Result of Equity Issue

IQE PLC
7 December 2001



7 December 2001



NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN THE USA, CANADA, AUSTRALIA OR
                                    JAPAN


                           IQE plc (' the Company')

                            Result of Equity Issue


Placing and Open Offer of 13,152,247 new ordinary shares of 1p each ('Offer
Shares') in the Company at 155p per share (the 'Placing Price')


The Company today announces the results of its Placing and Open Offer
previously announced on 14 November 2001. 5,106,062 Offer Shares have been
taken up by Qualifying Shareholders at the Placing Price, representing 38.8
per cent. of the Open Offer, and 8,046,185 Offer Shares, being those Offer
Shares not taken up by Qualifying Shareholders, have been conditionally placed
by Beeson Gregory Limited, as agent for the Company at the Placing Price.


The Placing and Open Offer is conditional, inter alia, on approval of the
resolution to be proposed at the Company's EGM to be held on 10 December 2001.


In connection with the Placing and Open Offer, Beeson Gregory Limited as
stabilising manager may over-allot or effect transactions that stabilise or
maintain the market price of the ordinary shares of the Company at a level
which might not otherwise prevail in the open market. Such stabilising
transactions, if commenced, may take place from 8.00 am on 12 December 2001
until the close of business on Friday 11 January 2002 and may be discontinued
at any time.



Beeson Gregory Limited, which is regulated by the Financial Services
Authority, has approved publication of this document for the purposes of
section 21 of the Financial Services and Markets Act 2000.


Further Information

Dr Drew Nelson, IQE                                     02920 839 400

Jonathan Freeman, Beeson Gregory                        020 7488 4040