Additional Listing

IQE PLC
14 January 2002

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN THE USA, CANADA, AUSTRALIA OR
JAPAN

14 January 2002


                           IQE PLC (the 'Company')

                              ADDITIONAL LISTING

As outlined in the Prospectus dated 14 November 2001 relating to the Company's
placing and open offer, the Company granted to Beeson Gregory Limited ('Beeson
Gregory') as its Sponsor, Financial Adviser and Broker an option, to acquire
up to 1,972,837 new ordinary shares of 1p each in the Company ('New Ordinary
Shares') at 155p per share (the 'Over Allotment Option').  The Company
announces that on 11 January 2002 Beeson Gregory exercised the Over Allotment
Option in respect of 1,972,837 New Ordinary Shares, which are expected to be
delivered to Beeson Gregory by 17 January 2002.  Application will be made for
the New Ordinary Shares to be admitted to the Official List of the UK Listing
Authority and to trading on the London Stock Exchange and Nasdaq Europe.
Admission is expected to become effective on 18 January 2002.

Beeson Gregory Limited, which is regulated by the Financial Services
Authority, has approved publication of this document for the purposes of
section 21 of the Financial Services and Markets Act 2000.

Further Information

Dr Drew Nelson, IQE                                     02920 839 400

Jonathan Freeman, Beeson Gregory                        020 7488 4040