Director/PDMR Shareholding

IQE PLC
09 January 2007

IQE plc
9 January 2007

                            IQE plc ('the Company')

                              DIRECTORS' DEALINGS

IQE plc announces that 116,105 new ordinary shares have been issued in payment
of Non-Executive Directors' fees for October to December 2006. Following this
issue the total number of ordinary shares in issue is 430,002,487. The shares
will be allotted and issued as detailed below:

Non Exec Director                 Shares issued               Average price

Dr Godfrey Ainsworth              87,274                      17.83p

Following this issue Non-Executive Chairman of the Company Dr Godfrey
Ainsworth's total shareholding in the Company is 3,139,188 shares, representing
0.73% of the current issued share capital. The remaining 28,831 shares were
issued to Wesley Clover Wales Limited in settlement of fees for Non-Executive
Director Simon Gibson in which Simon does not hold a beneficial interest.

Application has been made to the London Stock Exchange for the shares to be
admitted to AIM.

Contacts

IQE plc                                          [phone]
Dr Drew Nelson, President & CEO
Chris Meadows, Investor Relations

Noble & Company Limited                          [phone]
John Llewellyn-Lloyd
Graeme Bayley


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