CREE UNVEILS 100-MM ZERO-MICROPIPE SIC SUBSTRATE.

Cree, Inc., (NASDAQ:CREE), Durham, N.C., has achieved another milestone in the development of silicon carbide (SiC) technology with the demonstration of 100-mm (4-inch), Zero-Micropipe (ZMP(TM)), n-type SiC substrates.

Micropipes, common crystalline defects in SiC, can not only decrease the number of usable electronic devices produced per wafer, but can also affect performance parameters of each device produced. Until now, these defects have been present in nearly all SiC wafers manufactured and sold by commercial substrate vendors. Through previous research and development efforts at Cree, partially funded by the U.S. Army and DARPA, the density of these defects has been dramatically reduced. Cree's current accomplishment demonstrates that it is possible to eliminate these defects in large-area wafers as well.

"Cree's achievement of a 100-mm ZMP substrate further demonstrates our materials technology expertise. We expect that ZMP technology can significantly improve device yields, expand the range of products that can be designed and produced, and enable manufacturing at higher-volume levels than had been possible before," states Cengiz Balkas, Ph.D., Cree vice president and general manager for materials.

SiC is a high-performance semiconductor material used in the production of a broad range of power, light and communications components, including power- switching devices, light-emitting diodes (LEDs) and RF power transistors for wireless communications.

Additional information about SiC materials can be obtained by calling Cree at 919-313-5300 or visiting 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 SiC and 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-fixtures 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 more information, visit http://www.cree.com or call 919/313-5397