Well, the new update from Epic UDK is out and it comes with iOS support.

Build levels, visually script gameplay events and add visual effects for mobile applications using the Unreal Editor and its major tools, including Unreal Kismet, Unreal Cascade and Unreal Matinee.
Superior rendering features for mobile development, including Unreal Lightmass global illumination accelerated by Unreal Swarm distributed computing.
The full source and content for the “Epic Citadel” App, plus an additional castle demo map.

http://forums.epicgames.com/showthread.php?t=754549