Cree Licenses COTCO Under White LED Patent.

HONG KONG -- Agreement Clears the Way for Increased Adoption of White LEDs;

COTCO Expected to See Surge in Worldwide Business from China as a Result

Clearing the way for the increased adoption of white light emitting diodes (LEDs), COTCO International, a pioneer in the development and delivery of LED products for over 10 years, announced today that U.S.-based Cree, Inc. (Nasdaq: CREE), a leader in solid-state lighting technology, has licensed COTCO to manufacture white LEDs under Cree's white LED patent, U.S. Patent No. 6,600,175. The license agreement authorizes COTCO to practice the licensed patent using Cree-supplied dice, removing a barrier to the acquisition of these increasingly popular LED products.

The white LED -- considered to be the leading contender in solid state lighting technology - is expected to eventually replace the traditional light bulb and be used more commonly in white lighting situations. This license enables buyers to acquire COTCO white LEDs that incorporate Cree dice without worrying about infringement of the '175 patent. Since executing this deal, COTCO has already seen a significant increase in white LED sales. It expects to see a continued upswing, especially from manufacturers in China, as world demand increases in line with analysts' expectations.

COTCO is one of the first Asian companies to obtain a license under the '175 patent to use Cree's inGaN nitride LEDs and patented phosphor conversion technology. As a result of the agreement, white LEDs manufactured by COTCO will be labeled with the patent number and will read "Powered by Cree(R)."

"Through this arrangement, Cree and COTCO are taking an important step to bring more white LEDs to the marketplace. The agreement will have an immediate benefit to the increasing number of COTCO customers who want to buy white LEDs but have been understandably nervous about patent infringement," said COTCO General Manager, Richard Sy. "The agreement will reinforce the increasing awareness and respect for intellectual property in the industry, and can enable increased sales of white LED applications to our customers."

White LED has been the focal point of solid state lighting research and development for some time given its promise to eventually replace the traditional light bulb because of the tremendous energy savings and durability associated with LEDs. According to research firm Strategies in Light, white LEDs represent half of the $3.7 billion high brightness LED market. About 75 percent growth was seen in the use of white LEDs for backlighting full-color displays, as well as there being significant growth in keypad backlighting applications using white LEDs. Overall, reports Strategies Unlimited, the high brightness LED market is expected to double in value by 2009, reaching an estimated $7 billion.

According to Dr. Robert Steele, Director of Strategies Unlimited's Optoelectronics Practice in Mountain View, Calif., this deal marks a significant step in the evolution of the LED industry. "This agreement between COTCO and Cree is part of an ongoing movement we see of companies trying to stake out non-infringing, white LED technology," he said. "This deal can be seen as a positive move for both sides who recognize that the white LED is a key element in the current market."

About COTCO International

COTCO International Limited is a world-class quality LED components and products manufacturer that has pioneered the development and delivery of light emitting diodes (LED) products and technology for lamps, modules, displays and other applications since its establishment in 1982. COTCO has extensive experience in the development and manufacturing of High Brightness (HB) LEDs and works with a global network of strategic partners that adhere to the highest standards of trend-setting technology. Based in Hong Kong, COTCO is on of the leading companies in the HB LED industry. It produces a full range of LEDs in the most advanced packages in red, amber, blue, green and white color. COTCO's innovative and versatile engineering team packages them into high quality LED products that cater to the specific needs of customers for an array of applications, including full color video screens, signage, traffic signals, automotive lighting and specialty lighting. COTCO's manufacturing facilities are all awarded with ISO9001, ISO/TS16949 and ISO14001 accreditations. For more information, please contact the Asia Pacific headquarters in Hong Kong at (852) 2424-8228 or visit www.cotco.com.