Cree Announces Major LED Advances at Strategies in Light

February 8, 2005... BURLINGAME, California USA -- Cree, Inc. (Nasdaq: CREE), a market leader in LED solid-state lighting components, today announced at the Strategies in light industry conference development results that are likely to speed The adoption of LED technology into major lighting applications. The results were:

* 100 lumens per watt and 50 percent wall-plug efficiency from standard 5 mm LEDs.

* Maximum luminous flux of 60 lumens from its 7090 series white XLamp(TM) power LEDs operating at 350 mA.

We are demonstrating significant levels of brightness and efficiencies from both standard and power LEDs. White LEDs are on a critical path toward significant reducing energy costs for lighting throughout the world. Advancing toward replacing the light bulb at a more rapid pace than just a few years ago, stated Chris James, Cree Lighting marketing manager.

About Cree, Inc.

The product includes blue and green light emitting diodes (LEDs), radio frequency (RF) and Microwave devices, and power switching devices. Also under development are near ultraviolet lasers. Cree understands the important convergence of science, technology and creativity, placing high value on ideas, as well as the energy and ability of its people. Included in the data sheets on Crees website at http:// .

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 develop commercial products with performance ratings comparable to the development results discussed in the release; the potential lack of customer acceptance even if such products are developed; the possibility we may be unable to manufacture such products with e low cost to offer them at competitive prices Or with acceptable margins; the rapid development of new technology and competing products that may impair requirements for such products; and other factors discussed in Crees filings with the Securities and Exchange Commission, including its report on Form 10-K for the year ended June 27 , 2004 and subsequent filings.

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