Directors' Dealings

IQE PLC
31 July 2006


IQE PLC

31 July 2006

                                    IQE plc

                               (the ''Company'')


                              DIRECTORS' DEALINGS

IQE plc announces that 104,555 new ordinary shares have been issued in payment
of Non Executive Directors' fees for April/June 2006. Following this issue the
total number of ordinary shares in issue is 317,017,748. The shares will be
allotted and issued in the form of block certificates as detailed below:


Non Exec Director                   Shares issued         Average price

Dr Godfrey Ainsworth                69,703                14.75p


Following this issue Non-executive Chairman of the Company Dr Godfrey
Ainsworth's total shareholding in the company is 2,877,968 shares, representing
0.91% of the current issued share capital. The remaining 34,852 shares were
issued to Wesley Clover Wales Limited in settlement in fees for Non Executive
Director, Simon Gibson, which Simon does not hold a beneficial interest.

Application has been made to the Financial Services Authority for the shares to
be admitted to AIM.



Contacts

IQE plc                                       [phone]
Dr Drew Nelson, President & CEO
Stuart Hall, CFO
Chris Meadows, Investor Relations

Noble & Company Limited                       [phone]
John Llewellyn-Lloyd
Graeme Bayley


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