EGM Statement

IQE PLC
15 August 2006


IQE PLC

15 August 2006

                                    IQE plc

                           (the ''Company'' or 'IQE')

                                 EGM STATEMENT


The board of IQE is pleased to announce that all of the resolutions proposed and
set out in the notice dated 20 July 2006 that were put to shareholders at the
Extraordinary General Meeting held today were passed and accordingly:

1. the Directors have been granted authority under section 80 of the
   Companies Act 1985 (the ''Act'') to allot up to 87,500,000 new ordinary 
   shares with an aggregate nominal value of £875,000 in connection with the 
   placing (the 'Placing'), representing approximately 27.6% of the total shares 
   in issue as at 14 August 2006 and have been empowered pursuant to Section 95 
   of the Act to allot such shares as if Section 89(1) of the Act did not apply 
   (such authority to expire on the earliest of the date of the next Annual 
   General Meeting and 16 February 2008);

2. subject to and conditional upon completion of the Placing, the
   authorised share capital of the Company shall be increased to £6,500,000;

3. subject to and conditional upon completion of the Placing, the
   Directors shall be generally and unconditionally authorised pursuant to 
   section 80 of the Act to exercise all the powers of the Company to allot, 
   grant options over or otherwise deal with or dispose of any relevant 
   securities within the meaning of that section up to an aggregate number of 
   3,447,608 ordinary shares in addition to the authority conferred on the 
   Directors pursuant to the resolutions passed at the Annual General Meeting 
   of the Company held on 31 May 2006. This authority shall expire at the 
   conclusion of the next Annual General Meeting; and

4. subject to and conditional upon completion of the Placing, the
   Directors shall be generally empowered pursuant to Section 95 of the Act, to
   allot equity securities (within the meaning of Section 94(2) of the Act)
   pursuant to the authority conferred by resolution 3 above as if Section 89(1) 
   of the Act did not apply to the allotment up to an aggregate number of 
   29,013,220 ordinary shares (where such allotment is for cash) unless such 
   securities have been offered to the holders of ordinary shares in the capital 
   of the Company in proportion (as nearly as may be) to their existing holdings  
   of shares in which case the limit shall be that number of shares equal to the 
   authority conferred by resolution 3 above. This authority is in addition to 
   the authority conferred on the Directors pursuant to the resolutions passed 
   at the Annual General Meeting of the Company held on 31 May 2006 and shall 
   expire at the conclusion of the next Annual General Meeting.


Contacts

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

Noble & Company Limited                 [phone]
John Llewellyn-Lloyd
Graeme Bayley

Buchanan Communications                 [phone]
Nicola Cronk
Ben Romney



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