Cree Announces Performance and Packaging Breakthroughs for New Broadband GaN HEMTs.

DURHAM, N.C. -- Cree, Inc. (Nasdaq: CREE) today announced sample availability of breakthrough, high-performance GaN HEMT devices for broadband applications. The CGH40025 delivers outstanding power, gain and efficiency required for very broad bandwidths. Cree will showcase the device at their booth #631 at the IEEE MTT-S International Microwave Symposium 2007 being held June 3-8 in Honolulu, Hawaii.

The CGH40025, a general-purpose transistor for applications covering DC to 6 GHz, typically produces 30-W RF output power at 55-percent drain efficiency with 14 dB of gain when used in a 3.6-GHz amplifier. Remarkably, the device features the industry's smallest reported package footprint (0.15" x 0.54" or 0.15" x 0.2") for a 25-W transistor.

"The CGH40025F is a significant new addition to our general-purpose GaN HEMT product line. It is targeted for numerous applications requiring broad instantaneous bandwidth and high power where amplifier form factor and weight are critical," explained Jim Milligan, Cree business area manager for RF products.

Also in their booth, Cree will demonstrate a broadband power amplifier producing an extraordinary 15 dB of gain, 50-W saturated output power (PSAT) and 45-percent drain efficiency over an instantaneous bandwidth of 500 MHz to 2.0 GHz. This new level of performance, based on Cree's CGH40045F part, is ideal for electromagnetic compatibility (EMC) and reconfigurable base-station applications.

Additional information about the Cree products may be obtained by calling Cree at 919-287-7505 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 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 sample products which are currently available for evaluation and testing purposes only; the risk we may be unable to develop and release commercial products with performance ratings comparable to the development results described above; 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; 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 of Cree, Inc.