IQE Regulatory News (IQE)

25 Jan 2008 07:00

IQE PLC25 January 2008 25 January 2008 IQE plc Significantly increased bank facilities agreed with Lloyds TSB demonstrateconfidence in IQE's growth prospects IQE plc (AIM: IQE, "the Group"), the leading global supplier of advanced waferproducts and services to the semiconductor industry, is pleased to announce thatit has appointed Lloyds TSB Corporate Markets as its principal banker and hasagreed new, significantly increased banking facilities to support IQE'scontinued growth. The new facilities provide funding of up to £15.5 million in the form of a termloan of up to £8.5 million and a working capital facility of up to £7 million.This replaces existing UK loans of £3.7 million and a UK overdraft facility of£4 million, representing additional headroom of almost £8 million to financegrowth and working capital. In addition, the Group retains its overseas working capital facility of £1million. Phil Rasmussen, IQE Chief Financial Officer, said "The appointment of Lloyds TSB Corporate Markets follows a rigorous assessmentof several of the major UK banks to ensure that we have the right partnership aswe continue to grow rapidly. We have selected Lloyds TSB Corporate Markets onthe basis that its Fast Growth Team has demonstrated an excellent understandingof the needs of a dynamic and rapidly growing business like IQE. Furthermore,given current macro economic conditions, this new funding facility demonstratesthe confidence that exists in IQE's business model, its markets and itsmanagement team." Andrew Hunter from Lloyds TSB's Fast Growth Team commented: "We are delighted to support IQE through this key stage in its development. Weview IQE as a high performing business that has established an enviable positionwithin the international compound semiconductor wafer market. The Lloyds TSBFast Growth team worked closely with colleagues across Lloyds TSB CorporateMarkets to provide a flexible funding solution, enabling IQE to take advantageof opportunities for growth." Jason Evans, Area Director and Head of Lloyds TSB Corporate Markets for SouthWales, added: "Through careful acquisition, the management of IQE has established a marketleading business which is very well placed for continued growth. We aredelighted to assist such a dynamic and high profile quoted company with a globalHQ based in South Wales". For further information contact IQE plc:Phillip Rasmussen, Chief Finance Officer +44 (0)29 2083 9400Chris Meadows, Investor Relations Executive Noble: +44 (0)20 7763 2200John Llewellyn-Lloyd/Andy YeoPanmure Gordon +44 (0)20 7459 3600Aubrey Powell/Ashton Clanfield College Hill:Adrian Duffield/Ben Way +44 (0)20 7457 2020 NOTE TO EDITORS IQE is the leading global supplier of advanced semiconductor wafers withproducts that cover a diverse range of applications, supported by an innovativeoutsourced foundry services portfolio that allows the Group to provide a 'onestop shop' for the wafer needs of the world's leading semiconductormanufacturers. IQE uses advanced crystal growth technology (epitaxy) to manufacture and supplybespoke semiconductor wafers ('epi-wafers') to the major chip manufacturingcompanies, who then use these wafers to make the chips which form the keycomponents of virtually all high technology systems. IQE is unique in being ableto supply wafers using all of the leading crystal growth technology platforms. IQE's products are found in many leading-edge consumer, communication, computingand industrial applications, including a complete range of wafer products forthe wireless industry, such as mobile handsets and wireless infrastructure,Wi-Fi, WiMAX, base stations, GPS, and satellite communications; opticalcommunications, optical storage (CD, DVD), laser optical mouse, laser printers &photocopiers, thermal imagers, leading-edge medical products, barcode, highefficiency LEDs and a variety of advanced silicon based systems. The manufacturers of these chips are increasingly seeking to outsource waferproduction to specialist foundries such as IQE in order to reduce overall wafercosts and accelerate time to market. IQE also provides bespoke R&D services to deliver customised materials forspecific applications and offers specialist technical staff to manufacture tospecification either at its own facilities or on the customer's own sites. TheGroup is also able to leverage its global purchasing volumes to reduce the costof raw materials. In this way IQE's outsourced services, provide compellingbenefits in terms of flexibility and predictability of cost, therebysignificantly reducing operating risk. IQE operates six manufacturing facilities located in Cardiff (two) and MiltonKeynes in the UK; in Bethlehem, Pennsylvania and Somerset, New Jersey in theUSA; and Singapore. The Group also has 11 sales offices located in majoreconomic centres worldwide. This information is provided by RNS The company news service from the London Stock Exchange