Director Shareholding

IQE PLC
24 September 2002



                            IQE PLC ('the Company')


                             Director Shareholding



The Company was today informed that 82,647 ordinary shares of 1p each in the
Company ('Ordinary Shares'), representing 0.04 per cent. of the issued share
capital of the Company, were purchased on 20 September 2002 at 9.75p per
Ordinary Share. These shares were purchased by Gambit Corporate Finance Limited,
a company of which G.H.H. Ainsworth, a director of the Company, is both a
shareholder and a director. Following this transaction, G.H.H. Ainsworth has a
beneficial interest in 373,519 Ordinary Shares, which represents approximately
0.2 per cent. of the Company's issued ordinary share capital.



24 September 2002


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