<SUBMISSION>
<ACCESSION-NUMBER>0000895419-08-000032
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20080229
<ITEMS>3.02
<ITEMS>7.01
<ITEMS>9.01
<FILING-DATE>20080303
<DATE-OF-FILING-DATE-CHANGE>20080303
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>CREE INC
<CIK>0000895419
<ASSIGNED-SIC>3674
<IRS-NUMBER>561572719
<STATE-OF-INCORPORATION>NC
<FISCAL-YEAR-END>0629
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>000-21154
<FILM-NUMBER>08659744
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>4600 SILICON DR
<CITY>DURHAM
<STATE>NC
<ZIP>27703
<PHONE>9193135300
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>4600 SILICON DR
<CITY>DURHAM
<STATE>NC
<ZIP>27703-8475
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>CREE RESEARCH INC /NC/
<DATE-CHANGED>19940224
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form8k030308.htm
<DESCRIPTION>FORM 8-K MARCH 3 2008
<TEXT>
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D.C. 20549</font></div>
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8-K</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CURRENT
REPORT</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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to Section 13 OR 15(d) of The Securities Exchange Act of 1934</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a name="fis_unidentified_table">Date of Report (Date of Earliest Event Reported):
February 29, 200</a>8</font></div>
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INC.</font></div>
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313-5300</font></div>
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telephone number, including area code</font></div>
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appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:</font></div>
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]&#160;&#160;&#160;&#160;&#160;&#160; Written communications pursuant to Rule
425 under the Securities Act (17 CFR 230.425)</font></div>
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]&#160;&#160;&#160;&#160;&#160;&#160; Soliciting material pursuant to Rule
14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></div>
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]&#160;&#160;&#160;&#160;&#160;&#160; Pre-commencement communications pursuant
to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></div>
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]&#160;&#160;&#160;&#160;&#160;&#160; Pre-commencement communications pursuant
to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></div>
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    <div>&#160;</div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;On February
29, 2008, Cree, Inc., a North Carolina corporation (the &#8220;Company&#8221;), completed
its acquisition of LED Lighting Fixtures, Inc., a North Carolina corporation
(&#8220;LLF&#8221;), pursuant to a Merger Agreement and Plan of Reorganization, dated as of
February 7, 2008, among the Company, Rabbit Sub, Inc., a North Carolina
corporation and a wholly-owned subsidiary of the Company (&#8220;Merger Sub&#8221;), LLF and
certain shareholders of LLF (the &#8220;Merger Agreement&#8221;).&#160;&#160;Pursuant to the
Merger Agreement, LLF merged with and into Merger Sub (the
&#8220;Merger&#8221;).</font></div>
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issued 1,852,335 shares of the Company&#8217;s common stock in the Merger for all
outstanding shares of LLF&#8217;s common stock.&#160;&#160;The number of shares of the
Company&#8217;s common stock issued in the Merger was calculated in accordance with
the exchange ratio specified in the Merger Agreement based on an agreed per
share price of $28.317 for the Company&#8217;s shares, which represents the average
closing share price over the twenty trading days ending the day prior to the
date of the Merger Agreement.&#160;&#160;The Company paid $16.45 million in cash
for outstanding shares of LLF preferred stock.&#160;&#160;The Company also
assumed outstanding options to purchase shares of LLF common
stock.&#160;&#160;Additional cash consideration of up to $26.4 million may be
payable to the former holders of LLF common stock over the next three calendar
years tied to new product milestones and key employee retention.</font></div>
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the Company&#8217;s common stock issued in the Merger were issued in reliance on an
exemption from registration under Section 3(a)(10) of the Securities Act of
1933, as amended, for the issuance and exchange of securities approved in
accordance with a fairness hearing conducted under Section 78A-30 of the North
Carolina Securities Act, as evidenced by a Findings of Fact and Order of
Approval issued by the North Carolina Deputy Securities Administrator on
February 28, 2008.</font></div>
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    <div>&#160;</div>
    <div><a name="fis_financial_statements_and_exhibits" />&#160;</div>
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      7.01</font></div>
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2008, the Company issued a press release announcing the completion of the
Merger.&#160;&#160;A copy of the press release is furnished with this report as
Exhibit 99.1.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
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Exhibits</font></div>
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            <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
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    <div style="DISPLAY: block; TEXT-INDENT: 27pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.</font></div>
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            <td valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
            <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
            <td valign="top" width="23%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
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      <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">John
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            <td valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
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3, 2008</font></div>
    <div>&#160;</div>
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INDEX</font></div>
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            <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
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<DOCUMENT>
<TYPE>EX-99.1
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<DESCRIPTION>EXHIBIT 99.1
<TEXT>
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99.1</font></div>
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                <td align="left" valign="top" width="50%"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Investor
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                <td align="left" valign="top" width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Raiford
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                <td align="left" valign="top" width="50%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Michelle
      Murray</font></div>
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                <td valign="top" width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Director,
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              </tr>
              <tr>
                <td valign="top" width="50%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(919)
      287-7895</font></div>
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                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">raiford_garrabrant@cree.com</font></div>
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                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">michelle_murray@cree.com</font></div>
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      <div>&#160;</div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Cree Completes&#160;Acquisition
of&#160;LED Lighting Fixtures, Inc.</font></font></div>
      <div><br>&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">DURHAM, N.C.,&#160;MARCH 3, 2008
</font>&#8211; <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cree,
Inc. (Nasdaq: CREE), <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a market
leader in LED solid-state lighting, today announced that it has completed the
acquisition of&#160;privately-held LED Lighting Fixtures, Inc. (&#8220;LLF&#8221;).&#160;
Cree&#8217;s agreement to acquire LLF was announced February 8,
2008.</font></font></font></font>

        <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt">
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
closing, Cree issued 1,852,335 shares of common stock and paid approximately
$16.45 million in cash in exchange for LLF shares.&#160;&#160; Cree also assumed
outstanding LLF stock options.&#160; Additional cash consideration of up to
$26.4 million may be payable over the next three years tied to new product
milestones and key employee retention.</font></div>
          <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
acquisition expands Cree&#8217;s market opportunity by providing direct access to the
lighting market.&#160;&#160;Cree&#8217;s business now encompasses LED chips,
components and lighting solutions.&#160;&#160;It further enables Cree to drive
retrofit solutions to convert existing lighting infrastructure to
energy-efficient lighting and to accelerate the adoption of LED
lighting.</font></div>
          <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;The new
Cree LED Lighting Solutions team is delivering industry-leading LED lighting
products and working to set the standard for 21<font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">st</font> century
energy-efficient lighting,&#8221; said Chuck Swoboda, chairman and chief executive
officer of Cree.&#160;&#160;&#8220;We are out to lead the LED lighting revolution and
to obsolete the lightbulb.&#8221;</font></div>
          <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
company plans to announce financial results for its third fiscal quarter, ending
on March 30, after market close on April 22 and will provide additional
information about the acquisition at that time.</font></div>
        </div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt">
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">About
Cree</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cree is
leading the LED lighting revolution and setting the stage to obsolete the
incandescent light bulb through the use of energy-efficient,
environmentally-friendly LED lighting.&#160; Cree is a market-leading innovator
of lighting-class LEDs, LED lighting retrofit solutions, and semiconductor
solutions for backlighting, wireless and power applications.</font></div>
            <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cree&#8217;s
product families include blue and green LED chips, high brightness LEDs,
lighting-class power LEDs, power-switching devices and radio-frequency/wireless
devices.&#160;&#160;Cree solutions are driving improvements in applications such
as general illumination, backlighting, electronic signs and signals,
variable-speed motors, and wireless communications.</font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">For additional product&#160;and company information&#160;please refer
to <font style="DISPLAY: inline; TEXT-DECORATION: underline">www.cree.com</font>.</div>
          </div>
        </div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
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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 possibility that costs associated with
integrating the businesses may be greater than anticipated; the ability of the
combined businesses to be integrated successfully with Cree&#8217;s current
operations; the risk of intellectual property litigation; the ability of the
combined companies to achieve targeted results; customer acceptance of LED
products; the rapid development of new technology and competing products that
may impair demand or render Cree&#8217;s or LLF&#8217;s products obsolete; and other factors
discussed in Cree&#8217;s filings with the Securities and Exchange Commission,
including its report on Form 10-K for the year ended June 24, 2007, and
subsequent filings.</font></div>
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#</font></div>
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registered trademark of Cree, Inc. </font></div>
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trademark of Cree LED Lighting Solutions, Inc.</font></div>
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