Record $20 million order book at New Jersey fac...

01 July 2008


IQE plc

Record $20 million order book at New Jersey facility as demand from
key customers' ramps.

IQE plc (AIM: IQE, "IQE" or the "Group") is pleased to announce that
it has received significant orders from its largest customers for
various products from the Group's New Jersey facility which bring the
total order book for this site to a record high of over US $20
million, deliverable within the next 12 months.

These record orders follow the announcement on 26 June 2008 of an
approximate US $20 million multi-year contract extension as sole
supplier of GaAs based pHEMT epi-wafers to a major US wireless
component manufacturer at the Group's Bethlehem business unit.  Both
of these orders are in line with the Board's expectations for the
current financial year.

The New Jersey orders come at a time when IQE is increasing
production capacity, particularly in terms of its MOCVD capability
for wireless products manufactured at its Somerset, Cardiff and
Bethlehem  facilities. Overall, MOCVD production capacity is planned
to grow by more than 50% by the end of 2008 compared with 2007, in
order to meet the increasing demand. Primary drivers for this growth
are components for 3G and other high speed wireless applications such
as WiFi 802.11n and WiMAX.

Alex Cerruzzi, GM and VP of IQE-RF in Somerset commented;

"We are strongly focused on delivering a highly cost effective
service to our customers, using leading edge epitaxial growth
technology and are very pleased to have won these orders. Currently,
our order book is the largest in our history.  As a result of the
growing demand for our products, we continue to bring on line further
capacity to meet the needs of our customers."

Dr Drew Nelson, President and Group CEO said:

"Global demand for our products for wireless devices continues to go
from strength to strength. Coming on top of our recent announcement
of a large contract extension for products manufactured by MBE tools
at our Bethlehem, PA facility; this increase clearly demonstrates the
continuing high market growth for high-end wireless mobile components
and the strength of our business model."


Contacts:

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

College Hill ([phone])
Adrian Duffield
Kate Norton

Noble & Company Limited (+ 44 20 7763 2200)
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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