Holding(s) in Company

IQE PLC
18 June 2004



                            IQE plc ('the Company')
                             Holding in the Company

The Company was yesterday informed by Scottish Widows Investment Partnership Ltd
on behalf of Lloyds TSB Group plc and its subsidiary companies, that they are
interested in 27,770,662 ordinary shares of 1 pence each in the Company
('Ordinary Shares'), which represents 8.80 per cent. of the Company's issued
share capital. Of this interest, 25,770,662 Ordinary Shares are material
interests, which represents 8.169 per cent of the Company's current issued share
capital. The registered holder of the material interests is State Street
Nominees Ltd.

18 June 2004


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