IQE PLC
28 March 2008



IQE plc
28 March 2008


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

                              DIRECTORS' DEALINGS



Dr Godfrey Ainsworth, Non-Executive Chairman of IQE, has previously reported a
beneficial interest in 2,502,621 shares held in the name of Gambit Corporate
Finance of which he is a partner.  On 27 March 2008 he notified the Company that
he has become the sole beneficiary of 819,271 of these "Gambit" shares and other
equity partners in Gambit will become the sole beneficiaries of the remaining
Gambit holding.  This change allows individual partners to put in to effect
personal tax planning measures and is as a consequence of the changes in UK
Capital Gains Tax to be implemented on 6th April 2008. The transferees have
given an undertaking that they will not, otherwise to effect tax planning, sell
or transfer their beneficial interest in these shares for a period of 12 months
from the date of this announcement.

Consequently Dr Ainsworth now has a sole beneficial interest in 2,605,570 shares
representing 0.6% of the issued share capital of the Company, being 431,043,197
ordinary shares of 1p each.




Contacts:

IQE plc                                               +44 29 2083 9400
Drew Nelson
Phil Rasmussen
Chris Meadows

College Hill                                          +44 20 7457 2020
Adrian Duffield/Ben Way

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

Panmure Gordon (UK) Limited                           +44 20 7459 3600
Aubrey Powell/ Ashton Clanfield




NOTE TO EDITORS

IQE plc is the leading global supplier of advanced semiconductor wafers with
products that cover a diverse range of applications. It is able to provide a
'one stop shop' for the wafer needs of the world's leading compound
semiconductor manufacturers, who in turn use these wafers to make the chips
which form the key components of virtually every high technology system. IQE has
particular focus on the growing global wireless sector for applications
including; mobile handsets, wireless infrastructure, Wi-Fi, WiMAX, base
stations, GPS and satellite communications; as well as for the optical
communication sector including; optical storage (CD, DVD), laser optical mice,
laser printers & photocopiers, thermal imagers, leading-edge medical products,
bar-coding, high efficiency LEDs and advanced solar cells.

The manufacturers of these chips are increasingly seeking to outsource wafer
production to specialist foundries such as IQE in order to reduce overall wafer
costs and accelerate time to market. IQE is unique in being able to supply
wafers using all of the leading crystal growth technology platforms including
Metal Organic Vapour Phase Epitaxy (MOVPE) and Molecular Beam Epitaxy (MBE) and
the Group is able to leverage its global purchasing volumes to reduce the cost
of raw materials.

IQE also provides bespoke R&D services to deliver customized materials for
specific applications and offers specialist technical staff to manufacture to
specification either at its own facilities or on the customer's own sites. This
is backed by a strategy of duplicating each key product processes over multiple
sites to assure customers of security of supply as well as provide compelling
customer benefits in terms of flexibility and predictability of cost, thereby
significantly reducing operating risk.

IQE operates six manufacturing facilities; two in Cardiff and one in Milton
Keynes in the UK; two more in Bethlehem, Pennsylvania and Somerset, New Jersey
in the USA; and its most recent acquisition in Singapore. The Group also has 11
sales offices located in major economic centres worldwide.






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