Nanometer-sized particles of lead iodide layered semiconductors were embbeded in SiO2 films. X-ray diffraction and photoluminescence (PL) spectroscopy showed the preservation of the hulk layered structure and symmetry. The PL and PL excitation (PLE) spectroscopy exhibited a blue-shift due to quantum size effect. The bulk lead iodide showed exciton transition with an exceptionally small Bohr radius (a(B) = 19 Angstrom) and a large Rydberg constant (R = 70.8 meV). In addition, the lead iodide represents a special case in which m(e) >> m(h). The prepared samples contained particles with mean radii, a, in-the range a(B) < a < 3a(B). In this limit (with m(e) >> m(h)) the experimental results are in agreement with a model in which the electron is localized nearly at the center of the particle, enabling the hole to move around it. According to this model, the localization of the electron is further enhanced due to the confinement of the hole motion by the particle boundaries; Thus, the size confinement permits the creation of an acceptor-like exciton. The simulated blue-shift of this acceptor-like exciton has been determined, utilizing a variational method. The PL spectrum revealed additional states, associated with stoichiometric and structural defects. These defects were created during the growth process.