Holding(s) in Company

26 June 2009
For immediate release

IQE plc
("IQE" or the "Company")

Holding(s) in Company




+-------------------------------------------------------------------+
| TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARESi                   |
|-------------------------------------------------------------------|
|                                                 |                 |
|-------------------------------------------------+-----------------|
| 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              |  Yes   |
|----------------------------------------------------------+--------|
| An acquisition or disposal of qualifying financial       |        |
| instruments which may result in the acquisition of       |   No   |
| shares already issued to which voting rights are         |        |
| attached                                                 |        |
|----------------------------------------------------------+--------|
| An acquisition or disposal of instruments with similar   |   No   |
| economic effect to qualifying financial instruments      |        |
|----------------------------------------------------------+--------|
| An event changing the breakdown of voting rights         |   No   |
|----------------------------------------------------------+--------|
| Other (please         | Changes to disclosure            |   No   |
| specify):             | requirements                     |        |
|-------------------------------------------------------------------|
| 3. Full name of person(s) subject   | Aviva plc & its             |
| to the                              | subsidiaries                |
| notification obligation: iii        |                             |
|-------------------------------------+-----------------------------|
|                                     | Registered Holder:          |
|                                     |                             |
|                                     | BNY Norwich Union Nominees  |
|                                     | Limited 1,849,214*          |
|                                     | Chase GA Group Nominees     |
| 4. Full name of shareholder(s)      | Limited 9,275,934*          |
|  (if different from 3.):iv          | Chase Nominees Limited      |
|                                     | 945,000*                    |
|                                     | CUIM Nominee Limited        |
|                                     | 1,006,918*                  |
|                                     |                             |
|                                     | * denotes direct interest   |
|-------------------------------------+-----------------------------|
| 5. Date of the transaction and date |                             |
| on                                  | 19th June 2009              |
| which the threshold is crossed or   |                             |
| reached: v                          |                             |
|-------------------------------------+-----------------------------|
| 6. Date on which issuer notified:   | 23rd June 2009              |
|-------------------------------------+-----------------------------|
| 7. Threshold(s) that is/are crossed | 3% to <3% Change at Direct  |
| or                                  | Interest Level              |
| reached: vi, vii                    |                             |
+-------------------------------------------------------------------+



+----------------------------------------------------------------------------------------------------------------+
|8. Notified details:                                                                                            |
|----------------------------------------------------------------------------------------------------------------|
|A: Voting rights attached to shares viii, ix                                                                    |
|----------------------------------------------------------------------------------------------------------------|
|Class/type of |Situation previous                |Resulting situation after the triggering transaction          |
|shares        |to the triggering                 |                                                              |
|if possible   |transaction                       |                                                              |
|using         |----------------------------------+--------------------------------------------------------------|
|the ISIN CODE |Number          |Number           |Number of   |Number of voting          |% of  voting rights x |
|              |of              |of               |shares      |rights                    |                      |
|              |Shares          |Voting           |------------+--------------------------+----------------------|
|              |                |Rights           |Direct      |Direct xi   |Indirect xii |Direct  |Indirect     |
|--------------+----------------+-----------------+------------+------------+-------------+--------+-------------|
|  GB0009619924|      21,610,488|       21,610,488|  13,077,066|  13,077,066|          Not|   2.99%|          Not|
|              |                |                 |            |            |  disclosable|        |  disclosable|
|----------------------------------------------------------------------------------------------------------------|
|                                                                                                                |
|----------------------------------------------------------------------------------------------------------------|
|B: Qualifying Financial Instruments                                                                             |
|----------------------------------------------------------------------------------------------------------------|
|Resulting situation after the triggering transaction                                                            |
|----------------------------------------------------------------------------------------------------------------|
|Type of financial    |Expiration       |Exercise/                    |Number of voting         |% of voting     |
|instrument           |date xiii        |Conversion Period xiv        |rights that may be       |rights          |
|                     |                 |                             |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 price |Expiration  |Exercise/       |Number of voting rights       |% of voting rights |
|financial      |               |date xvii   |Conversion      |instrument refers to          |xix, xx            |
|instrument     |               |            |period xviii    |                              |                   |
|---------------+---------------+------------+----------------+------------------------------+-------------------|
|               |               |            |                |                              |Nominal  |Delta    |
|               |               |            |                |                              |---------+---------|
|               |               |            |                |                              |         |         |
|----------------------------------------------------------------------------------------------------------------|
|                                                                                                                |
|----------------------------------------------------------------------------------------------------------------|
|Total (A+B+C)                                                                                                   |
|----------------------------------------------------------------------------------------------------------------|
|Number of voting rights                                 |Percentage of voting rights                            |
|--------------------------------------------------------+-------------------------------------------------------|
|13,077,066                                              |2.99%                                                  |
+----------------------------------------------------------------------------------------------------------------+



+-------------------------------------------------------------------+
| 9. Chain of controlled undertakings through which the voting      |
| rights and/or the                                                 |
| financial instruments are effectively held, if applicable: xxi    |
|-------------------------------------------------------------------|
|                                                                   |
| The voting rights are managed and controlled by Aviva Investors   |
| Global Services Limited, with the following chain of controlled   |
| undertakings:-                                                    |
|                                                                   |
| Aviva Investors Global Services Limited:                          |
| *        Aviva plc (parent company)                               |
| *        Aviva Group Holdings Limited (wholly owned subsidiary of |
|   Aviva plc)                                                      |
| *        Aviva Investors Holdings Limited (wholly owned           |
|   subsidiary of Aviva Group Holdings Limited)                     |
| *        Aviva Investors Global Services Limited (wholly owned    |
|   subsidiary of Aviva Investors Holdings Limited)                 |
|                                                                   |
|                                                                   |
|-------------------------------------------------------------------|
|                                                                   |
|-------------------------------------------------------------------|
| Proxy Voting:                                                     |
|-------------------------------------------------------------------|
| 10. Name of the proxy holder:     | See Section 4                 |
|-----------------------------------+-------------------------------|
| 11. Number of voting rights proxy |                               |
| holder will cease                 |                               |
| to hold:                          |                               |
|-----------------------------------+-------------------------------|
| 12. Date on which proxy holder    |                               |
| will cease to hold                |                               |
| voting rights:                    |                               |
|-------------------------------------------------------------------|
|                                                                   |
|-------------------------------------------------------------------|
|                                   | Figures are based on a total  |
| 13. Additional information:       | number of voting rights of    |
|                                   | 435,911,622                   |
+-------------------------------------------------------------------+





Contacts:

IQE plc ([phone])
Chris Meadows

Noble & Company Limited (+ 44 20 7763 2200)
John Llewellyn-Lloyd
Sam Reynolds

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