Holding(s) in Company

IQE plc
("IQE" or the "Company")

21 October 2009




+-------------------------------------------------------------------+
| TR-1: Notifications of Major Interests in Shares                  |
|-------------------------------------------------------------------|
|                                                  | IQE PLC        |
| 1. Identity of the issuer or the underlying      |                |
| issuer of existing shares to which voting rights |                |
| are attached:                                    |                |
|-------------------------------------------------------------------|
|                                                                   |
| 2. Reason for notification (yes/no)                               |
|-------------------------------------------------------------------|
|                                                            | Yes  |
| An acquisition or disposal of voting rights                |      |
|------------------------------------------------------------+------|
|                                                            | No   |
| An acquisition or disposal of financial instruments which  |      |
| may result in the acquisition of shares already issued to  |      |
| which voting rights are attached                           |      |
|------------------------------------------------------------+------|
|                                                            | No   |
| An event changing the breakdown of voting rights           |      |
|------------------------------------------------------------+------|
|                                                            | N/A  |
| Other (please specify):______________                      |      |
|-------------------------------------------------------------------|
|                                       | River and Mercantile      |
| 3. Full name of person(s) subject to  | Asset Management LLP      |
| notification obligation:              |                           |
|---------------------------------------+---------------------------|
|                                       |                           |
| 4. Full name of shareholder(s) (if    |                           |
| different from 3):                    |                           |
|---------------------------------------+---------------------------|
|                                       | 20th October 2009         |
| 5. Date of transaction (and date on   |                           |
| which the threshold is crossed or     |                           |
| reached if different):                |                           |
|---------------------------------------+---------------------------|
|                                       | 21st October 2009         |
| 6. Date on which issuer notified:     |                           |
|---------------------------------------+---------------------------|
|                                       | 5%                        |
| 7. Threshold(s) that is/are crossed   |                           |
| or reached:                           |                           |
+-------------------------------------------------------------------+




+---------------------------------------------------------------------------------------------------+
|8: Notified Details                                                                                |
|---------------------------------------------------------------------------------------------------|
|A: Voting rights attached to shares                                                                |
|                                                                                                   |
|---------------------------------------------------------------------------------------------------|
|Class/type of|Situation previous to the       |Resulting situation after the triggering transaction|
|shares       |triggering transaction          |                                                    |
|If possible  |--------------------------------+----------------------------------------------------|
|use ISIN code|Number of   |Number of voting   |Number of   |Number of voting rights|Percentage of  |
|             |shares      |rights             |shares      |                       |voting rights  |
|             |            |22,016,200         |            |-----------------------+---------------|
|             |22,016,200  |                   | 20,516,200 |Direct       |Indirect |Direct|Indirect|
|GB0009619924 |            |                   |            | 20,516,200  |         |4.64% |        |
|             |            |                   |            |             |         |      |        |
|             |            |                   |            |             |         |      |        |
|---------------------------------------------------------------------------------------------------|
|                                                                                                   |
|                                                                                                   |
+---------------------------------------------------------------------------------------------------+



+---------------------------------------------------------------------------+
|B: Financial Instruments                                                   |
|                                                                           |
|---------------------------------------------------------------------------|
|Resulting situation after the triggering transaction                       |
|                                                                           |
|---------------------------------------------------------------------------|
|Type of   |Expiration|Exercise/  |No. of voting rights that may |Percentage|
|financial |date      |conversion |be acquired (if the instrument|of voting |
|instrument|          |period/date|exercised/converted)          |rights    |
|----------+----------+-----------+------------------------------+----------|
|          |          |           |                              |          |
|          |          |           |                              |          |
+---------------------------------------------------------------------------+




+-------------------------------------------------------+
| Total (A+B)                                           |
|                                                       |
|-------------------------------------------------------|
| Number of voting rights | Percentage of voting rights |
|-------------------------+-----------------------------|
|  20,516,200             | 4.64%                       |
|                         |                             |
|                         |                             |
+-------------------------------------------------------+





+-------------------------------------------------------------------+
| 9. Chain of controlled undertakings through which the voting      |
| rights and /or the financial instruments are effectively held, if |
| applicable:                                                       |
|-------------------------------------------------------------------|
|                                                                   |
+-------------------------------------------------------------------+



+-------------------------------------------------------------------+
| Proxy Voting:                                                     |
|                                                                   |
|-------------------------------------------------------------------|
| 10. Name of proxy holder:            | River and Mercantile Asset |
|                                      | Management LLP             |
|--------------------------------------+----------------------------|
| 11. Number of voting rights proxy    | N/A                        |
| holder will cease to hold:           |                            |
|                                      |                            |
|--------------------------------------+----------------------------|
| 12. Date on which proxy holder will  | N/A                        |
| cease to hold voting rights:         |                            |
|                                      |                            |
+-------------------------------------------------------------------+

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