Holding(s) in Company

IQE PLC
16 June 2005


                            IQE plc (the 'Company')

                              Holding in Company


The Company was informed on 13 June 2005 by Gartmore Investment Management plc
that, following a purchase of 2,250,000 ordinary shares of 1p each in the
Company ('Ordinary Shares') on 10 June 2005, Gartmore Investment Limited,
Gartmore Fund Managers Limited and Gartmore Global Partners had a reportable
interest in 35,499,756 Ordinary Shares representing 11.239 per cent. of the
issued share capital of the Company. The above Ordinary Shares are held as
follows:

Beneficial owner                         Number of   Percentage of    Registered
                                   Ordinary Shares   issued share     holder
                                                       capital

Gartmore Fund Managers Ltd A/C        12,863,324         4.073%      HSBC Global
Gartmore UK & Irish Smaller                                      Custody Nominee
Companies                                                               UK Ltd

The Gartmore Limited Issue UK          2,395,509         0.758%    Goldman Sachs
Small Cap Fund Ltd                                                Nominees Ltd

Strathclyde Pension Fund               6,228,587         1.972%         Nortrust
                                                                        Nominees
                                                                      Litmited

The Alphagen Volantis Fund             8,124,383         2.572%          Vidacos
Limited                                                             Nominees Ltd
                                                                      A/C 1945

Gartmore Smaller Companies Trust       3,586,042         1.135%  BNY GIL CLT A/C
plc                                                                 NOMS LTD A/C
                                                                           LST

Gartmore Growth Opportunities          2,301,911         0.729%  BNY GIL CLT A/C
plc                                                                 NOMS LTD A/C
                                                                          NWSC

                           Total      35,499,756        11.239%

16 June 2005


                      This information is provided by RNS
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