RNS Number:0032U
IQE PLC
08 January 2004



                               IQE plc ("Company")

                               Holding in Company

The Company was informed today by Scottish Widows Investment Partnership Ltd on
behalf of Lloyds TSB Group and its subsidiary companies, that they are
interested in 17,027,523 ordinary shares of 1 pence each in the Company
("Ordinary Shares"), which represents 5.404 per cent of the Company. Of this
interest 10,908,671 Ordinary Shares are material interests, which represents
3.462 per cent of the current issued share capital.

8 January 2004



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