CREE XTHIN? LEDS Hit New Brightness Milestone

October 12, 2004... Durham, North Carolina USA - Cree, Inc. (Nasdaq: CREE), a market leader in light emitting diode (LED) technology, today announced two new, higher brightness additions to the XThin? product family, The XT-24? and XT-27? LEDs with respective minimum radiant flux of 24mW and 27mW. Both the XT-24 and XT-27 chips are offered with a typical dominant wavelength of 460nm. This wavelength was selected to maximize the conversion efficiency Of most commercially available LED phosphors, which convert blue light to white light.

Target applications for the XT-24 and XT-27 LEDs are white light applications including LCD backlighting for mobile appliances and larger format LCD displays such as those used in car navigation systems. Both versions of the chip feature a low profile design with a typical height Of 115 microns and a low forward voltage of 3.2 V. These features are desirable for the latest generation of ultra-miniature high brightness white surface mount LEDs favored by designers of LCD backlights.

In the last five months since announcing the last addition to the XThin product family, we are releasing one of the brightest LEDs in the industry today,? stated Mike Dunn, Cree Vice President And General Manager, Optoelectronics. ?We believe this increase in brightness opens up new market opportunities for our customers and gives them a competitive alternative to today?s Cold Cathode Fluorescent Lamp (CCFL) backlighting technology for large format LCDs.?

The XT-24 product is now available in production volumes. The XT-27 product is available in sample quantities.

About Cree, Inc.
The product includes blue, green and near ultraviolet (UV) light emitting diodes (LEDs), Near UV lasers, radio frequency (RF) and microwave devices, and power switching devices. Cree understands the important convergence of science, technology and creativity, placing high value on ideas, as well as the energy and ability of its people. These products include solid-state illumination, power switching, wireless infrastructure and optical storage. For additional product specifications, please refer to the data sheets on Cree?s website at under LED Products.

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 the new products; the risk we will be unable to manufacture the products with the 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; risks associated with the commercial release of products under development, including the possibility we may be unable to develop and manufacture commodity viable version of such 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 27, 2004.

Cree, the Cree logo and XThin are registered trademarks, and XT-24 and XT-27 are trademarks, of Cree, Inc.

Cynthia Merrell
Chief Financial Officer
Cree, Inc.

(T) 919-313-5300
(F) 919-313-5452

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