Holding(s) in Company

IQE PLC
24 August 2007

IQE PLC

24 August 2007

                                    IQE plc

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

                            Notification of Interest


The Company was informed on 24 August 2007 that Aviva plc and its subsidiaries
('Aviva') had a notifiable interest of 27,860,421 ordinary shares in IQE, being
6.47% of the issued share capital of the Company. Aviva is interested in IQE
through the entities as detailed below:

Registered Holding                              Number of ordinary shares
BNY Norwich Union Nominees Limited*                             2,829,873
Chase GA Group Nominees Limited*                                7,480,416
Chase Nominees Limited*                                           945,000
CUIM Nominee Limited*                                           2,626,132
CUIM Nominee Limited                                            6,479,000
Vidacos Nominees Limited                                        7,500,000
TOTAL                                                          27,860,421

*denotes direct interest

The total number of the Company's ordinary shares of in issue is 430,762,168.
The ordinary shares referred to above are the ordinary shares of 1 pence each.

Contacts

IQE plc                                                [phone]
Leslie Coventry

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



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