I had the same issue. At our company we need to import huge xls(x) files to our database. We have been using PEAR Spreadsheet Excel Reader, but it is no longer supported and we encountered many bugs with newer files, so we have tried to switch to PHPExcel.
Unfortunatelly we did not manage to overcome the memory limit issue. And we spent a lof of time trying to.
There is no way you can load 100K rows with columns up to 'BB' with PHPExcel.
It is just not right tool for the job. The PHP Excel builds the whole spreadsheet in the memory as objects. There is no way around this.
What you need is a tool that can read the file row by row, cell by cell.
Our solution was to use Java and Apache POI classes with event model - which does read only operations but is very memory and cpu efficient.
If you only need to support the xml based "Office Open XML" formats (xlsx) and not the old OLE based, then you can process it as XML for your own. The format is not so much complicated if you get into it. Just unzip a file and look at the xmls. You have one file with is string table, and one file with rows and cells per each sheet.
You should parse the string table first, and then the sheet data with xml reader (not the DOM).
As far as I know, there is no PHP library that can import large excel files out of the box as of October 2013.
Good luck.