LED Chips are energy efficient.

Press Release Summary:

MegaBright® 290 Gen 2 is 30% brighter and uses 8% less power than chip it replaces. It is targeted for digital camera, camera phone flash, and LCD backlighting applications where brightness and power efficiency are critical. RazerThin® 230 uses 8% less energy than previous generation device and is suited for keypad backlighting applications where battery life is important.

Original Press Release:

Cree Introduces Two New LED Chips

DURHAM, NC, - JUNE 9, 2005 - Cree, Inc. (Nasdaq: CREE), today announced the release of two new LED chips: the MegaBright® 290 Gen 2 and the RazerThin® 230. The MegaBright 290 Gen 2, a high brightness chip, is 30 percent brighter and uses 8 percent less power than the chip it replaces. This new chip is targeted for digital camera, camera phone flash, and LCD backlighting applications, where brightness and power efficiency are critical considerations. The new RazerThin 230, a low power chip, uses approximately 8 percent less energy than the
previous generation device and is targeted for keypad backlighting applications, where the most important design considerations are extended battery life and low cost.

"Cree is continually advancing its LED chip technology based on the needs of our customers. Higher brightness and lower power consumption are the driving requirements of the LED chip
industry and the MegaBright 290 Gen 2 chip demonstrates a convergence of both features," states Scott Schwab, Cree vice president and general manager of optoelectronics. "Additionally,
LEDs that use less power can dramatically increase battery life, or in the case of mobile phones, enable new features, both of which make the RazerThin 230 chip especially attractive."

Production volumes of the MegaBright 290 Gen 2 and RazerThin 230 chips are currently shipping. Additional information about the two new LED products can be found by visiting our website at www.cree.com or by calling 919-313-5300.

About Cree, Inc.
Cree is an advanced semiconductor company that leverages its expertise in silicon carbide (SiC) and gallium nitride (GaN) materials technology to produce new and enabling semiconductors.
The products include blue and green light emitting diodes (LEDs), packaged LEDs, power switching devices and radio frequency (RF) and microwave devices. The company is currently
developing near ultraviolet lasers. Targeted applications for the company's products include solid-state illumination, power switching, wireless infrastructure and optical storage. Cree
understands the important convergence of science, technology and creativity, placing high value on ideas, as well as the energy and ability of its people. For more information on Cree, please visit www.cree.com.

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