Holding(s) in Company

IQE PLC
26 October 2005


                            IQE plc (the 'Company')


Holding in Company



The Company was informed on 24 October 2005 by Gartmore Investment Management
plc that, following the sale of 501,989 ordinary shares of 1p each in the
Company ('Ordinary Shares') on 21 October 2005, Gartmore Investment Limited,
Gartmore Fund Managers Limited and Gartmore Global Partners had a reportable
interest in 40,592,810 Ordinary Shares representing approximately 12.84 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        15,137,969       4.79%        HSBC Global
Gartmore UK & Irish Smaller                                         Custody 
Companies                                                           Nominee
                                                                    UK Ltd

The Gartmore Limited Issue UK          3,669,006       1.16%        Goldman 
Small Cap Fund Ltd                                                  Sachs 
                                                                    Nominees Ltd

Strathclyde Pension Fund               7,744,279       2.45%        Nortrust
                                                                    Nominees
                                                                    Limited

The Alphagen Volantis Fund             8,695,822       2.75%        Vidacos
Limited                                                             Nominees Ltd
                                                                    A/C 1945

Gartmore Smaller Companies Trust       3,773,892       1.19%        BNY GIL 
plc                                                                 CLT A/C
                                                                    NOMS LTD 
                                                                    A/C LST

Gartmore Growth Opportunities          1,571,842       0.50%        BNY GIL CLT 
plc                                                                 A/C  NOMS 
                                                                    LTD A/C
                                                                    NWSC

Total                                 40,592,810       12.84%



26 October 2005







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