Profit Forecast Directors' Confirmations

IQE plc's ("IQE") trading update, as contained in the same announcement commencing IQE's offer period on 8 September 2025, contained the following statement in respect of the financial year ending 31 December 2025 which, for the purposes of Rule 28.1(c) of the City Code on Takeovers and Mergers (the "Code"), constitutes a profit forecast (the "IQE Profit Forecast"):

• Revenue for FY 2025 is expected to be between £90.0m to £100.0m, resulting in an adjusted EBITDA position of between £(5.0)m to £2.0m.
• H1 2025 revenue is expected to be at least £44.0m with an £(0.4)m adjusted LBITDA.

The IQE Profit Forecast constitutes an ordinary course profit forecast for the purposes of Note 2(a) on Rule 28.1 of the Code. Accordingly, the appendix to this announcement contains the IQE directors' confirmations required pursuant to Rule 28.1(c) of the Code.

White & Case LLP is acting as legal adviser to IQE.

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DISTRIBUTION

APPENDIX

Directors' confirmation

The directors of IQE confirm that, as at the date of this announcement, the IQE Profit Forecast remains valid and that it has been properly compiled on the basis of the assumptions set out below and that the basis of accounting used is consistent with IQE's existing accounting policies.

Basis of preparation

The IQE Profit Forecast is based on IQE's current internal unaudited consolidated accounts for the 7-month period ended 31 July 2025 and IQE's current internal unaudited forecasts for the remainder of the financial year ending 31 December 2025. The IQE Profit Forecast has been compiled on the basis of the assumptions set out below.

The basis of the accounting policies used in the IQE Profit Forecast is consistent with the existing accounting policies of the IQE group.

Assumptions

The IQE Profit Forecast has been prepared on the basis referred to above and subject to the principal assumptions set out below. The IQE Profit Forecast is inherently uncertain and there can be no guarantee that any of the assumptions listed below will occur and/or if they do, their effect on IQE's results of operations, financial condition or financial performance may be material. The IQE Profit Forecast should be read in this context and construed accordingly.

The directors of IQE have made the following assumptions in respect of the financial year ending 31 December 2025:

Assumptions within IQE's control or influence:

• no material change to the existing strategy or operation of IQE's business, including the business or operating model;
• no material adverse change to IQE's ability to meet customer, supplier and partner needs and expectations based on current practice;
• no material unplanned asset disposals, merger and acquisition or divestment activity conducted by or affecting the IQE group;
• no material change to the present management of the IQE group; and
• no material change in capital allocation policies of the IQE group.

Assumptions outside of IQE's control or influence

• no material effect from changes to existing prevailing macroeconomic, fiscal / inflationary conditions in the markets or regions in which the IQE group operates;
• no material adverse change to IQE's market environment, including in relation to consumer demand or competitive environment;
• no material adverse events that have a significant impact on IQE's major partners or suppliers;
• no material changes of the value of pound sterling above the average foreign exchange rates that have applied during the 7-month period ended 31 July 2025;
• no material adverse events that would have a significant impact on the IQE group, including (but not limited to) information technology/cyber infrastructure;
• no material new litigation or regulatory investigations, and no material unexpected developments in any existing litigation or regulatory investigation, each in relation to any of IQE's operations, products or services; and
• no material change in legislation, taxation or regulatory requirements impacting IQE's operations, expenditure or its accounting policies.