Holding(s) in Company

07 October 2010

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

Holding(s) in Company


TR-1[i]:               notification of major interests in shares


+--------------------------------------+---------------------------------------+
|1. Identity of the issuer or the      |                IQE PLC                |
|underlying issuer of existing shares  |                                       |
|to which voting rights are            |                                       |
|attached[ii]:                         |                                       |
+--------------------------------------+------------------------------------+--+
|2. Reason for the notification     (please tick the appropriate box or     |  |
|boxes)                                                                     |  |
+---------------------------------------------------------------------------+--+
|An acquisition or disposal of voting rights                                |  |
+---------------------------------------------------------------------------+--+
|An acquisition or disposal of financial instruments which may result in the|  |
|acquisition of shares already issued to which voting rights are attached   |  |
+---------------------------------------------------------------------------+--+
|An event changing the breakdown of voting rights                           |  |
+---------------------------------------------------------------------------+--+
|Other (please specify):Placing_____________________________________        |X |
+--------------------------------------+------------------------------------+--+
|3. Full name of person(s) subject to  |     Herald Investment Management      |
|the notification obligation[iii]:     |              Limited                  |
+--------------------------------------+---------------------------------------+
|4. Full name of shareholder(s) (if    |                                       |
|different from 3.)[iv]:               |                                       |
+--------------------------------------+---------------------------------------+
|5. Date of the transaction (and date  |         5th October  2010             |
|on which the threshold is crossed or  |                                       |
|reached if different)[v]:             |                                       |
+--------------------------------------+---------------------------------------+
|6. Date on which issuer notified:     |         7th October  2010             |
+--------------------------------------+---------------------------------------+
|7. Threshold(s) that is/are crossed or|            5%                         |
|reached:                              |                                       |
+--------------------------------------+-------------------------------------+-+
|8. Notified details:                  |                                     |
+--------------------------------------+------------------------------------++--



+-------------------------------------------------------------------------------------+
|A: Voting rights attached to shares                                                  |
+-------------+-----------------------+-----------------------------------------------+
|Class/type of|Situation previous to  |Resulting situation after the triggering       |
|shares ()    |the Triggering         |transaction[vii]                               |
|             |transaction [vi]       |                                               |
| if possible +-----------+-----------+-----------+-------------------+---------------+
|using the    |Number of  |Number of  |Number of  |Number of voting   |% of voting    |
|ISIN CODE    |Shares ()  |Voting     |shares     |rights (ix)        |rights         |
|             |           |Rights     +-----------+-------+-----------+------+--------+
|             |           |(viii)     |Indirect   |Direct |Indirect   |Direct|Indirect|
|             |           |           |           |(x)    |(xi)       |      |        |
+-------------+-----------+-----------+-----------+-------+-----------+------+--------+
|             |           |           |           |       |           |      |        |
|             |           |           |           |       |           |      |        |
| GB0009619924|22,544,190 | 22,544,190| 24,544,190|       | 24,544,190|      | 4.8%   |
|             |(5.06%)    |           |(4.80%)    |       |           |      |        |
+-------------+-----------+-----------+-----------+-------+-----------+------+--------+


+------------------------------------------------------------------------------+
|B: Financial Instruments                                                      |
+------------------------------------------------------------------------------+
|Resulting situation after the triggering transaction (xii)                    |
+----------------+----------------+----------------+---------------+-----------+
|Type of         |Expiration date |Exercise/       |Number of      |% of voting|
|financial       |(xiii)          |Conversion      |voting rights  |rights     |
|instrument      |                |Period/ Date    |that may be    |           |
|                |                |(xiv )()        |acquired if the|           |
|                |                |                |instrument is  |           |
|                |                |                |exercised/     |           |
|                |                |                |converted.     |           |
+----------------+----------------+----------------+---------------+-----------+
|                |                |                |               |           |
|                |                |                |               |           |
|    None        |                |                |               |Nil        |
+----------------+----------------+----------------+---------------+-----------+


+----------------------------------------------+
| Total (A+B)                                  |
+-------------------------+--------------------+
| Number of voting rights | % of voting rights |
+-------------------------+--------------------+
|                         |                    |
|                         |                    |
| 24,544,190              | 4.8%               |
+-------------------------+--------------------+







+------------------------------------------------------------------------------+
|9. Chain of controlled undertakings through which the voting rights and/or the|
|financial instruments are effectively held, if applicable (xv):               |
+------------------------------------------------------------------------------+
|                                                                              |
|                                                                              |
+------------------------------------------------------------------------------+




+-----------------------------------------------------------------------------+
| Proxy Voting:                                                               |
+------------------------------------------------------------------+----------+
| 10. Name of the proxy holder:                                    |      N/A |
+------------------------------------------------------------------+----------+
| 11. Number of voting rights proxy holder will cease to hold:     |      N/A |
+------------------------------------------------------------------+----------+
| 12. Date on which proxy holder will cease to hold voting rights: |      N/A |
+------------------------------------------------------------------+----------+




+-------------------------------+--------------------+
| 13. Additional information:   |                    |
+-------------------------------+--------------------+
| 14. Contact name:             |      Andrew Miller |
+-------------------------------+--------------------+
| 15. Contact telephone number: |      020 7553 6308 |
+-------------------------------+--------------------+





[HUG#1450244]








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Source: IQE plc via Thomson Reuters ONE