Cree Demonstrates New XLamp MC-E LED

Extends Lighting-Class XLamp LED Performance with Multi-Chip Package

DURHAM, N.C. -- Cree, Inc. (Nasdaq: CREE), a market leader in LED lighting, announces that it is demonstrating the newest addition to its industry-leading XLamp® LED family—the XLamp MC-E LED—at LIGHTFAIR International in Las Vegas, N.V., May 28-30, 2008.

The multi-chip XLamp MC-E being demonstrated retains the same 7mm x 9mm footprint as Cree’s existing XLamp XR family LEDs while providing four times the light output of the existing XR-E, the highest lumen output for a package of this size. This powerful combination is designed to enable new applications and reductions in overall system cost compared to other LED packages. At 9.8W, the XLamp MC-E LED being demonstrated provides up to 790 lumens at 6000K and up to 605 lumens at 3000K.

The XLamp MC-E LED is being demonstrated in both cool and warm white at Cree’s LIGHTFAIR International Booth #2635. Visitors to LIGHTFAIR can also see the XLamp MC-E LED applied in indoor and outdoor luminaire demonstrations at the following booths:

* Acuity Brands Lighting, Booth #2301
* KramerLED, Booth #2650
* Light Engine, Booth # 2458

Secondary optics for the Xlamp MC-E LED are also being demonstrated by Carclo, booth #1872, Fraen, booth #2911 and Ledil/Marubeni, booth #1795. The XLamp MC-E LEDs are targeted to be available for purchase next quarter.

“For added design flexibility, our new line of KramerLED luminaires integrates the MC-E LED from Cree in combination with our proprietary NanoOptic refractors,” said Kramer Lighting president Al Ruud. “This combination of technology ensures each LED is used to its fullest potential for unsurpassed control, uniformity, and intensity.”

“Cree’s XLamp MC-E LED is a lighting-class solution designed to enable applications that require high lumen output in a small footprint,” said Norbert Hiller, Cree vice president and general manager for lighting LEDs. “Customers can increase design flexibility and reduce overall system cost over other, lower flux-output LED packages, without compromising on quality.”

For more information about Cree XLamp MC-E LEDs, visit www.cree.com/MCE.

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 retrofit 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.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 risk we may be unable to release commercial products with performance ratings comparable to the demonstration results described above; the possibility we may be unable to manufacture these products with sufficiently low cost to offer them at competitive prices or with acceptable margins; the possibility that actual cost savings may vary from expectations; the potential lack of customer acceptance of the 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.