Director Shareholding

IQE PLC
02 September 2002


                            IQE PLC ('the Company')

                             Director Shareholding

The Company was today informed that 31,000 ordinary shares 1p each in the
Company ('Ordinary Shares'), representing 0.02 per cent. of the issued share
capital of the Company, were purchased on 30 August 2002, all at 19p, as
follows:

•        1,000 Ordinary Shares by M.J.G. Ainsworth, son of G.H.H. Ainsworth, a
         director of the Company;
•        5,000 Ordinary Shares by G.H.H. Ainsworth, a director of the Company;
         and
•        25,000 Ordinary Shares by Gambit Corporate Finance Limited, a company
         of which G.H.H. Ainsworth is both a shareholder and a director.

Following these transactions, G.H.H. Ainsworth's beneficial interest is 49,604
Ordinary Shares, which represents approximately 0.03 per cent. of the Company's
issued ordinary share capital.


2 September 2002


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