Holding(s) in Company

14 September 2010

IQE plc
("IQE" or the "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)        |                                       |
| (if different from 3.):(iv)          |                                       |
+--------------------------------------+---------------------------------------+
|5. Date of the transaction and date on|                                       |
|which the threshold is crossed or     |           10 September 2010           |
|reached: (v)                          |                                       |
+--------------------------------------+---------------------------------------+
|6. Date on which issuer notified:     |           13 September 2010           |
+--------------------------------------+---------------------------------------+
|7. Threshold(s) that is/are crossed or|               Below 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      |% of  voting   |
|using       |of        |of         |of shares    |voting         |rights (x)     |
|the ISIN    |Shares    |Voting     |             |rights         |               |
|CODE        |          |R ghts     +-------------+------+--------+------+--------+
|            |          |           |Direct       |Direct|Indirect|Direct|Indirect|
|            |          |           |             |(xi)  |(xii)   |      |        |
+------------+----------+-----------+-------------+------+--------+------+--------+
|GB0009619924|          |           |  Below 5%   |Below |        |Below |        |
|            |24,050,000|24,050,000 |             |  5%  |        |  5%  |        |
+------------+----------+-----------+-------------+------+--------+------+--------+
|            |          |           |             |      |        |      |        |
+------------+----------+-----------+-------------+------+--------+------+--------+

+---------------------------------------------------------------------------------+
|B: Qualifying Financial Instruments                                              |
+---------------------------------------------------------------------------------+
|Resulting situation after the triggering transaction                             |
+--------------+----------+------------------------+---------------+--------------+
|Type of       |Expiration|Exercise/               |Number of      |% of voting   |
|financial     |date(xiii)|Conversion Period(xiv)  |voting         |rights        |
|instrument    |          |                        |rights that may|              |
|              |          |                        |be             |              |
|              |          |                        |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                 |
+------------------------------------+--------------------------------------------+
|Below 5%                            |Below 5%                                    |
+------------+++--------+-+--------+++-----------+++-----+--+-----++-----++-------+
                                                                           

[HUG#1444296]








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