Director/PDMR Shareholding

IQE plc
("IQE" or the "Company")

28 October 2009

IQE plc announces that 386,837 new ordinary shares have been issued
in settlement of Non-Executive Directors' fees for the period of
April to September 2009.

A total of 309,730 new ordinary shares have been issued to
Non-Executive Chairman Dr Godfrey Ainsworth in settlement of NED fees
(excluding VAT) which were invoiced by Gambit Corporate Finance of
which Dr Ainsworth is Managing Partner. 232,298 of these shares have
been transferred to a nominee account to the order of his partners.
Dr Ainsworth has a beneficial interest in the remaining 77,432
shares. Following this issue, Dr Ainsworth's total beneficial
interest in the Company is 2,960,569 shares representing 0.66% of the
issued share capital.

77,107 of the new ordinary shares have been issued to Fishstone
Limited in respect of Non-Executive Director Simon Gibson's NED fees.
Following this issue Simon Gibson's total beneficial interest in the
Company is 301,855 shares representing 0.06% of the issued share
capital.

Application has been made to the London Stock Exchange for the shares
to be admitted to AIM. Admission to trading on AIM of these Ordinary
Shares is expected to occur on Tuesday 3 November 2009.

Following this issue the total number of Ordinary Shares in issue
will be 442,898,996.


Contacts:

IQE plc ([phone])
Chris Meadows
Phil Rasmussen

Noble & Company Limited (+ 44 20 7763 2200)
John Llewellyn-Lloyd
Sam Reynolds

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