Director/PDMR Shareholding

IQE PLC
20 October 2005



                            IQE plc (the 'Company')

                               Director Dealings


The Company received notification on 20 October 2005 from Godfrey Ainsworth,
Non-executive Chairman of the Company, that on 19 October 2005 he purchased
100,000 ordinary shares of 1p each in the Company ('Ordinary Shares') at 8p per
Ordinary Share. Following this purchase Dr Ainsworth has a beneficial interest
in 2,232,341 Ordinary Shares representing approximately 0.71 per cent. of the
Company's issued ordinary share capital.

20 October 2005






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