Holding(s) in Company

07 October 2010
IQE plc
("IQE" or the "Company")

Holding(s) in Company

+------------------------------------------------------------------------------+
|TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARES(i)                             |
+----------------------------------------------+-------------------------------+
                                               |
+----------------------------------------------+-------------------------------+
|1. Identity of the issuer or the underlying   |                               |
|issuer                                        |            IQE PLC            |
|of existing shares to which voting rights are |                               |
|attached:(ii)                                 |                               |
+----------------------------------------------+-------------------------------+
|2 Reason for the notification (please tick the appropriate box or boxes):     |
+-------------------------------------------------------------------------+----+
|An acquisition or disposal of voting rights                              |    |
+-------------------------------------------------------------------------+----+
|An acquisition or disposal of qualifying financial instruments which may |    |
|result in the acquisition of shares already issued to which voting rights|    |
|are attached                                                             |    |
+-------------------------------------------------------------------------+----+
|An acquisition or disposal of instruments with similar economic effect to|    |
|qualifying financial instruments                                         |    |
+-------------------------------------------------------------------------+----+
|An event changing the breakdown of voting rights                         |    |
+-----------------------+-------------------------------------------------+----+
|Other (please specify):|Notification due to Placing                      | X  |
+-----------------------+--------------+----------------------------------+----+
|3. Full name of person(s) subject to  |                                       |
|the                                   |   Prudential plc group of companies   |
|notification obligation:(iii)         |                                       |
+--------------------------------------+---------------------------------------+
|4. Full name of shareholder(s)        |                                       |
| (if different from 3.):(iv)          |                                       |
+--------------------------------------+---------------------------------------+
|5. Date of the transaction and date on|                                       |
|which the threshold is crossed or     |            05 October 2010            |
|reached:(v)                           |                                       |
+--------------------------------------+---------------------------------------+
|6. Date on which issuer notified:     |            06 October 2010            |
+--------------------------------------+---------------------------------------+
|7. Threshold(s) that is/are crossed or|               Below 5%                |
|reached:(vi, vii)                     |                                       |
+-----------------------+--------------+-------+--------------------------+----+




+---------------------------------------------------------------------------------+
|8. Notified details:                                                             |
+---------------------------------------------------------------------------------+
|A: Voting rights attached to shares (viii, ix)                                   |
+------------+----------------------+---------------------------------------------+
|Class/type  |Situation previous    |Resulting situation after the triggering     |
|of          |to the triggering     |transaction                                  |
|shares      |transaction           |                                             |
|            +----------+-----------+-------------+---------------+---------------+
|if possible |Number    |Number     |Number       |Number of      |% of  voting   |
|using       |of        |of         |of shares    |voting         |rights (x)     |
|the ISIN    |Shares    |Voting     |             |rights         |               |
|CODE        |          |R ghts     +-------------+------+--------+------+--------+
|            |          |           |Direct       |Direct|Indirect|Direct|Indirect|
|            |          |           |             |(xi)  |(xii)   |      |        |
+------------+----------+-----------+-------------+------+--------+------+--------+
|GB0009619924|          |           |  Below 5%   |Below |        |Below |        |
|            |23,450,000|23,450,000 |             |  5%  |        |  5%  |        |
+------------+----------+-----------+-------------+------+--------+------+--------+
|            |          |           |             |      |        |      |        |
+------------+----------+-----------+-------------+------+--------+------+--------+

+---------------------------------------------------------------------------------+
|B: Qualifying Financial Instruments                                              |
+---------------------------------------------------------------------------------+
|Resulting situation after the triggering transaction                             |
+--------------+----------+------------------------+---------------+--------------+
|Type of       |Expiration|Exercise/               |Number of      |% of voting   |
|financial     |date(xiii)|Conversion Period(xiv)  |voting         |rights        |
|instrument    |          |                        |rights that may|              |
|              |          |                        |be             |              |
|              |          |                        |acquired if the|              |
|              |          |                        |instrument is  |              |
|              |          |                        |exercised/     |              |
|              |          |                        |converted.     |              |
+--------------+----------+------------------------+---------------+--------------+
|              |          |                        |               |              |
+--------------+----------+------------------------+---------------+--------------+

+---------------------------------------------------------------------------------+
|C: Financial Instruments with similar economic effect to Qualifying Financial    |
|Instruments (xv, xvi)                                                            |
+---------------------------------------------------------------------------------+
|Resulting situation after the triggering transaction                             |
+-------------+---------+----------+-------------+----------+---------------------+
|Type of      |Exercise |Expiration|Exercise/    |Number of |% of voting rights   |
|financial    |price    |date      |Conversion   |voting    |(xix, xx)            |
|instrument   |         |(xvii)    |period(xviii)|rights    |                     |
|             |         |          |             |instrument|                     |
|             |         |          |             |refers to |                     |
|             |         |          |             |          |                     |
+-------------+---------+----------+-------------+----------+-------+-------------+
|             |         |          |             |          |Nominal|Delta        |
|             |         |          |             |          +-------+-------------+
|             |         |          |             |          |       |             |
+-------------+---------+----------+-------------+----------+-------+-------------+

+---------------------------------------------------------------------------------+
|Total (A+B+C)                                                                    |
+------------------------------------+--------------------------------------------+
|Number of voting rights             |Percentage of voting rights                 |
+------------------------------------+--------------------------------------------+
|Below 5%                            |Below 5%                                    |
+------------+++--------+-+--------+++-----------+++-----+--+-----+++----+--------+




+--------------------------------------------------------------------------+
|9. Chain of controlled undertakings through which the voting rights and/or|
|the                                                                       |
|financial instruments are effectively held, if applicable:(xxi)           |
+--------------------------------------------------------------------------+
|                                                                          |
|                                                                          |
+--------------------------------------------------------------------------+

+--------------------------------------------------------------------------+
|Proxy Voting:                                                             |
+-------------------------------------------------+------------------------+
|10. Name of the proxy holder:                    |          N/A           |
+-------------------------------------------------+------------------------+
|11. Number of voting rights proxy holder will    |                        |
|cease                                            |          N/A           |
|to hold:                                         |                        |
+-------------------------------------------------+------------------------+
|12. Date on which proxy holder will cease to hold|          N/A           |
|voting rights:                                   |                        |
+-------------------------------------------------+------------------------+

+-----------------------------+--------------------------------------------+
|                             |                                            |
|13. Additional information:  |We no longer have a notifiable interest.    |
+-----------------------------+--------------------------------------------+
|14. Contact name:            |Ryan Dowling / Mark Thomas                  |
|                             |M&G Investment Management Limited           |
+-----------------------------+--------------------------------------------+
|15. Contact telephone number:|020 7548 2979 / 020 7548 3266               |
+-----------------------------+-------------------+------------------------+




[HUG#1449979]








This announcement is distributed by Thomson Reuters on behalf of 
Thomson Reuters clients. The owner of this announcement warrants that: 
(i) the releases contained herein are protected by copyright and 
    other applicable laws; and 
(ii) they are solely responsible for the content, accuracy and 
     originality of the information contained therein. 
    
Source: IQE plc via Thomson Reuters ONE