Issue of Equity

IQE PLC
13 June 2000


                            IQE plc
                               
Issue of 210,526 Ordinary Shares of 10p each.

IQE  plc announces that Lehman Brothers International (Europe)
and  Beeson Gregory Limited have exercised the Over  Allotment
Option granted to them by the Company and certain shareholders
of  the  Company,  as  referred to in  the  Company's  Listing
Particulars dated 18 April 2000.  Accordingly, the Company has
today issued a further 210,526 Ordinary Shares of 10p each and
the  Selling  Shareholders have sold 70,175 existing  Ordinary
Shares.


Contact: Jonathan Freeman
         Beeson Gregory           Tel: [phone]