Holding(s) in Company

IQE PLC
05 May 2004



                              IQE plc ('Company')
                               Holding in Company

The Company was yesterday informed by Scottish Widows Investment Partnership Ltd
on behalf of Lloyds TSB Group plc and its subsidiary companies, that they are
interested in 24,670,662 ordinary shares of 1 pence each in the Company
('Ordinary Shares'), which represents 7.82 per cent. of the Company's issued
share capital. Of this interest, 10,018,562 Ordinary Shares are material
interests, which represents 3.18 per cent of the Company's current issued share
capital. The registered holder of the material interests is State Street
Nominees Ltd.

5 May 2004



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