exhibit99

Contact:	Raiford Garrabrant
	Cree, Inc.
	Director, Investor Relations
	Ph: 919-287-7895
	Fax: 919-313-5615
	Email: raiford_garrabrant@cree.com

Cree Reports Financial Results for the Second Quarter of Fiscal Year 2008

DURHAM, N.C., JANUARY 22, 2008– Cree, Inc. (Nasdaq: CREE), a market-leading innovator of semiconductors that enhance the value of solid-state lighting, power and communications products, today announced revenue of $119 million for its fiscal second quarter ended December 30, 2007. This represents a 5% increase compared to the fiscal first quarter of 2008 and a 34% increase compared to revenue of $88.8 million reported one year ago. GAAP net income for the second quarter was $6.6 million, or $0.08 per diluted share, compared to net income of $16.5 million or $0.21 per diluted share for the second quarter of fiscal 2007. Please note, the second quarter of fiscal year 2008 consisted of 14 weeks, compared to 13 weeks for the second quarter of fiscal year 2007.

The remainder of this press release highlights the company’s financial results on both a GAAP and a non-GAAP basis. The GAAP results include certain costs, charges, gains and losses that are excluded from non-GAAP results. By publishing the non-GAAP measures, management intends to provide investors with additional information to further analyze the company's performance, core results and underlying trends. Cree’s management evaluates results and makes operating decisions using both GAAP and non-GAAP measures included in this press release. Non-GAAP results are not prepared in accordance with GAAP, and non-GAAP information should be considered a supplement to, and not a substitute for, financial statements prepared in accordance with GAAP. Investors and potential investors are encouraged to review the reconciliation of non-GAAP financial measures to their most directly comparable GAAP measures attached to this press release.

GAAP earnings of $0.08 per diluted share includes certain expenses totaling $5.6 million, net of tax, or $0.06 per diluted share due to certain items. These items consist of amortization of acquired intangibles of $0.04 per diluted share, stock-based compensation expense of $0.3 per diluted share, and a one-time property tax gain of $0.01 per diluted share. On a non-GAAP basis, adjusted to exclude these items, net income for the second quarter of fiscal 2008 was $12.2 million, or $0.14 per diluted share. On a non-GAAP basis, adjusted to exclude similar items as in fiscal 2008, as well as a gain on the sale of investments, net income for the second quarter of fiscal 2007 was $7.2 million, or $0.09 per diluted share.

“Q2 was a strong quarter for Cree, as we continued to execute our strategy and delivered revenue and earnings at the high end of our previously announced target range,” stated Chuck Swoboda, Cree chairman and CEO. “The revenue growth was driven by higher LED sales, with XLamp® orders and shipments growing double digits sequentially as we were successful in bringing on-line additional XLamp capacity in China. Looking ahead, the global momentum for

sustainable, energy-efficient lighting products continued to build with the passage of the new U.S. Energy bill which will require the use of more efficient lighting technology and should further accelerate the adoption of LEDs.”

Recent Business Highlights:

Revealed plans to convert all lighting at Cree’s Durham headquarters and manufacturing facility to LED lighting. Energy usage for lighting has decreased by 48% in phase one of the conversion, and the results are available at www.ledworkplace.org. The combination of energy savings, reduced maintenance and disposal costs, and the environmental savings demonstrate that LED lighting is now a real alternative to traditional lighting solutions.

Ø	Launched the Cree Solutions Providers network to offer customers a full range of LED lighting-system solutions and design assistance to help accelerate time to market and reduce product development costs.

Announced that Ann Arbor, MI, will join Raleigh, NC, and Toronto in the growing LED City™ initiative. Ann Arbor plans to become the first U.S. city to convert 100 percent of its downtown streetlights to LED technology, and full implementation is projected to cut the city’s public lighting energy use in half and reduce greenhouse gas emissions by 2,425 tons of CO2 annually.

Ø	Commercially released zero micropipe ZMP™ 100-mm, n-type silicon carbide (SiC) substrates. With this achievement, Cree reinforces its position as the world’s leading manufacturer of SiC-based semiconductor materials.

Q2 2008 Financial Metrics:

Ø	Gross margin increased to 35% of revenue from 31% in Q1.

Ø	Cash flow from operations was $35.1 million.

Ø	Cash and investments increased $29.4 million to $361.9 million from Q1.

Business Outlook:

For its third quarter of fiscal 2008 ending March 30, 2008, which is comprised of 13 weeks, Cree targets revenue in a range of $120 million to $125 million with GAAP earnings of $0.07 to $0.09 per diluted share and non-GAAP earnings of $0.14 to $0.16 per diluted share, based on an estimated 87.3 million diluted weighted average shares. Targeted non-GAAP earnings exclude expenses related to the amortization of acquired intangibles of $3.1 million, net of tax, and stock based compensation expense of $3.0 million, net of tax.

Cree will host a conference call at 5:00 p.m. Eastern time today to review the highlights of the fiscal second quarter 2008 results and the fiscal third quarter 2008 business outlook, including significant factors and assumptions underlying the targets noted above. The conference call will be available to the public through a live audio web broadcast via the Internet. Log on to Cree’s website at www.cree.com and go to “Investor Relations — Overview” for webcast details. The call will be archived and available on the website through February 5, 2008.

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Supplemental financial information, including the non-GAAP reconciliation discussed below, is available in the “Investor Relations” section of Cree’s website, under “Financial Metrics,” “Quarter ending December 30, 2007,” at http://www.cree.com/investor/metrics.htm.

About Cree, Inc.

Cree is a market-leading innovator and manufacturer of semiconductors and devices that enhance the value of solid-state lighting, power and communications products by significantly increasing their energy performance and efficiency. Key to Cree’s market advantage is its world-class materials expertise in silicon carbide (SiC) and gallium nitride (GaN) for chips and packaged devices that can handle more power in a smaller space while producing less heat than other available technologies, materials and products.

Cree drives its increased performance technology into multiple applications, including exciting alternatives in brighter and more-tunable light for general illumination, backlighting for more-vivid displays, optimized power management for high-current, switch-mode power supplies and variable-speed motors, and more-effective wireless infrastructure for data and voice communications. Cree customers range from innovative lighting-fixture makers to defense-related federal agencies.

Cree’s product families include blue and green LED chips, lighting LEDs, LEDs for backlighting, power-switching devices and radio-frequency/wireless devices. For additional product specifications please refer to www.cree.com.

The schedules attached to this release are an integral part of the release. 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, including with respect to our targets and prospects, could differ materially due to a number of factors, including our ability to complete development and commercialization of products under development, such as our pipeline of brighter LED chips and packaged products; our ability to lower costs; potential changes in demand; increasing price competition in key markets; the risk that, due to the complexity of our manufacturing processes and transition of production to larger wafers, we may experience production delays that preclude us from shipping sufficient quantities to meet customer orders or that result in higher production costs and lower margins; risks associated with the ramp-up of our production for our new products, as well as production at our COTCO facility and subcontractors; risks resulting from the concentration of our business among few customers, including the risk that customers may reduce or cancel orders or fail to honor purchase commitments; 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 our products; risks associated with our recent acquisition; risks associated with ongoing litigation; and other factors discussed in our filings with the Securities and Exchange Commission, including our report on Form 10-K for the fiscal year ended June 24, 2007, and subsequent reports filed with the SEC. Except as required under the U.S. federal securities laws and the rules and regulations of the SEC, Cree disclaims any obligation to update any forward-looking statements after the date of this release, whether as a result of new information, future events, developments, changes in assumptions or otherwise.

Cree, the Cree logo and XLamp are registered trademarks, and LED City and ZMP are trademarks, of Cree, Inc.

CREE, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)



	Three Months Ended					Six Months Ended
	12/30/2007			12/24/2006		12/30/2007			12/24/2006
	(Unaudited)			(Unaudited)		(Unaudited)			(Unaudited)

Product revenue	$	111,341		$	81,522	$	217,304		$	178,940
Contract revenue		7,658			7,268		15,081			13,760
Total revenue		118,999			88,790		232,385			192,700

Cost of product revenue		71,251			52,626		143,831			108,499
Cost of contract revenue		5,952			5,795		12,018			10,932
Total cost of revenue		77,203			58,421		155,849			119,431

Gross margin		41,796			30,369		76,536			73,269

Operating expenses:
Research and development		14,901			14,287		27,678			28,653
Sales, general and administrative		18,211			12,576		36,373			24,522
Amortization of acquisition related intangibles		4,048			341		8,096			341
Loss on disposal or impairment of long-lived assets		474			85		1,209			182
Total operating expenses		37,634			27,289		73,356			53,698

Operating income		4,162			3,080		3,180			19,571

Non-operating income:
Gain on sale of investments, net		-			11,409		14,117			11,408
Other non-operating income		66			2		77			2
Interest income, net		4,516			3,980		8,232			7,846
Income from continuing operations before income taxes		8,744			18,471		25,606			38,827

Income tax expense		2,104			2,208		6,098			9,197
Net income from continuing operations		6,640			16,263		19,508			29,630

(Loss) income from discontinued operations, net of related tax effect		(20	)		216		(174	)		139
Net income	$	6,620		$	16,479	$	19,334		$	29,769

Diluted earnings per share:
Income from continuing operations	$	0.08		$	0.21	$	0.22		$	0.38
(Loss) income from discontinued operations	$	(0.00	)	$	0.00	$	(0.00	)	$	0.00
Net income	$	0.08		$	0.21	$	0.22		$	0.38

Weighted average shares of common
stock outstanding, basic		85,190			76,948		84,936			77,005

Weighted average shares of common
stock outstanding, diluted		86,848			78,093		86,713			78,043

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CREE, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)



	12/30/2007
	(Unaudited)		6/25/2007
Assets:
Current assets:
Cash, cash equivalents and short term investments	$	295,121	$	242,655
Accounts receivable, net		90,520		79,668
Inventory, net		75,063		71,068
Income taxes receivable and prepaid income taxes		3,246		7,947
Deferred income taxes		19,939		23,573
Prepaid expenses and other current assets		10,389		8,920
Assets of discontinued operations		150		301
Total current assets		494,428		434,132

Property and equipment, net		354,252		372,345
Long-term investments held to maturity		66,828		68,363
Intangible assets, net		89,573		96,138
Goodwill		144,334		141,777
Other assets		3,526		3,475
Total assets	$	1,152,941	$	1,116,230

Liabilities and Shareholders' Equity:
Current liabilities:
Accounts payable, trade	$	36,612	$	32,940
Accrued salaries and wages		10,197		10,241
Income taxes payable		6,856		4,504
Other current liabilities		6,212		6,259
Liabilities of discontinued operations		572		505
Total current liabilities		60,449		54,449

Long-term liabilities:
Deferred income taxes		36,499		38,758
Contingent tax reserves		5,792		5,792
Other long-term liabilities		173		129
Long-term liabilities of discontinued operations		924		1,103
Total long-term liabilities		43,388		45,782

Shareholders' Equity:
Common stock		107		106
Additional paid-in-capital		736,242		713,778
Comprehensive income		1,168		9,826
Retained earnings		311,587		292,289
Total shareholders' equity		1,049,104		1,015,999
Total liabilities and shareholders' equity	$	1,152,941	$	1,116,230

The following is a reconciliation showing how Cree, Inc.'s second quarter income statements for fiscal 2008 and 2007 would appear if they were adjusted for the items noted below.


CREE, INC.
Reconciling Items to Q2 2008 & 2007 Financial Statements - GAAP to Non-GAAP
(in thousands, except per share amounts)
(Unaudited)


	Three Months Ended										Three Months Ended
	December 30, 2007										December 24, 2006
	GAAP			Adjustments				Non-GAAP			GAAP			Adjustments				Non-GAAP

Product revenue	$	111,341		$	-			$	111,341		$	81,522		$	-			$	81,522
Contract revenue		7,658			-				7,658			7,268			-				7,268
Total revenue		118,999			-				118,999			88,790			-				88,790

Cost of product revenue		71,251			(726	)	(a)		70,525			52,626			(1,000	)	(a)		51,626
Cost of contract revenue		5,952			-				5,952			5,795			-				5,795
Total cost of sales		77,203			(726	)			76,477			58,421			(1,000	)			57,421

Gross margin		41,796			726				42,522			30,369			1,000				31,369
Gross margin percentage		35	%						36	%		34	%						35	%

Operating expenses:
Research and development		14,901			(1,039	)	(a)		13,862			14,287			(652	)	(a)		13,635
Sales, general and administrative		18,211			(1,492	)	(a)(b)		16,719			12,576			(1,066	)	(a)		11,510
Amortization of acquisition related intangibles		4,048			(4,048	)	(c)		-			341			(341	)	(c)		-
Loss on disposal of assets		474			-				474			85			-				85
Total operating expenses		37,634			(6,579	)			31,055			27,289			(2,059	)			25,230

Operating (loss) income		4,162			7,305				11,467			3,080			3,059				6,139

Non-operating income:
Gain (loss) on investments in securities		-			-				-			11,409			(11,351	)	(e)		58
Other non-operating income		66			-				66			2			-				2
Net interest income		4,516			-				4,516			3,980			-				3,980
Income from continuing operations before income taxes		8,744			7,305				16,049			18,471			(8,292	)			10,179

Income tax expense		2,104			1,753		(d)		3,857			2,208			715		(f)		2,923
Net income from continuing operations		6,640			5,552				12,192			16,263			(9,007	)			7,256

Income (loss) from discontinued operations, net of related tax		(20	)		-				(20	)		216			(287	)	(g)		(71	)
Net income	$	6,620		$	5,552			$	12,172		$	16,479		$	(9,294	)		$	7,185

Earnings per diluted share:
From continuing operations	$	0.08		$	0.06			$	0.14		$	0.21		$	(0.12	)		$	0.09
From discontinued operations	$	(0.00	)	$	-			$	(0.00	)	$	0.00		$	(0.00	)		$	(0.00	)
From net income	$	0.08		$	0.06			$	0.14		$	0.21		$	(0.12	)		$	0.09

Weighted average shares of common
stock outstanding, basic		85,190			-				85,190			76,948			-				76,948

Weighted average shares of common
stock outstanding, diluted		86,848			-				86,848			78,093			-				78,093



(a) Non-cash stock-based compensation expense of $726 in costs of product revenue, $1,039 in research and development and $2,174 in sales, general and administrative for the three months ended December 30, 2007 and $1,000 in costs of product revenue, $652 in research and development and $1,066 in sales, general and administrative for the three months ended December 24, 2006.

(b) Reversal of $682 in personal property assessment related to settling the audits of our 2002 through 2007 property tax returns with the County of Durham.

(c) Amortization expense of $4,048 for the three months ended December 30, 2007 and $341 for the three months ended December 24, 2006 recognized on intangible assets resulting from prior year acquisitions.

(d) Tax effects of non-cash stock-based compensation expense, the reversal of a portion of the amount accrued related to our personal property tax assessments and amortization related to acquisition related intangible assets.

(e) Gain on the sale of 931,000 shares of Color Kinetics Incorporated common stock.

(f) Tax effect related to non-cash stock-based compensation expense, the change in valuation allowance on our investment in Color Kinetics Incorporated common stock and the retroactive reinstatement of R&D tax credit, and amortization of acquisition related intangible assets.

(g) Gain realized as a result of entering into a sublease agreement at Cree Microwave.

The following is a reconciliation showing how Cree, Inc.'s year to date income statements for fiscal 2008 and 2007 would appear if they were adjusted for the items noted below.


CREE, INC.
Reconciling Items to Six Months Financial Statements - GAAP to Non-GAAP
(in thousands, except per share amounts)
(Unaudited)


	Six Months Ended										Six Months Ended
	December 30, 2007										December 24, 2006
	GAAP			Adjustments				As Adjusted			GAAP			Adjustments				As Adjusted

Product revenue	$	217,304		$	-			$	217,304		$	178,940		$	-			$	178,940
Contract revenue		15,081			-				15,081			13,760			-				13,760
Total revenue		232,385			-				232,385			192,700			-				192,700

Cost of product revenue		143,831			(1,640	)	(a)		142,191			108,499			(2,207	)	(a)		106,292
Cost of contract revenue		12,018			-				12,018			10,932			-				10,932
Total cost of sales		155,849			(1,640	)			154,209			119,431			(2,207	)			117,224

Gross margin		76,536			1,640				78,176			73,269			2,207				75,476
Gross margin percentage		33	%						34	%		38	%						39	%

Operating expenses:
Research and development		27,678			(1,936	)	(a)		25,742			28,653			(1,775	)	(a)		26,878
Sales, general and administrative		36,373			(4,656	)	(a)(b)		31,717			24,522			(2,443	)	(a)		22,079
Amortization of acquisition related intangibles		8,096			(8,096	)	(c)		-			341			(341	)	(c)		-
Loss on disposal of assets		1,209			-				1,209			182			-				182
Total operating expenses		73,356			(14,688	)			58,668			53,698			(4,559	)			49,139

Operating income		3,180			16,328				19,508			19,571			6,766				26,337

Non-operating income:
Gain (loss) on investments in securities		14,117			(14,117	)	(d)		-			11,408			(11,351	)	(d)		57
Other non-operating income		77			-				77			2			-				2
Net interest income		8,232			-				8,232			7,846			-				7,846
Income from continuing operations before income taxes		25,606			2,211				27,817			38,827			(4,585	)			34,242

Income tax expense		6,098			547		(e)		6,645			9,197			1,594		(e)		10,791
Net income from continuing operations		19,508			1,664				21,172			29,630			(6,179	)			23,451

Loss from discontinued operations, net of related tax		(174	)		-				(174	)		139			(271	)	(f)		(132	)
Net income	$	19,334		$	1,664			$	20,998		$	29,769		$	(6,450	)		$	23,319

Earnings per diluted share:
From continuing operations	$	0.22		$	0.02			$	0.24		$	0.38		$	(0.08	)		$	0.30
From discontinued operations	$	(0.00	)	$	-			$	(0.00	)	$	0.00		$	(0.00	)		$	(0.00	)
From net income	$	0.22		$	0.02			$	0.24		$	0.38		$	(0.08	)		$	0.30

Weighted average shares of common
stock outstanding, basic		84,936			-				84,936			77,005			-				77,005

Weighted average shares of common
stock outstanding, diluted		86,713			-				86,713			78,043			-				78,043



(a) Non-cash stock-based compensation expense of $1,640 in costs of product revenue, $1,936 in research and development and $3,608 in sales, general and administrative for the six months ended December 30, 2007 and $2,207 in costs of product revenue, $1,775 in research and development and $2,443 in sale, general and administrative for the six months ended December 24, 2006.

(b) Personal property assessment of $1,048 related to finalizing the audits of our 2002 through 2007 property tax returns.

(c) Amortization expense of $8,096 for the six months ended December 30, 2007 and $341 for the six months ended December 24, 2006 recognized on intangible assets resulting from prior year acquisitions.

(d) Gain on the sale of 500,000 shares of Color Kinetics Incorporated common stock during the six months ended December 30, 2007 and on the sale of 931,000 shares of Color Kinetics Incorporated common stock during the six months ended December 24, 2006.

(e) Tax effects for non-cash stock-based compensation expense, personal property tax assessment, the amortization of acquisition related intangible assets and on the sale of Color Kinetics Incorporated common stock.

(f) Gain realized as a result of entering into a sublease agreement at Cree Microwave.