Acquisition

IQE PLC
22 November 2000

                   IQE plc
                            
      IQE ACQUIRES WAFER TECHNOLOGY LIMITED

IQE  plc,  the  leading outsource supplier  of  epitaxial
wafers to the Compound Semiconductor Industry, is pleased
to  announce its first major acquisition, that  of  Wafer
Technology  International Limited, a global  supplier  of
III-V compound semiconductor substrates and materials.

The acquisition will secure for IQE an important part  of
it's supply chain which is becoming increasingly critical
in  this  sector of the Compound Semiconductor  industry.
It  will allow IQE to offer a unique and secure range  of
outsource  wafer  products  to  this  industry  and  will
introduce  new customers to both IQE and Wafer Technology
Limited.  It will also provide IQE direct access  to  key
Indium Phosphide (InP) wafer products, which are not only
critical  for  most  optical  fibre  light  emitting  and
detecting  devices but are also viewed  as  an  essential
material  for  the  electronic  components  required  for
higher speed communication systems.

Wafer  Technology  Limited employs 57 people  and  has  a
37,000  sq ft facility in Milton Keynes, UK. The  Company
employs   both   Vertical  Gradient  Freeze   (VGF)   and
Czochralski growth techniques to manufacture its range of
Gallium  Arsenide  (GaAs), Indium  Phosphide  (InP),  and
other  specialist  III-V substrates in diameters  ranging
from  2'  to  4', which are supplied worldwide  to  major
manufacturers of electronic and opto-electronic  devices.
Wafer  Technology is also a key supplier of  high  purity
bulk  GaAs and InP polycrystalline feedstock to the  rest
of   the  industry.  The  Company  has  long-term  supply
agreements  in  place  for  its critical  raw  materials,
particularly high purity metals.

Financing of the acquisition will be by a combination  of
cash   (raised   earlier  this  year   specifically   for
acquisitions),   loan  notes  and  shares.    The   total
consideration at IQE s closing share price yesterday  is
£41.3   million.  The  acquisition  will  be  immediately
accretive to IQE pre-goodwill earnings.

Martin Lamb will join the Main Board of IQE plc and  will
also continue as CEO of Wafer Technology Limited.

Dr Drew Nelson, Chairman & CEO of IQE plc commented 'This
is  IQE's first major acquisition and we are very pleased
to welcome Wafer Technology Limited as part of the Group.
There is great synergy between the two businesses and the
combination will considerably strengthen the position  of
the  Group, enabling us to offer a highly secure and wide
ranging combination of epi-materials and support products
to the rapidly growing Compound Semiconductor Industry'.

Martin Lamb, CEO of Wafer Technology Limited added 'The
combination  of  Wafer Technology Limited  and  IQE  will
provide  the  Compound Semiconductor  Industry  community
with  a  unique materials product range. The availability
of  both epitaxial services and bulk materials within the
Group will position us well to take full advantage of the
accelerated growth we are seeing in the Industry.  We are
very  excited  about the prospects for  Wafer  Technology
Limited  as part of the IQE Group.'


For further information contact :
IQE plc
Drew Nelson                   Tel :[phone]
Buchanan Communications
Tim Thompson / Nicola Cronk   Tel : [phone]

IQE plc (the 'Company') - Additional Listing

Application  has been made to the London  Stock  Exchange
and UK Listing Authority for 8,750,000 ordinary shares of
1  pence  each  in  the Company to  be  admitted  to  the
Official  List  pursuant  to  the  acquisition  of  Wafer
Technology  Limited  and  Wafer Technology  International
Limited.  Admission is expected to occur on 22nd November
2000.