Cree Announces Volume Shipments of LR4 Recessed LED Down Lights

DURHAM, N.C. -- Cree, Inc. (Nasdaq: CREE), a market leader in LED lighting, announces volume shipments in May of the LR4, a four-inch architectural recessed LED down light for new construction and renovation projects. The LR4 has been specified in a number of significant projects, including corporate campuses, full-service hotels, and global restaurant chains.

“The eco-friendly LR4 lighting system helps create a warm and comfortable environment for our guests while reducing our energy and maintenance cost,” said Steve Eckley, VP of Operations at Amerimar, Inc., developer of the Hutton Hotel in Nashville, TN, an early LR4 installation.

The LR4 delivers up to 540 lumens of high-quality light from less than 11 watts of power and features:

* A color rendering index (CRI) of up to 94,
* Two available color temperatures, warm white (2,700K) and neutral (3,500K)
* Two available shield angles, 15º and 30º, and
* Dimmable design, including compatibility with Lutron Electronics products.

These features provide an exceptional lighting experience, enhancing the appearance of room surfaces, furnishings and merchandise. The LR4 also provides a wide range of application flexibility allowing designers to precisely deliver light to surfaces within the visual environment.

“Cree has demonstrated the LR4 to hundreds of customers throughout the world and the feedback has been exceptionally strong,” said Neal Hunter, president, Cree LED Lighting Solutions. “Customers praise the beautiful color common to all Cree Lighting products and emphasize its architectural appeal, including the high-quality finishes and materials, soft and uniform appearance, and effective light distribution.”

Cree is demonstrating its full portfolio of LED Lighting Solutions products at LIGHTFAIR International in Las Vegas, NV, May 28-30, 2008. Visitors to LIGHTFAIR can visit booths #1981 and #2635 to experience environments illuminated by Cree’s:

* LR4, four-inch recessed LED down light
* LR6, six-inch recessed LED down light
* LR24, two-foot by two-foot architectural luminaire

About Cree
Cree is leading the LED lighting revolution and setting the stage to obsolete the incandescent light bulb through the use of energy-efficient, environmentally friendly LED lighting. Cree is a market-leading innovator of lighting-class LEDs, LED lighting solutions, and semiconductor solutions for backlighting, wireless and power applications.

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

For additional product and company information, please refer to www.CreeLLS.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, including the risk that construction specifications may not result in actual orders; the possibility that actual energy saving may vary from expectations; the potential lack of customer acceptance of LED products; the rapid development of new technology and competing products that may impair demand or render Cree’s products obsolete; 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 24, 2007, and subsequent filings.