Issue of Equity

10 Aug 2006 10:09

IQE PLC10 August 2006 IQE plc 10 August 2006 IQE plc (the "Company" or "IQE") Placing IQE, the leading global outsource supplier of customised wafer products andoutsource wafer services to the semiconductor industry, is pleased to announcethat it has conditionally raised approximately £12 million (before expenses)through a placing of 87,500,000 new ordinary shares at 13.75p per share ("NewOrdinary Shares") (the "Placing"). The proceeds of the Placing will be utilised for working capital and to acquireElectronic Materials Division, the US epi foundry business from EMCORECorporation Inc. (NASDAQ listed: EMKR) for a total consideration of $16 million. The Placing is conditional upon the passing of a resolution ("Placing Resolution") by the Company's shareholders at an extraordinary general meeting (''EGM'')to authorise the allotment of the New Ordinary Shares and to disapplypre-emption rights to enable the directors of IQE (the "Directors") to allot theNew Ordinary Shares for cash to persons other than current shareholders in theCompany. The Directors have convened the EGM at which shareholders will be askedto consider and, if thought fit, pass the Placing Resolution and certain otherresolutions. The Placing is also conditional, inter alia, on admission (''Admission'') of the New Ordinary Shares to trading on AIM, a market operated byLondon Stock Exchange plc (the ''London Stock Exchange'') ("AIM") (which is themarket on which the Company's existing issued ordinary shares are admitted totrading) occurring by no later than 31 August 2006. The New Ordinary Shares areequivalent to approximately 21.6 per cent. of the Company's enlarged ordinaryshare capital following Admission and the Placing Price represents a discount ofapproximately 6.8 per cent. to the closing mid-market price of an existingissued ordinary share of 14.75 p on 19 July 2006, the latest practicable dateprior to the posting of the Notice of Extraordinary General Meeting . Application has been made for the admission of the New Ordinary Shares totrading on AIM. The shares will rank pari passu with the existing ordinaryshares of the Company. Dealings in the New Ordinary Shares are expected tocommence on 16 August 2006. Contacts IQE plc +44(0) 29 2083 9400Dr Drew Nelson, President & CEOStuart Hall, CFOChris Meadows, Investor Relations Noble & Company Limited +44(0) 20 7763 2200John Llewellyn-LloydGraeme Bayley This information is provided by RNS The company news service from the London Stock Exchange