Holding(s) in Company

17 June 2010

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

                             Holding(s) in Company



+------------------------------------------------------------------------------+
|TR-1: Notifications of Major Interests in Shares                              |
+----------------------------------------------+-------------------------------+
|1. Identity of the issuer or the underlying   |IQE PLC                        |
|issuer of existing shares to which voting     |                               |
|rights are attached:                          |                               |
+----------------------------------------------+-------------------------------+
|                                                                              |
|2. Reason for notification (yes/no)                                           |
+--------------------------------------------------------------------------+---+
|An acquisition or disposal of voting rights                               |Yes|
|                                                                          |   |
+--------------------------------------------------------------------------+---+
|An acquisition or disposal of financial instruments which may result in   |No |
|the acquisition of shares already issued to which voting rights are       |   |
|attached                                                                  |   |
+--------------------------------------------------------------------------+---+
|An acquisition or disposal of instruments will similar economic effect to |No |
|qualifying financial instruments                                          |   |
+--------------------------------------------------------------------------+---+
|                                                                          |No |
|An event changing the breakdown of voting rights                          |   |
+--------------------------------------------------------------------------+---+
|                                                                          |No |
|Other (please specify):______________                                     |   |
+----------------------------------+---------------------------------------+---+
|                                  |FIL Limited                                |
|3. Full name of person(s) subject |                                           |
|to notification obligation:       |                                           |
+----------------------------------+-------------------------------------------+
|                                  |                                           |
|4. Full name of shareholder(s) (if|                                           |
|different from 3):                |                                           |
+----------------------------------+-------------------------------------------+
|                                  |14 June 2010                               |
|5. Date of transaction (and date  |                                           |
|on which the threshold is crossed |                                           |
|or reached if different):         |                                           |
+----------------------------------+-------------------------------------------+
|                                  |15 June 2010                               |
|6. Date on which issuer notified: |                                           |
+----------------------------------+-------------------------------------------+
|                                  |                                           |
|7. Threshold(s) that is/are       |5%                                         |
|crossed or reached:               |                                           |
+----------------------------------+-----------+---------------------------+---+





+---------------------------------------------------------------------------------+
|8: Notified Details                                                              |
+---------------------------------------------------------------------------------+
|A: Voting rights attached to shares                                              |
|                                                                                 |
+------------+---------------------+----------------------------------------------+
|Class/type  |Situation previous to|Resulting situation after the triggering      |
|of shares   |the triggering       |transaction                                   |
|If possible |transaction          |                                              |
|use ISIN    +----------+----------+-----------+------------------+---------------+
|code        |Number of |Number of |Number of  |Number of voting  |Percentage of  |
|            |shares    |voting    |shares     |rights            |voting rights  |
|            |          |rights    |           +------+-----------+------+--------+
|            |          |          |           |Direct|Indirect   |Direct|Indirect|
|            |22,691,251|22,691,251| 22,191,251|      |           |      |        |
|GB0009619924|          |          |           |      | 22,191,251|      |4.98%   |
+------------+----------+----------+-----------+------+-----------+------+--------+


+------------------------------------------------------------------------------+
|B: Financial Instruments                                                      |
|                                                                              |
+------------------------------------------------------------------------------+
|Resulting situation after the triggering transaction                          |
|                                                                              |
+-------------+-------------+--------------+----------------------+------------+
|Type of      |Expiration   |Exercise/     |No. of voting rights  |Percentage  |
|financial    |date         |conversion    |that may be acquired  |of voting   |
|instrument   |             |period/date   |(if the instrument    |rights      |
|             |             |              |exercised/converted)  |            |
+-------------+-------------+--------------+----------------------+------------+
|             |             |              |                      |            |
|             |             |              |                      |            |
+-------------+-------------+--------------+----------------------+------------+
--------------------------------------------------------------------------------

+------------------------------------------------------------------------------+
|C: Financial Instruments with similar economic effect to Qualifying Financial |
|Instruments xv, xvi                                                           |
+------------------------------------------------------------------------------+
|Resulting situation after the triggering transaction                          |
+------------+----------+------------+--------------+-----------+--------------+
|Type of     |Exercise  |Expiration  |Exercise/     |Number of  |% of voting   |
|financial   |price     |date (xvii) |Conversion    |voting     |rights (xix,  |
|instrument  |          |            |period(xviii) |rights     |xx)           |
|            |          |            |              |instrument |              |
|            |          |            |              |refers to  |              |
+------------+----------+------------+--------------+-----------+-------+------+
|            |          |            |              |           |Nominal|Delta |
|            |          |            |              |           +-------+------+
|            |          |            |              |           |       |      |
+------------+----------+------------+--------------+-----------+-------+------+


+-------------------------------------------------------+
| Total (A+B+C)                                         |
|                                                       |
+-------------------------+-----------------------------+
| Number of voting rights | Percentage of voting rights |
+-------------------------+-----------------------------+
| 22,191,251              | 4.98%                       |
+-------------------------+-----------------------------+




+------------------------------------------------------------------------------+
|9. Chain of controlled undertakings through which the voting rights and /or   |
|the financial instruments are effectively held, if applicable:                |
+--------------------------------+-----------+-----------------------------+---+
|                                |Shares Held|Nominee                      |Co |
+--------------------------------+-----------+-----------------------------+---+
|FIL Limited (FIL) is the parent | 22,104,200|Brown Bros Harrimn Ltd LUX   |FIL|
|holding company for various     |     77,220|J P Morgan, Bournemouth      |FIL|
|direct and indirect             |      9,831|Brown Bros Harrimn Ltd LUX   |FIL|
|subsidiaries, including FIL Fund|           |(C)                          |   |
|Management Limited (FFML), FIL  |           |                             |   |
|Investment Services Ltd (FISL), |           |                             |   |
|FIL Gestion (FIGEST), FIL Asset |           |                             |   |
|Management (Korea) Limited      |           |                             |   |
|(FIAKL), FIL Investments        |           |                             |   |
|Management (Hong Kong) Limited  |           |                             |   |
|(FIMHK), FIL Pension Management |           |                             |   |
|(FPM), Fidelity Investments     |           |                             |   |
|Japan (FIJ) and FIL Investments |           |                             |   |
|International (FII), investment |           |                             |   |
|managers for various non-US     |           |                             |   |
|investment companies and        |           |                             |   |
|institutional clients.          |           |                             |   |
+--------------------------------+-----------+-----------------------------+---+



+-----------------------------------------------------------------------------+
|Proxy Voting:                                                                |
|                                                                             |
+----------------------------------------------------------------+------------+
|10. Name of proxy holder:                                       |FIL Limited |
|                                                                |            |
+----------------------------------------------------------------+------------+
|11. Number of voting rights proxy holder will cease to hold:    |500,000     |
|                                                                |            |
+----------------------------------------------------------------+------------+
|12. Date on which proxy holder will cease to hold voting rights:|14 June 2010|
|                                                                |            |
+----------------------------------------------------------------+------------+




[HUG#1424654]