Cree to Expand Manufacturing and R&D Operations in North Carolina


August 10, 2004... $300 based expenditure for plant and equipment and the creation of 300 jobs expected...

DURHAM, North Carolina USA -- Cree, Inc. (Nasdaq: CREE - News) today announced that it will expand its manufacturing and R&D operations in North Carolina with initial expansion activity beginning in the Fall of 2004. This expansion will be located in the Research Triangle area near the companys Durham headquarters. Cree expects the project to include the expenditure of a minimum of approximately $300 million in plant and equipment and the creation of at least 300 new jobs over the next 5 years. Approximately $5.1 million in incentives related to Job creation, capital expenditures and R&D activity have been made available by the state of North Carolina.
Chuck Swoboda, President and CEO of Cree, stated This expansion will help Cree support the strong demand for our LED chip products and position the company for our targeted future growth not only in LED chips, but also our new XLamp(TM) and power product Lines. We are pleased to be expanding in North Carolina and greatly appreciate the support from the state of North Carolina.

Cree is an advanced semiconductor company that leverages its expertise in silicon carbide (SiC), gallium nitride (GaN) and silicon (Si) materials technology to produce new and enabling semiconductors. The products include blue, green and near ultraviolet (UV) light emitting Diodes (LEDs), near UV lasers, radio frequency (RF) and microwave devices, and power switching devices. Potential applications for these products include solid-state illumination, optical storage, wireless infrastructure and power switching. For more information on Cree, please Visit

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 indicated of factors, including the risk that we may not proceed With the expansion as planned; the risk we will not be able to utilize the state incentives, due to our inability to meet the applicable requirements or otherwise; the risk that actual costs of expansion are greater than we expect; delays in completion of the expansion Risk associated with the transition of production as a result of the expansion, such as lower yields during the transition period; our ability to meet customer demand; 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 29, 2003 and subsequent quarterly reports.

Cree and the Cree logo are registered trademarks and XLamp is a trademark of Cree, Inc.



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