Holding(s) in Company

IQE PLC
12 September 2005


                            IQE plc (the 'Company')

                                Holding in Company

The Company was informed on 12 September 2005 by Gartmore Investment Management
plc that, following the sale of 1,000,000 ordinary shares of 1p each in the
Company ('Ordinary Shares') on 6 September 2005, Gartmore Investment Limited,
Gartmore Fund Managers Limited and Gartmore Global Partners had a reportable
interest in 40,914,003 Ordinary Shares representing approximately 12.94 per
cent. of the issued share capital of the Company. The above Ordinary Shares are
held as follows:

Beneficial owner              Number of      Percentage of            Registered
                        Ordinary Shares       issued share              holder
                                                 capital
Gartmore Fund
Managers Ltd
A/C Gartmore
UK & Irish
Smaller
Companies                  15,137,969               4.79%            HSBC Global
                                                                 Custody Nominee
                                                                        UK Ltd
The Gartmore
Limited Issue
UK Small Cap
Fund Ltd                    3,669,006               1.16%          Goldman Sachs
                                                                  Nominees Ltd
Strathclyde
Pension Fund                7,744,279               2.45%               Nortrust
                                                                        Nominees
                                                                      Litmited
The Alphagen
Volantis Fund
Limited                     8,445,822               2.67%                Vidacos
                                                                    Nominees Ltd
                                                                      A/C 1945
Gartmore
Smaller
Companies
Trust plc                   3,773,892               1.19%        BNY GIL CLT A/C
                                                                    NOMS LTD A/C
                                                                           LST
Gartmore
Growth
Opportunities
plc                         2,143,035               0.68%        BNY GIL CLT A/C
                                                                    NOMS LTD A/C
                                                                          NWSC
             Total         40,914,003              12.94%

Further to this, the Company was also notified on 12 September by UBS AG that as
of the close of business on 5 September 2005, UBS AG, acting through its
business group and legal entities, no longer has a notifiable interest in the
issued ordinary share capital of the Company.

12 September 2005




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