Add. Listing/Director Shldg

IQE PLC
20 October 2004


20 October 2004


                            IQE plc ('the Company')                                        
                  Additional Listing / Director's Shareholding


Application has today been made to the London Stock Exchange for 172,728
ordinary shares of 1p each in the Company ('Ordinary Shares') to be admitted to
trading on AIM. These Ordinary Shares are being issued to satisfy payment of
non-executive directors' fees for the third quarter of 2004.

115,613 of these Ordinary Shares, representing approximately 0.04 per cent. of
the existing issued share capital of the Company, are being issued to Dr G.H.H.
Ainsworth in settlement of his Chairman's fees for the third quarter of 2004.
Following this issue, Dr G.H.H. Ainsworth will be interested in 1,627,020
Ordinary Shares, representing approximately 0.52 per cent. of the issued share
capital of the Company.

Admission of all the Ordinary Shares is expected to become effective on 25
October 2004.


For further information, please contact:

Leslie Coventry, IQE plc                        02920 839400



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