An algebra homomorphism psi from the q-deformed algebra U-q(iso(2)) with ge
nerating elements I, T-1, T-2 and defining relations [I, T-2](q) = T-1, [T-
1, I](q) = T-2, [T-2, T-1](q) = 0 (where [A, B](q) = q(1/2)AB-q(-1/2)BA) to
the extension (U) over cap(q)(m(2)) of the Hopf algebra U-q(m(2)) is const
ructed. The algebra U-q(iso(2)) at q = 1 leads to the Lie algebra iso(2) si
milar to m(2) of the group ISO(2) of motions of the Euclidean plane. The Ho
pf algebra U-q(m(2)) (which is not isomorphic to U-q(iso(2))) is treated as
a Hopf q-deformation of the universal enveloping algebra of iso(2) and is
well known in the literature.
Not all irreducible representations of U-q(m(2)) can be extended to represe
ntations of the extension (U) over cap(q)(m(2)). Composing the homomorphism
psi with irreducible representations of (U) over cap(q)(m(2)) we obtain re
presentations of U-q(iso(2)). Not all of these representations of U-q(iso(2
)) are irreducible. The reducible representations of U-q(iso(2)) are decomp
osed into irreducible components. In this way we obtain all irreducible rep
resentations of U-q(iso(2)) when q is not a root of unity. A part of these
representations turns into irreducible representations of the Lie algebra i
so(2) when q --> 1. Representations of the other part have no classical ana
logue.