IQE formally opens new Singapore Facility

Singapore, 4th November 2008: IQE, the leading global supplier of
advanced semiconductor wafer products and wafer services to the
semiconductor industry, is pleased to announce formal opening of its
new facility in Tampines, Singapore, following the relocation of its
Asia manufacturing facility.

The new plant will continue to produce advanced semiconductor wafers
for wireless applications such as mobile phones and WiFi devices but
will also provide capacity for new products such as materials for
advanced electronics and high-efficiency solar cells (photovoltaics).

During the last year, IQE's MBE Technology subsidiary has been
relocating its manufacturing operations from a site at the Singapore
Science Park that it has occupied since its formation in 1993, to a
new, state of the art facility within Singapore's newest industrial
development area in Tampines.

The new, purpose-built, high-tech 8,500 square metre facility houses
over 2,000 square metres of specialised cleanroom and will allow for
significant future expansion of IQE's manufacturing capacity in the
Far East.

In addition to the relocation of manufacturing tools from the
original Singapore site, equipment has also been transferred from
other parts of the group, particularly from the sister operation in
Bethlehem, Pennsylvania. The carefully orchestrated relocation of
manufacturing tools has been carried out in a way that has caused
minimal disruption to existing production capacity.

The facility was opened by His Excellency Mr Paul Madden, British
High Commissioner in Singapore, along with Dr Drew Nelson, Chief
Executive Officer of IQE plc and Mr Lim Swee Nian, Executive Director
of the Singapore Economic Development Board. The opening ceremony was
attended by almost 200 guests comprising customers, suppliers and a
number of contractors who had worked on the relocation project.

Mr L G Yeap, Managing Director and founder of IQE's MBE Technology
business in Singapore said:

"The opening of our new plant here today is the culmination of a
major exercise to move plant and equipment from one site to another
in a way that was seamless in terms of continuity of supply of
products to our customers.

"It is with great thanks to the professionalism, dedication and
support of our key customers, suppliers and contractors and the
experience and support of agencies such as the Singapore Economic
Development Board (EDB) that the whole process has been completed on
time and with minimal impact on our production processes.

Commenting at the opening of the new plant, Dr Drew Nelson said:

"Whilst it is unclear at this point what the impact of the global
financial crisis will have on the wireless communications industry,
the long term demand drivers for the industry are as strong as ever
and the demand for wireless products appears set to grow rapidly over
the coming years and this new facility provides us with the
capability to add capacity as and when required.

"This year also marks the 20th anniversary of the IQE Group which
currently operates manufacturing facilities on a global basis; in the
UK; the USA; and of course, the new facility here in Singapore."


Contacts:

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

College Hill ([phone])
Adrian Duffield
Jon Davies

Noble & Company Limited ([phone])
John Llewellyn-Lloyd
Sam Reynolds

Panmure Gordon (UK) Limited ([phone])
Aubrey Powell
Ashton Clanfield


NOTE TO EDITORS

IQE is the leading global supplier of advanced semiconductor wafers
with products that cover a diverse range of applications, supported
by an innovative outsourced foundry services portfolio that allows
the Group to provide a 'one stop shop' for the wafer needs of the
world's leading semiconductor manufacturers.

IQE uses advanced crystal growth technology (epitaxy) to manufacture
and supply bespoke semiconductor wafers ('epi-wafers') to the major
chip manufacturing companies, who then use these wafers to make the
chips which form the key components of virtually all high technology
systems. IQE is unique in being able to supply wafers using all of
the leading crystal growth technology platforms.

IQE's products are found in many leading-edge consumer,
communication, computing and industrial applications, including a
complete range of wafer products for the wireless industry, such as
mobile handsets and wireless infrastructure, Wi-Fi, WiMAX, base
stations, GPS, and satellite communications; optical communications,
optical storage (CD, DVD), laser optical mouse, laser printers &
photocopiers, thermal imagers, leading-edge medical products,
barcode, high efficiency LEDs and a variety of advanced silicon based
systems.

The manufacturers of these chips are increasingly seeking to
outsource wafer production to specialist foundries such as IQE in
order to reduce overall wafer costs and accelerate time to market.

IQE also provides bespoke R&D services to deliver customised
materials for specific applications and offers specialist technical
staff to manufacture to specification either at its own facilities or
on the customer's own sites. The Group is also able to leverage its
global purchasing volumes to reduce the cost of raw materials. In
this way IQE's outsourced services, provide compelling benefits in
terms of flexibility and predictability of cost, thereby
significantly reducing operating risk.

IQE operates six manufacturing facilities located in Cardiff (two)
and Milton Keynes in the UK; in Bethlehem, Pennsylvania and Somerset,
New Jersey in the USA; and Singapore. The Group also has 11 sales
offices located in major economic centres worldwide.


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