IQE PLC
07 April 2008


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

                              DIRECTORS' DEALINGS


IQE was notified on 4 April 2008 that Dr Andrew Nelson, Chief Executive of IQE
plc, transferred 20 million ordinary shares of IQE on 04 April 2008 from a trust
named the Andrew Nelson Interest in Possession Trust into his own name. This
change puts into effect personal tax planning measures and is as a consequence
of the changes in UK Capital Gains Tax implemented on 6 April 2008.

Following this transfer Dr Nelson's sole beneficial interest in ordinary shares
of IQE, including the Andrew Nelson Interest in Possession Trust, remains
unchanged at 27,391,303 shares representing 6.4% 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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