Holding(s) in Company

IQE PLC
18 August 2006

IQE plc

18 August 2006

                                    IQE plc

                          (the ''Company'' or ''IQE'')

                            Notification of Interest

The Company has been informed by a letter dated 16 August 2006 that following
the acquisition of 15,250,000 shares at 13.75p on 11 August 2006, Gartmore
Investment Management plc ('Gartmore') had a notifiable interest in 45,488,216
ordinary 1p shares in IQE plc, equivalent to 11.25% of the issued share capital
of the Company.

Gartmore's shares are split between the following companies:

Fund Management Company                                  Number of shares held

Gartmore Investment Ltd                                       30,245,802

Gartmore Fund Managers Ltd                                    15,242,414

TOTAL                                                         45,488,216



Contacts

IQE plc                    [phone]
Leslie Coventry

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




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