IQE records $20 million order book at New Jersey facility

These record orders follow the announcement on 26 June 2008 of an approximate US $20 million multi-year contract extension as sole supplier of GaAs based pHEMT epi-wafers to a major US wireless component manufacturer at the Group's Bethlehem business unit. Both of these orders are in line with the Board's expectations for the current financial year.

The New Jersey orders come at a time when IQE is increasing production capacity, particularly in terms of its MOCVD capability for wireless products manufactured at its Somerset, Cardiff and Bethlehem facilities. Overall, MOCVD production capacity is planned to grow by more than 50% by the end of 2008 compared with 2007, in order to meet the increasing demand. Primary drivers for this growth are components for 3G and other high speed wireless applications such as WiFi 802.11n and WiMAX.

Alex Cerruzzi, GM and VP of IQE-RF in Somerset commented;

"We are strongly focused on delivering a highly cost effective service to our customers, using leading edge epitaxial growth technology and are very pleased to have won these orders. Currently, our order book is the largest in our history. As a result of the growing demand for our products, we continue to bring on line further capacity to meet the needs of our customers."

Dr Drew Nelson, President and Group CEO said:

"Global demand for our products for wireless devices continues to go from strength to strength. Coming on top of our recent announcement of a large contract extension for products manufactured by MBE tools at our Bethlehem, PA facility; this increase clearly demonstrates the continuing high market growth for high-end wireless mobile components and the strength of our business model."

Customers are strongly attracted to the unique benefits that the IQE Group can offer, including; multi-site manufacturing on a global basis using the latest volume manufacturing epitaxial tools, including both MBE and MOCVD technologies; a complete product range offering true one stop shop capabilities; advanced R&D for rapid new product development; and a truly global support network.

All this adds up to a highly cost effective epi solution for our customers, who are increasingly making use of these advantages to rapidly grow their own businesses."

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