Cree Receives Additional $10 Million Funding Commitment for Laser and LED Development From Microvision, Inc.
Microvision Extends Development Program for Additional 2-year Period Cree Expands Equity Position
Durham, NC. Cree, Inc. (Nasdaq: CREE), the world leader in the development and manufacture of semiconductor materials and electronic devices made from silicon carbide (SiC), has received an additional $10 million funding commitment from Microvision, Inc. (Nasdaq: MVIS), the pioneer of Retinal Scanning Display (RSD) technology. Cree will use these funds for the further development of light emitting diodes (LEDs) and continuous wave blue and green laser devices for use in mobile handsets and headsets for the wireless Internet market. Under the terms of the amended agreement, Microvision will extend the development program for an additional two-year period. The original agreement signed in May 1999, provided for a one-year commitment with a one-year extension at Microvision s option.
Neal Hunter, Cree s Chairman and CEO, stated; "This partnership has afforded us the opportunity to achieve and reach new milestones in our light source development efforts. This additional funding will help us to expand our technology for inclusion in new state-of-the art applications including mobile Internet handsets and other applications. We are excited to renew our alliance with Microvision and look forward to the opportunity to intensify our development efforts."
Cree has also agreed to expand its equity position in Microvision. Cree and General Electric Pension Trust will each make a $12.5 million investment in Microvision s common stock. The amendment of the development agreement will become effective upon the closing of the transaction.
Microvision, Inc., headquartered in Bothell, Wash., is the developer of the patented Retinal Scanning Display technology that uses a rapidly scanned beam of light to project images on the eye s retina, allowing the viewer to see large, full-motion images without the need for a conventional display screen.
Microvision s objective is to be a leading provider of personal display products and imaging technology in a broad range of military, medical, industrial, professional and consumer applications. The company was founded in 1993. Additional information can be found at the company s website at http://www.mvis.com.
North Carolina based Cree, Inc. is the world leader in development and manufacturing semiconductor materials and electronic devices made from silicon carbide. The company uses proprietary technology to make enabling compound semiconductors such as blue and green LEDs, SiC crystals used in the production of unique gemstones and SiC wafers that are sold for device production and research. Cree has new product initiatives based on expertise in SiC, including radio frequency and microwave transistors for use in wireless infrastructure and radar, blue laser diodes for optical storage applications and high power devices for power conditioning and switching. For more information on Cree visit the company s website at http://www.cree.com.
This press release contains forward-looking statements involving risks and uncertainties that may cause actual results to differ materially from those indicated. Actual results could differ materially due to a number of factors, including the risks and uncertainties as to whether Cree will be able to achieve the substantial technological and manufacturing breakthroughs necessary to fulfill the goals of the development program, whether devices developed in the program will be commercially viable, whether Microvision will be able to utilize the devices in its scanned beam display systems, whether such systems will be accepted in the market, 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, 1999, subsequent quarterly reports and the registration statement on Form S-3 dated January 3, 2000.
Contact: Fran Barsky fran_barsky@cree.com
Fran Barsky fran_barsky@cree.com
E-mail: ehr@aixtron.com
Web site: http://www.cree.com
