Cree Launches EZBright(TM) LED Power Chip for Lighting Applications

DURHAM, N.C., Aug. 31, 2006 -- Cree, Inc. , a leader in LED solid-state lighting components, today announced the release of its new EZBright(TM) LED power chip. The new EZBright1000(TM) LEDs are twice the brightness of Cree's current power chips. The EZBright1000 power chip is designed for general lighting applications, such as home and office lighting, auto headlamps, streetlights, and garage and warehouse low bay lighting, as well as consumer applications including flashlights, camera flash and projection displays.

"This is an important milestone for power LEDs. For the first time, these chips should enable solid-state lamp makers to challenge the efficacy of not only incandescent, but also fluorescent lamps," said Chuck Swoboda, Cree chairman and CEO. "The EZBright1000 LED power chip is one of several advancements we are working on to help drive LEDs into more mainstream lighting applications."

"The blue EZBright1000 power chip, measured as a bare die, exhibits power output up to 370mW at 350mA of drive current and 800mW at 1A of drive current," stated Scott Schwab, Cree vice president and general manager of optoelectronics. "This product should enable our customers to reach new levels of power output and efficiency from a single chip and redefine what is possible with power LEDs."

The EZBright1000 power chip is the third product released based on the Cree EZBright platform, which features a proprietary optical design that delivers an optimal Lambertian radiation pattern, with low emission losses and high efficiency. This product incorporates technology that was in part developed with support provided by the U.S. Department of Energy, National Energy Technology Laboratory, and the U.S. Department of Commerce, National Institute of Standards and Technology, Advanced Technology Program.

EZBright1000 LEDs are now available in commercial quantities. Additional EZBright products are targeted for release over the next several months. For additional information on Cree EZBright LEDs, please call (800) 533-2583 or visit www.cree.com .

About Cree, Inc.

Cree is a market-leading innovator and manufacturer of semiconductors and devices that enhance the value of solid-state lighting, power and communications products by significantly increasing their energy performance and efficiency. Key to Cree's market advantage is its world-class materials expertise in silicon carbide (SiC) and gallium nitride (GaN) for chips and packaged devices that can handle more power in a smaller space while producing less heat than other available technologies, materials and products.

Cree drives its increased performance technology into multiple applications, including exciting alternatives in brighter and more-tunable light for general illumination, backlighting for more-vivid displays, optimized power management for high-current switch-mode power supplies and variable-speed motors, and more-effective wireless infrastructure for data and voice communications. Cree customers range from innovative lighting-fixture makers to defense-related federal agencies.

Cree's product families include blue and green LED chips, lighting LEDs, LED backlighting solutions, power-switching devices and radio- frequency/wireless devices. For additional product specifications 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 encounter delays or other difficulties in ramping up production of our new products; the risk we may be unable to manufacture products with sufficiently low cost to offer them at competitive prices or with acceptable margins, the rapid development of new technology and competing products that may impair demand or render our products obsolete; the potential lack of customer acceptance for the products; variations in demand for Cree's products and its customers' products; the risk we may encounter delays or other difficulties in developing and commercially releasing additional new products for mainstream lighting applications; 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 25, 2006, and subsequent filings.

Cree is a registered trademark and EZBright and EZBright1000 are trademarks of Cree, Inc.