IQE completes NanoGaN Limited acquisition

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

IQE plc (AIM: IQE), the leading global supplier of advanced wafer
products and wafer services to the semiconductor industry, has
completed the acquisition of UK based NanoGaN Limited ("NanoGaN") for
an initial consideration of £0.4m which has been settled by the issue
of new shares and cash as announced by the Company on 5 October 2009.

The completion follows the admission to trading on AIM of 5,819,134
new Ordinary Shares (being the Placing Shares and the Consideration
Shares) at 8.00 a.m. today. The Ordinary Shares rank pari-passu with
the existing issued Ordinary Shares.

Further consideration of up to £3.2m will be settled on the
achievement of future milestones relating to the commercialisation of
the intellectual property. IQE has the option to settle the further
consideration in shares or cash.

Commenting, Dr Drew Nelson, IQE Chief Executive Officer said:

"This acquisition of NanoGaN represents a major milestone in our
technology roadmap, and enables the Group to accelerate its entry
into the emerging high growth and large volume markets for blue and
green semiconductor lasers as well as the key enabling materials for
low energy LED lighting."

Contacts:

IQE plc ([phone])
Drew Nelson
Phil Rasmussen
Chris Meadows

Noble & Company Limited (+ 44 20 7763 2200)
John Llewellyn-Lloyd
Sam Reynolds

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