Cree to Produce Next-Generation LED Wafers with New Manufacturing Capability

New Production Line Will Enable Larger LED Wafers, Increasing Output and Production Efficiency

DURHAM, N.C. -- Cree, Inc. (Nasdaq: CREE) continues to lead the LED Lighting Revolution with the announcement of a new 150-mm LED wafer production facility in Research Triangle Park (RTP) that is targeted to create hundreds of green jobs in North Carolina. The new LED wafer production line will be located in Cree’s existing RTP production facility, and will allow Cree to produce 150-mm LED wafers that are more than double the size of current ones, increasing the number of LEDs from a single wafer, helping to make LED lighting more cost-effective. The new production line is scheduled to be installed over the next several quarters with a target of having the first products qualified on this line by June 2011.

Energy-efficient LED lighting is being installed in more places, in more countries every day. Companies, cities, universities and the federal government are saving energy and money by joining the LED Lighting Revolution. To keep pace with the growing market for energy-efficient LED lighting, Cree has added more than 600 jobs since early 2009, surpassing the company’s 2012 hiring goals set last fall. Cree anticipates hiring nearly 250 more employees by 2013 to staff the new wafer production line expansion.

“150-mm LED wafers are an important step in enabling the next phase of LED lighting,” said Cree CEO and Chairman, Chuck Swoboda. “These new larger wafers are the result of Cree’s relentless focus on innovation, demonstrating our commitment to leading the LED Lighting Revolution.”

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, and semiconductor solutions for wireless and power applications.

Cree’s product families include LED fixtures and bulbs, blue and green LED chips, high-brightness LEDs, lighting-class power LEDs, 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. To learn more about the LED Lighting Revolution, please visit www.creeledrevolution.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 we may encounter delays or other difficulties in ramping up production of our new 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 27, 2010, and subsequent filings.