June 4, 2009

Cree announces Strategic Relationship with RFHIC

DURHAM, N.C. -- Cree, Inc. (Nasdaq: CREE) announced today that it has signed a definitive agreement with RFHIC Corporation (Suwon, Korea) for Cree to supply GaN-on-SiC transistors to RFHIC for their GaN HEMT amplifier product families. In addition, Cree and RFHIC have entered into a market development agreement to facilitate deeper market penetration of GaN HEMT solutions by leveraging Cree’s expertise in GaN transistor production on SiC and its MMIC foundry capability and RFHIC’s leadership position in innovative packaging, amplifier integration and volume assembly capabilities.

“This important relationship is designed to allow both Cree and RFHIC to expand their market presence and accelerate the insertion of GaN HEMT technology into a number of key, volume applications,” said Dr. Cengiz Balkas, vice president and general manager of Cree’s Power and RF business unit.

“The combination of Cree’s and RFHIC’s core strengths can accelerate GaN HEMT market penetration in cellular infrastructure, two-way communication, CATV amplifier, and a variety of other emerging market segments. It provides a wide range of options in hardware integration levels to best address customer needs,” said Jim Milligan, director of RF and microwave products at Cree.

“Cree’s GaN-on-SiC HEMT process is the most mature GaN HEMT process in the market. We initially pursued a GaN-on-Si HEMT approach but converted our product line and future direction to Cree’s GaN-on-SiC HEMT technology based on its superior thermal and electrical characteristics as well as its outstanding robustness and reliability. RFHIC aims to offer cost-effective, GaN HEMT amplifier solutions to the market, and Cree GaN-on-SiC HEMT is the clear winner for our product plans,” commented Dr. Samuel Cho, RFHIC’s chief technology officer.

About Cree
Cree is a market-leading innovator of semiconductor solutions for wireless and power applications, lighting-class LEDs, and LED lighting solutions.

Cree’s product families include power-switching devices and radio-frequency/wireless devices, blue and green LED chips, high-brightness LEDs, lighting-class power LEDs, and LED fixtures and bulbs. Cree solutions are driving improvements in applications such as variable-speed motors, wireless communications, general illumination, backlighting and electronic signs and signals.

For additional product and company information, please refer to www.cree.com

This press release contains forward-looking statements involving risks and uncertainties, both known and unknown, that may cause actual results to differ materially from those indicated. Actual results may differ materially due to a number of factors, such as the possibility we may be unable to manufacture the volume of products required to fulfill demand in a timely manner due to technological or manufacturing difficulties; the risk that RFHIC’s demand for our products may decrease; the rapid development of new technology and competing products that may impair demand or render our products obsolete; the potential lack of customer acceptance for the products; and other factors discussed in Cree’s filings with the Securities and Exchange Commission, including its report on Form 10-K for the year ended June 29, 2008, and subsequent filings.