Director/PDMR Shareholding

IQE PLC
04 September 2007





                            IQE plc ('the Company')



                              DIRECTORS' DEALINGS



IQE plc announces that 68,043 new ordinary shares have been issued to Gambit
Corporate Finance in settlement of the fees of the Non-Executive Chairman
Godfrey Ainsworth for April to June 2007. Following this issue the total number
of ordinary shares in issue is 430,830,211. The shares will be allotted and
issued as detailed below:



Shareholder name              Shares issued                  Average price



Gambit Corporate Finance        68,043                           15.11p



Following this issue, the Non-Executive Chairman of the Company Dr Godfrey
Ainsworth's total beneficial interest in the Company is 3,412,731 shares
representing 0.79% of the issued share capital. Dr Godfrey Ainsworth holds this
interest in IQE plc as an equity partner of Gambit Corporate Finance in respect
of 2,391,432 shares and as sole beneficial owner of the balance of 1,021,299
shares.



Application has been made to the London Stock Exchange for the shares to be
admitted to AIM.







Contacts



IQE plc                             [phone]
Dr Drew Nelson, President & CEO
Chris Meadows, Investor Relations



Noble & Company Limited             [phone]
John Llewellyn-Lloyd


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