Holding(s) in Company

12 October 2010
IQE plc
("IQE" or the "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):|Increase in issued Capital                     |  X   |
+-----------------------+--------------+--------------------------------+------+
|3. Full name of person(s) subject to  |                                       |
|the                                   |Dr A W Nelson                          |
|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     |05/10/10                               |
|reached: (v)                          |                                       |
+--------------------------------------+---------------------------------------+
|6. Date on which issuer notified:     |08/10/10                               |
+--------------------------------------+---------------------------------------+
|7. Threshold(s) that is/are crossed or|6%                                     |
|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 voting   |% of  voting   |
|using       |of        |of         |of shares    |rights             |rights (x)     |
|the ISIN    |  ares    |V ting     +-------------+----------+--------+------+--------+
|CODE        |          |Rights     |Direct       |Direct    |Indirect|Direct|Indirect|
|            |          |           |             |(xi)      |(xii)   |      |        |
+------------+----------+-----------+-------------+----------+--------+------+--------+
|GB0009619924|27,391,303| 27,391,303|   27,391,303|27,391,303|        | 5.35%|        |
+------------+----------+-----------+-------------+----------+--------+------+--------+
|            |          |           |             |          |        |      |        |
+------------+----------+-----------+-------------+----------+--------+------+--------+

+-------------------------------------------------------------------------------------+
|B: Qualifying Financial Instruments                                                  |
+-------------------------------------------------------------------------------------+
|Resulting situation after the triggering transaction                                 |
+--------------+----------+------------------------+-------------------+--------------+
|Type of       |Expiration|Exercise/               |Number of voting   |% of voting   |
|financial     |date(xiii)|Conversion Period(xiv)  |rights that may be |rights        |
|instrument    |          |                        |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                     |
+------------------------------------+------------------------------------------------+
|27,391,303                          |5.35%                                           |
+------------+++--------+-+--------+++-----------+++---------++-------++-----++-------+




+------------------------------------------------------------------------------+
|9. Chain of controlled undertakings through which the voting rights and/or the|
|financial instruments are effectively held, if applicable:(xxi)               |
+------------------------------------------------------------------------------+
|                                                                              |
|           23,318,844         Roy Nominees Limited / RBC                      |
|             3,405,792         Brewin Nominees Limited (SIPP)                 |
|               666,667         Dr A W Nelson                                  |
|                                                                              |





[HUG#1451282]








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