Cree and Seoul Semiconductor Expand Business Relationship With LED Chip Supply and License Agreements

Durham, North Carolina USA– Cree, Inc. announced that it has signed a five-year supply agreement with Seoul Semiconductor Co., Ltd., a strategic LED chip customer headquartered in Korea. Seoul Semiconductor has committed to purchase at least $40 million of LED products during the first five quarters of the agreement. Purchase commitments for subsequent periods are to be negotiated annually. The agreement extends through Cree’s fiscal year ending June 2011 and may be extended up to five additional years if certain sales conditions are met.

Cree also today announced that the parties have entered into a license agreement pursuant to which the parties have cross-licensed certain patent rights relating to white LED technologies and have agreed to cooperate in defending these rights. The license granted by Cree to Seoul Semiconductor includes Cree’s U.S. Patent No. 6,600,175 and is one of several Cree has granted to its strategic partners under the