New Cree XSP Series LED Street Lights Shatter Performance and Payback Barriers for Municipalities

Revolutionary LED Street Lights Leverage Innovative Technologies to Further Obsolete Inefficient Predecessors

DURHAM, N.C. -- Cree, Inc. (Nasdaq: CREE) announces a breakthrough innovation in street lighting with the introduction of the XSP Series LED Street Light – the most affordable and efficient Cree® LED street light designed to speed payback to municipalities. Using nearly 50 percent less energy and designed to last over three times longer than wasteful, traditional high-pressure sodium street lighting, the XSP Series can double the lumens per dollar compared to previous generations of Cree LED street lights and is the ideal choice for cities and municipalities looking to save money and resources.XSP LED Street Light

“Cree XSP Series LED Street Lights can help municipalities address budget constraints and provide the best of all worlds – outdoor lighting that lowers energy expenses and reduces maintenance costs,” said Jeff Tews, acting director of street lighting, city of Anchorage. “Anchorage has already made the business case work for LED street lighting with more than 5,000 Cree LEDway® luminaires installed across the city. The new XSP Series LED Street Lights should make every municipality take notice.”

Breakthrough engineering improves optical efficiency 15 percent compared to previous generations of LED street lights and reduces the number of LEDs used by more than half without sacrificing application performance – fewer LEDs enable lower luminaire costs and faster payback for customers. NanoOptic® Precision Delivery Gridoptic technology efficiently delivers light to the street making communities appear cleaner and safer.

Based on Cree’s advanced LED technology, the new XSP Series was designed from the ground up to deliver incredible system efficiency of up to 100 lumens per watt and is designed to provide long L70 lifetime of more than 100,000 hours. The breakthrough street light delivers municipalities up to twice the lumens per dollar compared to previous generations and can pay for itself the first time a city avoids sending a crew and truck to replace a bulb.

“Cree XSP Series is a giant leap forward in outdoor lighting and is made possible by innovation in every aspect of the product,” said Christopher Ruud, vice president and general manager, Cree lighting. “Capitalizing on innovations in Cree LED chips and components, optic technology and design, and overall luminaire design, the XSP Series exemplifies the best of Cree integrated technology. The result is the best alternative to traditional street lighting with better payback, better performance, and better pricing, allowing municipalities to focus their resources where it matters most.”

The Cree XSP Series LED Street Light is sold through Cree lighting sales channels with select versions targeted for availability in May 2012. For more information on Cree XSP Series LED Street Light visit www.cree.com/XSP, and to learn how Cree is accelerating LED lighting adoption, visit www.creeledrevolution.com.

About Cree

Cree is leading the LED lighting revolution and making energy-wasting traditional lighting technologies obsolete through the use of energy-efficient, mercury-free LED lighting. Cree is a market-leading innovator of lighting-class LEDs, LED lighting, and semiconductor products for power and radio-frequency (RF) 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 RF devices. Cree products are driving improvements in applications such as general illumination, electronic signs and signals, power supplies and solar inverters.

For additional product and company information, please refer to www.CreeLEDLighting.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 that we may be unable to manufacture these new products with sufficiently low cost to offer them at competitive prices or with acceptable margins; the risk we may encounter delays or other difficulties in ramping up production of our new products; the risk that actual savings will vary from expectations, 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 26, 2011, and subsequent filings.

Cree®, LEDway® and NanoOptic® are registered trademarks and Precision Delivery Grid is a trademark of Cree, Inc. or one of its subsidiaries.