Contract Win

IQE PLC
28 September 2007





28 September 2007



IQE plc



IQE to team with Raytheon as part of $6.5m US government contract win.



IQE plc (AIM: IQE), the UK-based leading outsource supplier of advanced wafers
and outsource wafer services to the global semiconductor industry , announces
that its  Pennsylvania based manufacturing facility is to be part of a team led
by US defense contractor Raytheon, to integrate high-performance compound
semiconductors with low-cost commercial complementary metal oxide semiconductor
silicon (CMOS) wafers.  This will achieve superior cost-benefit performance
compared with either technology on its own.



Raytheon (NYSE: RTN) announced yesterday that it had been awarded a $6.5 million
contract to develop affordable, high-performance semiconductor integrated
circuits for electronic-driven military systems. The US Defense Advanced
Research Projects Agency (DARPA) is funding the contract as part of its Compound
Semiconductor Materials on Silicon (COSMOS) program.



Dr. Katherine Herrick, Raytheon Integrated Defense Systems (IDS) program manager
commented:



'The objective is to develop a high-resolution analog-to-digital converter with
low power consumption.  However, the benefits of the program go significantly
beyond the specific objective. The processes lead to advanced low-cost analog
and digital, microwave and millimeter-wave integrated circuits with applications
for next-generation radar, communications and electronic warfare systems.'



Mark Russell, vice president, IDS Engineering.



'Our team's process of directly growing a compound semiconductor on a uniquely
engineered silicon substrate provides a new technical approach that is creating
a class of integrated circuits that will enable more affordable systems for the
warfighter.



Steve Gergar, IQE's Vice President and General Manager in Bethlehem PA said:



'IQE has enjoyed a long relationship with Raytheon and is pleased to be part of
the team to share in this latest US government funded program.  IQE's role in
this important project demonstrates our reputation for expertise, experience and
quality in advanced semiconductor materials manufacturing processes for both
current and future applications'



Other partners in the COSMOS project are Raytheon Systems Limited in Glenrothes,
Scotland; Teledyne Scientific Imaging Company in Thousand Oaks, Calif.;
Massachusetts Institute of Technology in Cambridge, Mass.; Paradigm Research LLC
in Windham, N.H.; Soitec in Grenoble, France; and Silicon Valley Technology
Center in San Jose, Calif.



Integrated Defense Systems is Raytheon's leader in Joint Battlespace Integration
providing affordable, integrated solutions to a broad international and domestic
customer base, including the U.S. Missile Defense Agency, the U.S. Armed Forces
and the Department of Homeland Security.



Contacts:


IQE plc : www.iqep.com

Drew Nelson                                               [phone]
Phil Rasmussen
Chris Meadows


College Hill:
Adrian Duffield / Ben Way                                 [phone]


Noble and Company :
John Llewellyn-Lloyd/ Sam Reynolds                      + 44 (0) 20 7763 2200





NOTE TO EDITORS



IQE

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