Director/PDMR Shareholding

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

14 January 2009

IQE plc announces that 293,373 new ordinary shares have been issued
in settlement of Non-Executive Directors' fees for the period of
October to December 2008.

195,498 of the new ordinary shares have been issued to Non-Executive
Chairman Dr Godfrey Ainsworth at a price of 8.94p in settlement of
NED fees (excluding VAT) which were invoiced by Gambit Corporate
Finance of which Dr Ainsworth is Managing Partner. 146,624 of these
shares have been transferred to a nominee account to the order of his
partners. Dr Ainsworth has a beneficial interest in the remaining
48,874 shares. Following this issue, Dr Ainsworth's total beneficial
interest in the Company is 2,813,919 shares representing 0.65% of the
issued share capital.

97,875 of the new ordinary shares have been issued to Fishstone
Limited in respect of Non-Executive Director Simon Gibson's NED fees.
The new shares have been issued at a price of 8.94p. Following this
issue Simon Gibson's total beneficial interest in the Company is
155,441 shares representing 0.04% of the issued share capital.

Application has been made to the London Stock Exchange for the shares
to be admitted to AIM.  Admission to trading on AIM of these Ordinary
Shares is expected to occur on Tuesday 20 January 2009.

Following this issue the total number of Ordinary Shares in issue
will be 433,550,611.


Contacts:

IQE plc ([phone])
Chris Meadows
Phil Rasmussen

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

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