Contract extension

IQE plc

10 June 2009

IQE plc (AIM: IQE, "the Group") the leading manufacturer of advanced
semiconductor wafers to the global semiconductor industry, is pleased
to announce the extension of a major contract from leading US
semiconductor manufacturer TriQuint Semiconductor (Nasdaq: TQNT) for
IQE's Gallium Nitride (GaN) wafer products.

IQE's New Jersey operation will continue to sub-contract to TriQuint
alongside BAE Systems and Lockheed Martin following TriQuint's recent
announcement that it had been awarded leadership of Phase III of a
multi-year gallium nitride (GaN) research and development contract by
the US Army Research Laboratory (ARL). The contract, funded by the
Defence Advanced Research Projects Agency (DARPA), was awarded based
on TriQuint and its partners surpassing Phase II goals.

The overall program is designed to develop new high power, wideband
GaN amplifiers for a range of defence and aerospace applications.
TriQuint Semiconductor will use IQE's GaN based HEMT (high electron
mobility transistor) wafers to support its new product development
for these applications.

Gallium Nitride power amplifiers offer much higher power capability,
efficiency and greater protection against electromagnetic radiation
than existing solid-state amplifier technologies commonly used today,
providing significant benefits in terms of both performance and lower
overall system costs.

Cathy Lee, TriQuint's Phase III program manager said:

"TriQuint is very excited to continue its leadership of a highly
qualified team in the development of this technology. In Phase II, we
developed a high performance, reliable gallium nitride process with
excellent reproducibility and high yield. We have enjoyed a close
working relationship with IQE throughout Phase II of this program and
this latest order is based on their solid support of us throughout
that relationship."

Alex Ceruzzi, VP and General Manager of IQE's New Jersey facility
commented:

"The continued relationship between IQE and TriQuint is a key
demonstration of IQE's ability to provide world class materials
across a broad RF product portfolio,  including emerging technologies
such as gallium nitride epitaxial wafers. We appreciate the continued
trust that TriQuint has placed in us to meet their needs as part of
the team for Phase III of this programme."

IQE's New Jersey facility is the leading GaN HEMT epi foundry, and
provides a complete portfolio of RF products, ranging from high
volume HEMTs, HBTs and BiFETs to advanced GaN based products.

(see also


http://www.triquint.com/contacts/press/dspPressRelease.cfm?pressid=413)







Contacts:

Technical/Sales: IQE RF ([phone])
Ivan Eliashevich
Shiping Guo

Press: IQE plc ([phone])
Chris Meadows






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, ultra high brightness LEDs, a variety of advanced silicon
based systems and high efficiency concentrator photovoltaic (CPV)
solar cells.

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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