Bank Facilities

IQE PLC
25 January 2008

25 January 2008



IQE plc





Significantly increased bank facilities agreed with Lloyds TSB demonstrate
confidence in IQE's growth prospects





IQE plc (AIM: IQE, 'the Group'), the leading global supplier of advanced wafer
products and services to the semiconductor industry, is pleased to announce that
it has appointed Lloyds TSB Corporate Markets as its principal banker and has
agreed new, significantly increased banking facilities to support IQE's
continued growth.



The new facilities provide funding of up to £15.5 million in the form of a term
loan of up to £8.5 million and a working capital facility of up to £7 million.
This replaces existing UK loans of £3.7 million and a UK overdraft facility of
£4 million, representing additional headroom of almost £8 million to finance
growth and working capital.



In addition, the Group retains its overseas working capital facility of £1
million.



Phil Rasmussen, IQE Chief Financial Officer, said



'The appointment of Lloyds TSB Corporate Markets follows a rigorous assessment
of several of the major UK banks to ensure that we have the right partnership as
we continue to grow rapidly.   We have selected Lloyds TSB Corporate Markets on
the basis that its Fast Growth Team has demonstrated an excellent understanding
of the needs of a dynamic and rapidly growing business like IQE.   Furthermore,
given current macro economic conditions, this new funding facility demonstrates
the confidence that exists in IQE's business model, its markets and its
management team.'



Andrew Hunter from Lloyds TSB's Fast Growth Team commented:



'We are delighted to support IQE through this key stage in its development. We
view IQE as a high performing business that has established an enviable position
within the international compound semiconductor wafer market.  The Lloyds TSB
Fast Growth team worked closely with colleagues across Lloyds TSB Corporate
Markets to provide a flexible funding solution, enabling IQE to take advantage
of opportunities for growth.'



Jason Evans, Area Director and Head of Lloyds TSB Corporate Markets for South
Wales, added:



'Through careful acquisition, the management of IQE has established a market
leading business which is very well placed for continued growth. We are
delighted to assist such a dynamic and high profile quoted company with a global
HQ based in South Wales'.



For further information contact


IQE plc:
Phillip Rasmussen, Chief Finance Officer                     [phone]
Chris Meadows, Investor Relations Executive

Noble:                                                       [phone]
John Llewellyn-Lloyd/Andy Yeo
Panmure Gordon                                               [phone]
Aubrey Powell/Ashton Clanfield

College Hill:
Adrian Duffield/Ben Way                                      [phone]



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.





                      This information is provided by RNS
            The company news service from the London Stock Exchange