Holding(s) in Company

07 September 2010

IQE plc
("IQE" or the "Company")


+---------------------------------------+--------------------------------------+
|1. Identity of the issuer or the       |               IQE PLC                |
|underlying issuer 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                                |  |
+---------------------------------------------------------------------------+--+
|An acquisition or disposal of financial instruments which may result in the|  |
|acquisition of shares already issued to which voting rights are attached   |  |
+---------------------------------------------------------------------------+--+
|An event changing the breakdown of voting rights                           |  |
+---------------------------------------------------------------------------+--+
|Other (please specify):___________________________________________         |  |
+---------------------------------------+-----------------------------------+--+
|3. Full name of person(s) subject to   |Herald Investment Management Limited  |
|the notification obligation[iii]:      |                                      |
+---------------------------------------+--------------------------------------+
|4. Full name of shareholder(s) (if     |                                      |
|different from 3.)[iv]:                |                                      |
+---------------------------------------+--------------------------------------+
|5. Date of the transaction (and date on|         1 September  2010            |
|which the threshold is crossed or      |                                      |
|reached if different)[v]:              |                                      |
+---------------------------------------+--------------------------------------+
|6. Date on which issuer notified:      |         6 September  2010            |
+---------------------------------------+--------------------------------------+
|7. Threshold(s) that is/are crossed or |            5%                        |
|reached:                               |                                      |
+---------------------------------------+------------------------------------+-+
|8. Notified details:                   |                                    |
+---------------------------------------+-----------------------------------++--






+-------------------------------------------------------------------------------------+
|A: Voting rights attached to shares                                                  |
+-------------+-----------------------+-----------------------------------------------+
|Class/type of|Situation previous to  |Resulting situation after the triggering       |
|shares ()    |the Triggering         |transaction[vii]                               |
| if possible |transaction [vi]       |                                               |
|using the    +-----------+-----------+-----------+-------------------+---------------+
|ISIN CODE    |Number of  |Number of  |Number of  |Number of voting   |% of voting    |
|             |Shares ()  |Voting     |shares     |rights (ix)        |rights         |
|             |           |Rights     +-----------+-------+-----------+------+--------+
|             |           |(viii)     |Indirect   |Direct |Indirect   |Direct|Indirect|
|             |           |           |           |(x)    |(xi)       |      |        |
+-------------+-----------+-----------+-----------+-------+-----------+------+--------+
|             |           |           |           |       |           |      |        |
| GB0009619924|21,394,190 | 21,394,190| 22,394,190|       | 22,394,190|      | 5.03%  |
|             |(4.81%)    |           |(5.03%)    |       |           |      |        |
+-------------+-----------+-----------+-----------+-------+-----------+------+--------+

+------------------------------------------------------------------------------+
|B: Financial Instruments                                                      |
+------------------------------------------------------------------------------+
|Resulting situation after the triggering transaction (xii)                    |
+----------------+----------------+----------------+---------------+-----------+
|Type of         |Expiration date |Exercise/       |Number of      |% of voting|
|financial       |(xiii)          |Conversion      |voting rights  |rights     |
|instrument      |                |Period/ Date    |that may be    |           |
|                |                |(xiv )          |acquired if the|           |
|                |                |                |instrument is  |           |
|                |                |                |exercised/     |           |
|                |                |                |converted.     |           |
+----------------+----------------+----------------+---------------+-----------+
|                |                |                |               |           |
|     None       |                |                |               |Nil        |
+----------------+----------------+----------------+---------------+-----------+

+----------------------------------------------+
| Total (A+B)                                  |
+-------------------------+--------------------+
| Number of voting rights | % of voting rights |
+-------------------------+--------------------+
|                         |                    |
| 22,394,190              | 5.03%              |
+-------------------------+--------------------+



+------------------------------------------------------------------------------+
|9. Chain of controlled undertakings through which the voting rights and/or the|
|financial instruments are effectively held, if applicable (xv):               |
+------------------------------------------------------------------------------+
|                                                                              |
|Herald Investment Management Limited, a discretionary investment manager, is  |
|the parent undertaking of an investment management business.                  |
|                                                                              |
+------------------------------------------------------------------------------+


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




[HUG#1442869]








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Source: IQE plc via Thomson Reuters ONE