Holding(s) in Company

IQE PLC
19 September 2005


                            IQE plc (the 'Company')

                              Holding in Company


The Company was informed on 16 September 2005 by Aviva plc that, following the
purchase of 2,025,000 ordinary shares of 1p each in the Company ('Ordinary
Shares') on 14 September 2005, Morley Fund Management Limited (a subsidiary of
Aviva plc) is now interested 32,819,132 Ordinary Shares, representing
approximately 10.38 per cent. of the issued share capital of the Company. The
above Ordinary Shares are registered as follows:

Registered Holder                                Number of         Percentage of
                                           Ordinary Shares          issued share
                                                                       capital

Chase Nominees Ltd                             5,981,374                  1.89%

CUIM Nominees Ltd                              8,000,000                  2.53%

Vidacos Nominees Ltd                          18,837,758                  5.96%

Total                                          32,819,132                 10.38%


19 September 2005



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