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Cree's GaN Microwave Devices Launch Into Space

Source: Cree, Inc.

Space Shuttle Carries GaN Materials and HEMT Devices Into Orbit Test

Durham, NC. Cree, Inc. (Nasdaq: CREE) announced today that its gallium nitride (GaN) High Electron Mobility Transistor (HEMT) microwave devices and GaN HEMT epiwafer materials were successfully installed aboard the International Space Station after being launched into space by the Space Shuttle Discovery. The GaN HEMT transistors and material are being evaluated to determine their radiation hardness over existing semiconductor materials for future satellite applications. The materials and devices were incorporated into the Materials International Space Station Experiment (MISSE) for the purpose of determining how various materials endure the environment of space.

The Space Shuttle Discovery delivered the MISSE to the International Space Station after it was launched on August 10, 2001. The experiment was mounted onto the outside of the space station s airlock during the first spacewalk of the mission on August 16, 2001. After long-term exposure to space conditions, the MISSE will be retrieved and returned to earth on a future shuttle mission for test and evaluation.

Thomas Jenkins, of the Sensors Directorate of Air Force Research Laboratories (AFRL) stated, "We are excited about the rapid progress achieved for GaN microwave devices and are anxious to determine their applicability to satellite communications and other space-based applications as a result of this experiment."

The devices and material used are the result of a joint collaboration between Cree and the Sensors Directorate of the AFRL under a Dual Use Science and Technology program funded by the Department of Defense and Cree. The objective of the collaboration with the Sensors Directorate is to develop wide bandgap semiconductors for microwave technology that must operate under extreme conditions, such as a crowded or hostile electromagnetic spectrum and limited environmental controls due to constraints of mass, volume, or prime power. The insertion of GaN into the flight was spearheaded by the Materials and Manufacturing Directorate of AFRL, which organized the MISSE for this shuttle mission.

Cree has previously reported record results in terms of total power for GaN microwave devices, 50 watts at 10 GHz, and also demonstrated the first Monolithic Microwave Integrated Circuit (MMIC) in GaN, which was grown on Cree s semi-insulating SiC substrate. These devices have now achieved 24 Watts of pulsed RF output power at 16 GHz, about three times the highest RF output power of gallium arsenide (GaAs) MMICs available for this frequency range.

Dr. John Palmour, Cree s Director of Advanced Devices commented, "The inclusion of our GaN microwave technology in this advanced experiment not only demonstrates Cree s leadership in this field, but also highlights the emerging application area of broadband satellite communications for GaN microwave devices." More information on the MISSE experiment and Discovery s Flight STS-105 may be found at: http://spaceflight.nasa.gov/shuttle/index.html, and at: http://misse1.larc.nasa.gov/

North Carolina-based Cree, Inc. develops and manufactures semiconductor materials and devices based on silicon carbide (SiC), gallium nitride (GaN) and related compounds. The company s products include blue, green and UV LEDs, RF power transistors for use in wireless infrastructure applications, Schottky diodes for power conditioning and switching, SiC crystals used in the production of unique gemstones and SiC wafers sold for use in production and in research and development. Cree has new product initiatives based on its experience in SiC and GaN-based semiconductors, including blue laser diodes for optical storage applications, high frequency microwave devices for radar and other communications systems. For more information on Cree, visit 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 possibility we may be unable to develop commercial products based on the technology discussed in the release; the potential lack of customer acceptance even if products are developed; the possibility we may be unable to manufacture such products with sufficiently low cost to offer them at competitive prices or with acceptable margins; and other factors discussed in our filings with the Securities and Exchange Commission, including our report on Form 10-K for the year ended June 25, 2000 and subsequent reports.

Contact: Fran Barsky, Investor Relations Manager of Cree Tel: 919-313-5397 Fax: 919-313-5452

Fran Barsky, Investor Relations Manager of Cree
Tel: 919-313-5397
Fax: 919-313-5452
Web site: http://www.cree.com
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