Director Shareholding

IQE PLC
20 September 2002




                            IQE PLC ('the Company')

                             Director Shareholding


The Company was today informed that 16,268 ordinary shares of 1p each in the
Company ('Ordinary Shares'), representing 0.009 per cent. of the issued share
capital of the Company, were purchased on 18 September 2002 at 9.75p per
Ordinary Share. These shares were purchased by Gambit Corporate Finance Limited,
a company of which G.H.H. Ainsworth, a director of the Company, is both a
shareholder and a director. Following this transaction, G.H.H. Ainsworth has a
beneficial interest in 290,872 Ordinary Shares, which represents approximately
0.16 per cent. of the Company's issued ordinary share capital.



20 September 2002


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