Directors' in the Company are as follows:

+--------------+----------------+----------------+-------------+---------------+
|              |      Beneficial|      Beneficial|             |               |
|              |     interest in|     interest in|             |               |
|              | Ordinary Shares| Ordinary Shares|  % of issued|               |
|              |          before|           after|     Ordinary|   Options over|
|              |     transaction|     transaction|       Shares|Ordinary Shares|
+--------------+----------------+----------------+-------------+---------------+
|              |             No.|             No.|            %|            No.|
+--------------+----------------+----------------+-------------+---------------+
|Dr  G H H     |       3,234,956|       3,120,999|       0.597%|            Nil|
|Ainsworth     |                |                |             |               |
+--------------+----------------+----------------+-------------+---------------+
|Dr A W Nelson |      27,391,303|      27,481,303|       5.261%|     12,845,124|
|(1)           |                |                |             |               |
+--------------+----------------+----------------+-------------+---------------+
|Mr P Rasmussen|          60,000|         495,000|       0.094%|      2,586,393|
+--------------+----------------+----------------+-------------+---------------+
|Dr H R        |          77,000|         677,000|       0.129%|      5,386,433|
|Williams      |                |                |             |               |
+--------------+----------------+----------------+-------------+---------------+


Total voting rights

Following the issue of the 6,241,500 new Ordinary Shares, the total number of
Ordinary Shares in issue is 522,314,101. There are no Ordinary Shares held in
treasury and so the total number of voting rights in the Company is therefore
522,314,101.


Contacts:

IQE plc                                        [phone]
Drew Nelson
Phil Rasmussen
Chris Meadows

College Hill                                        [phone]
Adrian Duffield/Kay Larsen

Espirito Santo Investment Bank             [phone]
Richard Crawley/James Bromhead


Note to Editors

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, ultra
high  brightness  LEDs,  a  variety  of  advanced silicon based systems and high
efficiency concentrator photovoltaic (CPV) solar cells.

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 a number of global manufacturing and R&D facilities: Cardiff,
Milton Keynes and Bath in the United Kingdom; Bethlehem, Pennsylvania, Somerset,
New Jersey and Spokane, Washington in the USA; and Singapore. The Group also has
11 sales offices located in major economic centres worldwide.






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Source: IQE plc via Thomson Reuters ONE

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