Director Shareholding

IQE PLC
06 September 2002



                            IQE PLC ('the Company')


                             Director Shareholding


The Company was today informed that 225,000 ordinary shares 1p each in the
Company ('Ordinary Shares'), representing 0.12 per cent. of the issued share
capital of the Company, were purchased between 4 September 2002 and 6 September
2002, at between 12p and 16.25p per Ordinary Share. All of 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. The
shares were purchased as follows:



Date of purchase               Number of shares purchased     Price per share (p)

4 September 2002               25,000                                     16.25
5 September 2002               100,000                                    15.00
6 September 2002               100,000                                    12.00


Following these transactions, G.H.H. Ainsworth's beneficial interest is 274,604
Ordinary Shares, which represents approximately 0.15 per cent. of the Company's
issued ordinary share capital.




6 September 2002


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