Holding(s) in Company

02 July 2010

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

                             Holding(s) in Company



+------------------------------------------------------------------------------------+
|TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARES(i)                                   |
+-----------------------------------------------+------------------------------------+
                                                |
+-----------------------------------------------+------------------------------------+
|1. Identity of the issuer or the underlying    |                                    |
|issuer                                         |              IQE PLC               |
|of existing shares to which voting rights are  |                                    |
|attached:(ii)                                  |                                    |
+-----------------------------------------------+------------------------------------+
|2 Reason for the notification (please tick the appropriate box or boxes):           |
+----------------------------------------------------------------------------+-------+
|An acquisition or disposal of voting rights                                 |   X   |
+----------------------------------------------------------------------------+-------+
|An acquisition or disposal of qualifying financial instruments which may    |       |
|result in the acquisition of shares already issued to which voting rights   |       |
|are attached                                                                |       |
+----------------------------------------------------------------------------+-------+
|An acquisition or disposal of instruments with similar economic effect to   |       |
|qualifying financial instruments                                            |       |
+----------------------------------------------------------------------------+-------+
|An event changing the breakdown of voting rights                            |       |
+--------------+-------------------------------------------------------------+-------+
|Other (please |                                                             |       |
|specify):     |                                                             |       |
+--------------+--------------------+----------------------------------------+-------+
|3. Full name of person(s) subject  |                                                |
|to the                             |       Prudential plc group of companies        |
|notification obligation:(iii)      |                                                |
+-----------------------------------+------------------------------------------------+
|4. Full name of shareholder(s)     |             See attached schedule              |
| (if different from 3.):(iv)       |                                                |
+-----------------------------------+------------------------------------------------+
|5. Date of the transaction and date|                                                |
|on                                 |                  30 June 2010                  |
|which the threshold is crossed or  |                                                |
|reached:(v)                        |                                                |
+-----------------------------------+------------------------------------------------+
|6. Date on which issuer notified:  |                  01 July 2010                  |
+-----------------------------------+------------------------------------------------+
|7. Threshold(s) that is/are crossed|                                                |
|or                                 |                       5%                       |
|reached:(vi, vii)                  |                                                |
+-----------------------------------+------------------------------------------------+
|                                                                                    |
|8. Notified details:                                                                |
+------------------------------------------------------------------------------------+
|A: Voting rights attached to shares (viii, ix)                                      |
+------------+---------------------+-------------------------------------------------+
|Class/type  |Situation previous   |Resulting situation after the triggering         |
|of          |to the triggering    |transaction                                      |
|shares      |transaction          |                                                 |
|            +---------+-----------+-------------+-------------------+---------------+
|if possible |Number   |Number     |Number       |Number of voting   |% of  voting   |
|using       |of       |of         |of shares    |rights             |rights (x)     |
|the ISIN    |   res   |Vot ng     +-------------+----------+--------+------+--------+
|CODE        |         |Rights     |Direct       |Direct    |Indirect|Direct|Indirect|
|            |         |           |             |(xi)      |(xii)   |      |        |
+------------+---------+-----------+-------------+----------+--------+------+--------+
|GB0009619924|         |           | 22,900,000  |22,900,000|   0    |5.14% |   0    |
|            |Below 5% |Below 5%   |             |          |        |      |        |
+------------+---------+-----------+-------------+----------+--------+------+--------+
|            |         |           |             |          |        |      |        |
+------------+---------+-----------+-------------+----------+--------+------+--------+

+------------------------------------------------------------------------------------+
|B: Qualifying Financial Instruments                                                 |
+------------------------------------------------------------------------------------+
|Resulting situation after the triggering transaction                                |
+---------------+----------+----------------------+-------------------+--------------+
|Type of        |Expiration|Exercise/             |Number of voting   |% of voting   |
|financial      |date(xiii)|Conversion Period(xiv)|rights that may be |rights        |
|instrument     |          |                      |acquired if the    |              |
|               |          |                      |instrument is      |              |
|               |          |                      |exercised/         |              |
|               |          |                      |converted.         |              |
+---------------+----------+----------------------+-------------------+--------------+
|               |          |                      |                   |              |
+---------------+----------+----------------------+-------------------+--------------+

+------------------------------------------------------------------------------------+
|C: Financial Instruments with similar economic effect to Qualifying Financial       |
|Instruments (xv, xvi)                                                               |
+------------------------------------------------------------------------------------+
|Resulting situation after the triggering transaction                                |
+-------------+--------+----------+-------------+------------+-----------------------+
|Type of      |Exercise|Expiration|Exercise/    |Number of   |% of voting rights     |
|financial    |price   |date      |Conversion   |voting      |(xix, xx)              |
|instrument   |        |(xvii)    |period(xviii)|rights      |                       |
|             |        |          |             |instrument  |                       |
|             |        |          |             |refers to   |                       |
|             |        |          |             |            |                       |
+-------------+--------+----------+-------------+------------+----------------+------+
|             |        |          |             |            |Nominal         |Delta |
|             |        |          |             |            +----------------+------+
|             |        |          |             |            |                |      |
+-------------+--------+----------+-------------+------------+----------------+------+

+------------------------------------------------------------------------------------+
|Total (A+B+C)                                                                       |
+------------------------------------+-----------------------------------------------+
|Number of voting rights             |Percentage of voting rights                    |
+------------------------------------+-----------------------------------------------+
|22,900,000                          |5.14%                                          |
+------------++++------+---+------++++----------+++---------++-------++-----+++------+




+----------------------------------------------------------------------------+
|9. Chain of controlled undertakings through which the voting rights and/or  |
|the                                                                         |
|financial instruments are effectively held, if applicable:(xxi)             |
+----------------------------------------------------------------------------+
|Prudential plc (parent Company)                                             |
|M&G Group Limited (wholly owned subsidiary of Prudential plc)               |
|M&G Limited (wholly owned subsidiary of M&G Group Limited)                  |
|M&G Investment Management Limited (wholly owned subsidiary of M&G Limited)  |
|                                                                            |
|                                                                            |
+----------------------------------------------------------------------------+

+----------------------------------------------------------------------------+
|Proxy Voting:                                                               |
+---------------------------------------------------+------------------------+
|10. Name of the proxy holder:                      |          N/A           |
+---------------------------------------------------+------------------------+
|11. Number of voting rights proxy holder will cease|          N/A           |
|to hold:                                           |                        |
+---------------------------------------------------+------------------------+
|12. Date on which proxy holder will cease to hold  |          N/A           |
|voting rights:                                     |                        |
+---------------------------------------------------+------------------------+



[HUG#1429124]








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