Holding(s) in Company

IQE PLC
22 July 2005


                            IQE plc (the 'Company')
                                    
                                Holding in Company

The Company was informed on 21 July 2005 by Gartmore Investment Management plc
that, following the sale of 500,000 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
43,999,756 Ordinary Shares representing approximately 13.93 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        15,137,969          4.79%      HSBC Global
Gartmore UK & Irish Smaller                                      Custody Nominee
Companies                                                               UK Ltd

The Gartmore Limited Issue UK          3,669,006          1.16%    Goldman Sachs
Small Cap Fund Ltd                                                  Nominees Ltd

Strathclyde Pension Fund               7,744,279          2.45%         Nortrust 
                                                                        Nominees
                                                                        Litmited

The Alphagen Volantis Fund            10,945,822          3.47%          Vidacos
Limited                                                             Nominees Ltd
                                                                      A/C 1945

Gartmore Smaller Companies Trust       3,773,892          1.20%  BNY GIL CLT A/C
plc                                                                 NOMS LTD A/C
                                                                           LST

Gartmore Growth Opportunities          2,728,788          0.86%  BNY GIL CLT A/C
plc                                                                 NOMS LTD A/C
                                                                          NWSC
                           Total      43,999,756         13.93%



22 July 2005







                      This information is provided by RNS
            The company news service from the London Stock Exchange