<SUBMISSION>
<ACCESSION-NUMBER>0000895419-08-000050
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>3
<PERIOD>20080818
<ITEMS>5.02
<ITEMS>9.01
<FILING-DATE>20080819
<DATE-OF-FILING-DATE-CHANGE>20080819
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>CREE INC
<CIK>0000895419
<ASSIGNED-SIC>3674
<IRS-NUMBER>561572719
<STATE-OF-INCORPORATION>NC
<FISCAL-YEAR-END>0628
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>000-21154
<FILM-NUMBER>081027389
</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>form8k081908.htm
<DESCRIPTION>FORM 8-K AUGUST 19 2008
<TEXT>
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COMMISSION</font></font></div>
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20549</font></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">CURRENT REPORT </font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934</font></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><a name="fis_unidentified_table"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Date of Report (Date of Earliest
Event Reported): August 18, 2008</font></font></a></div>
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specified in its charter)</font></font></div>
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communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)</font></div>
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240.14a-12)</font></div>
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communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))</font></div>
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]</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))</font><a name="fis_financial_statements_and_exhibits" /></div>
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5.02</font></font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Departure of Directors
      or&#160;Certain Officers; Election of Directors; Appointment of Certain
      Officers; Compensatory Arrangements of Certain
    Officers</font></font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</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"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Appointment of Chief
Operating Officer and Executive Vice President</font></font></div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On August
18, 2008, the Board of Directors of Cree, Inc. (the &#8220;Company&#8221;) appointed Steve
Kelley, age 45, as an Executive Vice President and as Chief Operating Officer of
the Company effective as of August 19, 2008.&#160;&#160;The Company issued a
press release regarding the appointment on August 19, 2008.&#160;&#160;A copy of
the press release is attached as Exhibit 99.1.&#160;&#160;Mr. Kelley has served
since 2003 as Vice President and General Manager of the Standard Linear and
Logic Group of Texas Instruments Incorporated, a publicly-traded semiconductor
supplier based in Dallas, Texas.&#160;&#160;Mr. Kelley served as Senior Vice
President and General Manager of Philips Semiconductors, a division of Royal
Philips Electronics N.V., from 2002 to 2003, and held a series of other
executive positions with Philips Semiconductors beginning in 1993.&#160;&#160;He
was previously employed by National Semiconductor Corporation, MX-COM, Inc.,
Fairchild Semiconductor International, Inc., and Motorola Semiconductor (now
Freescale, Inc.).<font style="DISPLAY: inline">&#160;</font></font></div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
connection with Mr. Kelley&#8217;s employment with the Company, Mr. Kelley and the
Company entered into an employment offer letter executed on August 8, 2008 (the
&#8220;Offer Letter&#8221;), containing the following material terms:</font></div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt">
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                  <td align="right" style="WIDTH: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt;" face="Symbol, serif"><font style="FONT-WEIGHT: bold; FONT-SIZE: 10pt;" face="Symbol">&#183;</font>&#160;&#160;
      &#160;</font></td>
                  <td>
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
      Kelley will be paid an annual base salary of $350,000 and a sign-on bonus
      of $<font style="DISPLAY: inline">90,000 (plus certain tax gross-up
      amounts on the bonus).</font>&#160;&#160;The sign-on bonus is subject to
      repayment, <font style="DISPLAY: inline">less</font> a pro rata <font style="DISPLAY: inline">amount for each full month worked</font>, if he
      resigns or his employment is terminated for cause within 12
      months.</font></div>
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                  <td align="right" style="WIDTH: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt;" face="Symbol, serif"><font size="3" style="FONT-WEIGHT: bold; FONT-SIZE: 10pt;" face="Symbol">&#183;</font>&#160;&#160;&#160;&#160;</font></td>
                  <td>
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
      Kelley will <font style="DISPLAY: inline">be eligible to
      </font>participate in the Company&#8217;s Management Incentive Compensation Plan
      with <font style="DISPLAY: inline">an annual</font> target award<font style="DISPLAY: inline"> level</font> equal to 60% of his base
      salary.&#160;&#160;The actual amount of the incentive payment will depend
      on meeting objectives tied to quarterly (weighted at 40%) and annual
      (weighted at 60%) performance goals set in accordance with the plan
      document.&#160;&#160;For the first two fiscal quarters in which he
      participates, his performance measurement against the individual component
      of his quarterly goals will be deemed to be 100% without regard to actual
      results.</font></div>
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                  <td><font size="2">Mr. Kelley will be granted an option to purchase 80,000
      shares of the Company&#8217;s common stock and an award of 20,000 shares of
      restricted stock under the Company&#8217;s 2004 Long-Term Incentive Compensation
      Plan (the &#8220;Plan&#8221;).&#160;&#160;Both awards will be made on the first
      business day of the calendar month following the first day of his
      employment.&#160;&#160;The option will vest and become exercisable over a
      three-year period in equal installments on the anniversary of the grant
      date, subject to the condition that Mr. Kelley remain employed by the
      Company or a related &#8220;Employer&#8221; as defined in the Plan.&#160;&#160;If not
      sooner terminated, the option will expire seven years after the grant
      date.&#160;&#160;The exercise price of the option will be the last sales
      price reported for the regular trading session on the Nasdaq Stock Market
      on the grant date.&#160;&#160;The restricted stock award will vest over a
      five-year period in equal installments, beginning on September 1, 2009,
      subject to the</font></td>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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              <td><font size="2">      </font>
                <div style="TEXT-ALIGN: left" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">condition
      that Mr. Kelley remain employed by the Company or a related
      Employer.&#160;&#160;The Company filed a copy of the Plan as amended with
      the Commission on November 7, 2007 as Exhibit 10.1 to the Company&#8217;s <font style="DISPLAY: inline">Current Report on Form 8-K.&#160;&#160;The Company
      filed forms of the Master Stock Option Award Agreement for Grants of
      Nonqualified Stock Options and Master Restricted Stock Award Agreement
      with the Commission on November 2, 2006 as Exhibits 10.4 and 10.5,
      respectively, to the Company&#8217;s Quarterly Report on Form 10-Q for the
      quarter ended September 24,
2006.</font></font></div>
              </td>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div style="DISPLAY: block; TEXT-INDENT: 0pt">
        <div>
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              <tr valign="top" style="LINE-HEIGHT: 1.25;">
                <td align="right" style="WIDTH: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt;" face="Symbol, serif"><font style="FONT-WEIGHT: bold">&#183;</font>&#160;&#160; &#160;</font></td>
                <td>
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company will pay for certain costs in connection with Mr. Kelley&#8217;s
      relocation from Plano, Texas to North Carolina.&#160;&#160;The Company
      will provide Mr. Kelley with temporary housing in North Carolina for up to
      one year and will also pay or reimburse other costs in accordance with the
      Company&#8217;s relocation policy for new hires.&#160;&#160;<font style="DISPLAY: inline">In addition, the</font> Company has agreed to
      reimburse Mr. Kelley for seller brokerage fees, seller paid closing costs,
      and/or any loss on sale in connection with the sale of his primary
      residence in Texas and reasonable and customary closing costs on the
      purchase of a primary residence in the vicinity of Research Triangle Park,
      North Carolina, up to a maximum amount of $75,000, and for travel costs
      for biweekly trips between Plano, Texas and North Carolina until the
      earlier of August 18, 2009, or the move of his family&#8217;s residence to North
      Carolina.&#160;&#160;<font style="DISPLAY: inline">Mr. Kelley will receive
      certain tax gross-up payments with respect to the taxable relocation
      payments described above, and the relocation payments are subject to
      repayment, consistent with the terms of the Company&#8217;s relocation policy,
      if Mr. Kelley resigns or he is terminated for cause within 12 months after
      payment of such amount by the
Company.</font></font></div>
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
          <div>
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                <tr valign="top" style="LINE-HEIGHT: 1.25;">
                  <td align="right" style="WIDTH: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt;" face="Symbol, serif"><font style="FONT-WEIGHT: bold">&#183;</font>&#160;&#160; &#160;</font></td>
                  <td>
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
      Kelley will be an at-will employee, meaning that he or the Company can
      terminate his employment at any time.&#160;&#160;However, as soon as
      possible after his commencement date, he and the Company will enter into a
      Change in Control Agreement.&#160;&#160;Such agreement will provide that
      if, within 12 months after a change in control, the Company terminates his
      employment without cause or he resigns for good reason, he will receive
      (i) continued payment of his base salary for 12 months following his
      termination, (ii) accelerated vesting of all unvested stock options and
      time-vested restricted stock awards, and (iii) a lump sum payment equal to
      12 multiplied by the COBRA premium for him and his eligible
      dependents.&#160;&#160;&#160;<font style="DISPLAY: inline">As a condition
      to the receipt of these severance benefits, Mr. Kelley must (i) sign and
      not revoke a separation agreement and release of claims and (ii) sign and
      continue to comply with noncompete, nonsolicitation, and nondisparagement
      obligations during the 12 months following termination of his
      employment.</font></font></div>
                  </td>
                </tr>
            </table>
          </div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div>
            <table cellpadding="0" cellspacing="0" id="list" width="100%">
                <tr valign="top" style="LINE-HEIGHT: 1.25;">
                  <td align="right" style="WIDTH: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt;" face="Symbol, serif"><font style="FONT-WEIGHT: bold">&#183;</font>&#160; &#160;&#160;</font></td>
                  <td>
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
      Kelley will participate in the Company&#8217;s Severance Plan for officers who
      are subject to the reporting requirements of Section 16 of the Securities
      Exchange Act of 1934, as amended (a &#8220;Section 16 Officer&#8221;).&#160;&#160;The
      Severance Plan provides that if the Company terminates the employment of a
      Section 16 Officer without cause or the Section 16 Officer resigns for
      good reason (other than in connection with a change of control), the
      Section 16 Officer will receive (i) continued payment of his/her base
      salary for <font style="DISPLAY: inline">12</font> months following such
      termination, and (ii) a lump sum payment equal to <font style="DISPLAY: inline">12</font><font style="DISPLAY: inline">&#160;</font>multiplied by the COBRA premium for
      him and his eligible dependents.&#160;&#160;<font style="DISPLAY: inline">As a condition to the receipt of these severance
      benefits, Mr. Kelley must (i) sign and not revoke a separation agreement
      and release of claims and (ii) sign and continue to comply with
      noncompete,</font></font></div>
                    </div>
                  </td>
                </tr>
            </table>
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          <div>&#160;</div>
          <div>&#160;</div>
        </div>
      </div>
    </div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
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      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">- 3
-</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
          <div style="DISPLAY: block; TEXT-INDENT: 0pt">
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
              <div>
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                    <tr valign="top" style="LINE-HEIGHT: 1.25;">
                      <td align="right" style="WIDTH: 48px"><font style="DISPLAY: inline; FONT-SIZE: 10pt;" face="Symbol, serif">&#160;&#160;&#160;&#160;</font></td>
                      <td width="933">
                        <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">nonsolicitation,
      and nondisparagement obligations during the 12 months following
      termination of his employment.</font></div>
                      </td>
                    </tr>
                </table>
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
            </div>
          </div>
        </div>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">
            <tr valign="top" style="LINE-HEIGHT: 1.25;">
              <td align="right" style="WIDTH: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt;" face="Symbol, serif"><font style="FONT-WEIGHT: bold">&#183;</font>&#160;&#160; &#160;</font></td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
      Kelley has executed the Company's standard form of employee agreement
      regarding confidential information, intellectual property and
      noncompetition.&#160;&#160;This agreement includes an undertaking by the
      employee not to perform the same or similar services in any capacity for,
      or own an equity interest in, a business that competes with the Company's
      business for a period of one year following any termination of
      employment.</font></div>
              </td>
            </tr>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline">The foregoing description of the Offer Letter is subject
to and qualified in its entirety by the Offer Letter, which is included as
Exhibit 10.1 to this report and incorporated herein by
reference.</font></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <table cellpadding="0" cellspacing="0" width="90%">
          <tr>
            <td align="left" valign="top" width="6%">
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9.01</font></font></div>
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            <td align="left" valign="top" width="63%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Financial Statements and
      Exhibits</font></font></div>
            </td>
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    <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -54pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">(d)</font></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Exhibits</font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div align="left">
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          <tr>
            <td align="left" valign="top" width="5%">&#160;</td>
            <td align="left" valign="top" width="13%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Exhibit
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            </td>
            <td align="left" valign="top" width="5%">&#160;</td>
            <td align="left" valign="top" width="25%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Description of
      Exhibit</font></font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="5%">&#160;</td>
            <td align="left" valign="top" width="13%">&#160;</td>
            <td align="left" valign="top" width="5%">&#160;</td>
            <td align="left" valign="top" width="25%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="5%">&#160;</td>
            <td align="left" valign="top" width="13%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">10.1</font></div>
            </td>
            <td align="left" valign="top" width="5%">&#160;</td>
            <td align="left" valign="top" width="25%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Offer
      Letter Agreement, executed August 8, 2008, between Cree, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Inc.
      and Steve Kelley</font></div>
            </td>
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          <tr>
            <td align="left" valign="top" width="5%">&#160;</td>
            <td align="left" valign="top" width="13%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">99.1</font></div>
            </td>
            <td align="left" valign="top" width="5%">&#160;</td>
            <td align="left" valign="top" width="25%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Press
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            </td>
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    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>&#160;</div>
    <div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
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        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">- 4
-</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
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    <div>&#160;</div>
    <div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><a name="fis_signatures"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">SIGNATURE</font></font></a></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><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>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
        <div align="left">
          <table border="0" cellpadding="0" cellspacing="0" width="85%">
              <tr>
                <td align="left" valign="top" width="32%">&#160;</td>
                <td align="left" colspan="3" valign="top" width="26%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">CREE,
    INC.</font></font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="32%">&#160;</td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="1%">&#160;</td>
                <td align="left" valign="top" width="23%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="32%">&#160;</td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="1%">&#160;</td>
                <td align="left" valign="top" width="23%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="32%">&#160;</td>
                <td align="left" valign="top" width="2%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">By:
      </font></div>
                </td>
                <td align="left" valign="top" width="1%">&#160;</td>
                <td align="left" valign="top" width="23%" style="BORDER-BOTTOM: black 2px solid">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">/s/
      Charles M. Swoboda</font></td>
              </tr>
              <tr>
                <td align="left" valign="top" width="32%">&#160;</td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="1%">&#160;</td>
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                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
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President</font></div>
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19, 2008</font></div>
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    No.</font></font></div>
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      Exhibit</font></font></div>
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              <td align="left" valign="top" width="13%">&#160;</td>
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            </tr>
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              </td>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Offer
      Letter Agreement, executed August 8, 2008, between Cree, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Inc.
      and Steve Kelley</font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Press
      Release, dated August 19, 2008</font></div>
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<TYPE>EX-10.1
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<DESCRIPTION>EXHIBIT 10.1
<TEXT>
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      <div>
        <div>
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        </div>
      </div>
      <div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Exhibit
10.1</font></div><br></div>
      </div>
    </div>
    <div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">August 6,
2008</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr. Steve
Kelley</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1716
MacGregor Drive</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Plano, TX
&#160;75093 </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dear
Steve: </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">It is my
pleasure to extend to you an offer of regular, full-time employment with Cree,
Inc. (&#8220;Cree&#8221; or the &#8220;Company&#8221;) at our principle offices in Durham,
NC.&#160;&#160;With your skills, qualifications and enthusiasm, we are excited
about the prospect of you joining the Cree team and believe that you will make
an excellent addition to the management team. The terms of our offer are as
follows:</font></div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">TITLE:&#160;&#160;</font>You will be
employed by Cree, Inc. as its Chief Operating Officer (COO).&#160;&#160;The
Company&#8217;s Bylaws require the Board of Directors to approve your appointment as
an Executive Vice President of the Company.&#160;&#160;The Board will be asked
to approve your appointment to such position on or before its next regularly
scheduled meeting on August 19, 2008.</font></div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">SUPERVISION:&#160;&#160;</font>You
will be reporting directly to Chuck Swoboda in his role as Chief Executive
Officer (CEO).</font></div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">COMPENSATION: </font>You will receive
an annual base salary of $350,000 to be paid in accordance with the Company&#8217;s
standard payroll practices in effect from time to time.&#160;&#160;Our payroll
is currently paid on a bi-weekly basis.&#160;&#160;The Compensation Committee of
the Board of Directors will review your total compensation on an annual basis,
beginning September 2009.</font></div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">SIGN-ON BONUS:</font>&#160;&#160;You
will be paid a sign-on bonus of $90,000, grossed-up for income and withholding
taxes (other than Social Security withholding taxes) based on the tax rates
applicable to supplemental wage payments at the time of payment, within sixty
(60) days following your start date. (We will not gross-up such amount for
Social Security withholding because you will be able to obtain a full credit for
any such amount withheld by Cree on your 2008 federal individual income tax
return.)&#160;&#160;If you voluntarily resign or your employment is terminated
for cause within twelve (12) months of your start date, you will be obligated to
repay the Company the amount you received on account of the sign-on bonus, less
one-twelfth of such amount for each full month of employment that you have
completed.&#160;&#160;The bonus will be considered a salary advance for so long
as you have a repayment obligation with respect to any part of it.&#160;&#160;If
repayment is necessary, your total earnings for the year will be adjusted to
reflect the forfeiture of part of or the entire sign-on bonus, as applicable,
after receipt of the amount due.</font></div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">MANAGEMENT INCENTIVE COMPENSATION
PLAN:&#160;&#160;</font>Effective as of your date of hire, you will be eligible
to participate in the Company&#8217;s Management Incentive Compensation Program (MICP)
with an annual target award level of 60% of your base salary.&#160;&#160;The
actual amount of the MICP incentive payment will be determined based on meeting
objectives tied to quarterly (weighted at 40%) and annual (weighted at 60%)
performance goals set in accordance with the plan document.&#160;&#160;Your
performance measurement against the individual component of your quarterly goals
during your first two fiscal quarters of participation (i.e., Q1FY09 and Q2FY09)
will be deemed to be 100%, without regard to actual results.&#160;&#160;Your
award amount for such quarters and the remainder of fiscal 2009 will otherwise
be determined in accordance with the</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">terms of
the plan document, except that, provided your date of hire is on or before
August 29, 2008, your awards for your first quarter of participation and the
annual award will not be reduced to reflect that you were employed for less than
the full award period.&#160;&#160;The terms and conditions of the MICP and your
participation therein are subject to review and approval of the Compensation
Committee annually.&#160;&#160;&#160;We expect the Compensation Committee to
approve the MICP for fiscal year 2009 in August 2008.</font></div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">START DATE:&#160;&#160;</font>Your
start date will be no later than August 19, 2008, or such other date as agreed
by you and the CEO.</font></div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">EQUITY PROGRAM:&#160;&#160;</font>You
will be eligible to receive long-term incentive awards from time to time subject
to terms and conditions established by the Compensation Committee, the
underlying long-term incentive plan document, and the Company&#8217;s terms and
conditions for the applicable type of award, including vesting criteria such as
continued service or performance objectives.&#160;&#160;Initially you will be
granted an option to purchase 80,000 shares of the Company&#8217;s common stock at a
purchase price equal to the fair market value on the grant date, determined as
the last sale price reported for the regular trading session on the Nasdaq Stock
Market on the grant date (or, if the grant date is not a trading day, the last
day of regular trading preceding the grant date).&#160;&#160;You will also be
granted 20,000 shares of restricted stock.&#160;&#160;Both the option grant and
the restricted stock award will be made pursuant to the Company&#8217;s 2004 Long-Term
Incentive Compensation Plan (the &#8220;Plan&#8221;).&#160;&#160;The grant date for both
awards will be the first business day of the calendar month following the first
day of your employment.&#160;&#160;The option will be a nonqualified stock
option and will vest over a three-year period in equal installments on each
anniversary of the grant date so long as you remain employed with the Company or
a related Employer under the Plan.&#160;&#160;The restricted stock award will
vest over a five-year period in equal installments beginning on September 1,
2009 and on each anniversary of such date so long as you remain employed with
the Company or a related Employer under the Plan.&#160;&#160;The option will be
subject to the provisions of the Plan and the Cree, Inc. Master Stock Option
Award Agreement to be entered into by you and the Company.&#160;&#160;The
restricted stock award will be subject to the provisions of the Plan and the
Cree, Inc. Master Restricted Stock Award Agreement to be entered into by you and
the Company.&#160;&#160;Copies of these agreements have been provided to you
under separate cover.</font></div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">BENEFITS:&#160;&#160;</font>You will
be eligible to participate in all benefit plans offered to Company employees
generally, subject to applicable service periods and other terms of the
governing plan documents.&#160;&#160;A summary of these benefits has been sent
to you under separate cover.</font></div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">RELOCATION:&#160;&#160;</font>In
connection with your relocation to Durham, Cree will provide you with the
relocation assistance benefits described in this paragraph.&#160;&#160;Prior to
receipt of any relocation assistance benefits, you will be required to sign the
New Employee Relocation Agreement (Form HR17/3.01), a copy of which has been
provided to you under separate cover.&#160;&#160;The repayment obligations set
forth in the agreement apply to all relocation assistance benefits provided
under this paragraph.&#160;&#160;Cree will gross-up relocation expenses that are
taxable to you at the supplemental federal and state income tax rates and the
Medicaid withholding rate applicable to such compensatory
amounts.&#160;&#160;(We will not gross-up such amounts for Social Security
withholding because you will be able to obtain a full credit for any such
amounts withheld by Cree on your 2008 federal individual income tax
return.)&#160;&#160;In accordance with Cree&#8217;s Relocation Policy for New Hires
and Transferees (Policy # 3.80), a copy of which has been provided to you under
separate cover, Cree will pay or reimburse you for the actual and reasonable
costs of: (i) one house-hunting trip for your spouse and children (up to 5
days); (ii) moving you, your family, and household belongings from your current
residence in Plano, Texas, to the Research Triangle Park area, provided such
expenses are incurred within one year from your start date; and (iii) temporary
housing for up to twelve (12) months beginning on or about your start date, in
the vicinity of Research Triangle Park, North Carolina, until you are able to
make permanent housing arrangements.&#160;&#160;Upon receipt of appropriate
supporting documentation, the Company also will reimburse you for reasonable and
customary brokerage fees, seller paid closing costs, and/or any loss on sale
(i.e., if the net proceeds from the sale are lower than your cost basis) in
connection with the sale of your primary residence in Plano, Texas and
reasonable and customary closing costs on the purchase of a primary residence in
the vicinity of Research Triangle Park, North Carolina, up to a maximum amount
of $75,000</font></div>
      </div>
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">for these
items (excluding gross-up for taxes).&#160;&#160;In addition, until the first
anniversary of your start date or until your family&#8217;s residence has been moved
to North Carolina, whichever occurs first, the Company will reimburse you for
the cost of round-trip, coach fare airline tickets for up to one trip to Plano,
Texas every other week.&#160;&#160;Reimbursement amounts will be paid promptly
following submission of appropriate documentation evidencing
payment.&#160;&#160;Fonville Morisey Realty will assist you with your entire
move and will direct bill the Company for many of the covered
expenses.</font></div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
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(PTO):&#160;&#160;</font>Initially, you will be eligible to accrue paid-time off
(i.e., vacation) at the rate of three (3) weeks annually, and your accrual rate
will increase for each year of employment in accordance with the Company&#8217;s Paid
Time Off (PTO) Policy.</font></div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">CONFIDENTILITY, INTELLECTUAL PROPERTY
AND NON-COMPETITION AGREEMENT: </font>You will be required to sign the Company&#8217;s
standard form of Employee Agreement Concerning Confidential Information,
Intellectual Property and Non-Competition (&#8220;Employee Agreement&#8221;) on or before
your first day of employment.&#160;&#160;A copy of this agreement has been
provided to you under separate cover.&#160;&#160;This agreement obligates you,
among other things, not to disclose confidential information of the Company
without authorization, to assign to the Company rights in inventions or other
intellectual property developed in the course of your employment, and not to
engage in competition with the Company for a period of one year following any
termination of your employment.&#160;&#160;Neither this letter nor the Employee
Agreement, however, constitutes a commitment by the Company to employ you for
any specific term.&#160;&#160;Either you or the Company may terminate the
employment relationship at any time, with or without cause or
notice.</font></div>
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">CHANGE OF CONTROL
AGREEMENT:&#160;&#160;</font>As soon as possible after your start date, the
Company will enter into a Change of Control Agreement with
you,&#160;&#160;subject to prior approval of the terms and conditions of such
agreement by the Compensation Committee.&#160;&#160;Such agreement will provide
that, in the event that the Company terminates your employment without &#8220;Cause&#8221;
or you resign for &#8220;Good Reason&#8221; within twelve (12) months after a &#8220;Change in
Control&#8221; (as such terms are defined in the Change of Control Agreement), you
will receive (i) continued payment of your base salary for twelve (12) months
following your termination, (ii) accelerated vesting of all unvested stock
options and time-vested restricted stock awards, and (iii) a lump sum payment
equal to twelve (12) multiplied by the COBRA premium in effect at the time of
your termination for the type of medical, dental and vision coverage you have
elected for you and your dependents under the Company&#8217;s group health
plan.&#160;&#160;These payments, continued benefits, and accelerated vesting
will be subject to applicable tax withholding, statutorily imposed payment
terms, and to (i) your signing and not revoking a separation agreement and
release of claims in a mutually agreed form, and (ii) your signing and
continuing to comply with non-compete, non-solicitation, and non-disparagement
obligations during the twelve (12) months following termination of your
employment.</font></div>
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">SEVERANCE:&#160;&#160;</font>The
Company&#8217;s management has recommended, and the Compensation Committee is expected
to approve in August 2008, the adoption of a Severance Plan for officers of the
Company who are subject to the reporting requirements of Section&#160;16 of the
Securities Exchange Act of 1934, as amended (a &#8220;Section 16
Officer&#8221;).&#160;&#160;&#160;As currently recommended, the Severance Plan
provides that in the event that the Company terminates the employment of a
Section 16 Officer without &#8220;Cause&#8221; (other than in connection with a Change of
Control), the Section 16 Officer will receive (i) continued payment of his/her
base salary for twelve (12) months following such termination, and (ii)
reimbursement of COBRA premiums paid or payable by the individual to continue
coverage under the Company&#8217;s medical plans for the individual and his/her
eligible dependents for up to twelve (12) months following such termination,
provided he/she elects to continue medical coverage in accordance with
applicable law.&#160;&#160;As the Company&#8217;s Chief Operating Officer, you will be
considered to be a Section 16 Officer under this plan when it is approved by the
Compensation Committee.&#160;&#160;Payments and continued benefits under the
Severance Plan will be subject to applicable tax withholding, statutorily
imposed payment terms, and to (i) your signing and not revoking a separation
agreement and release of claims in a mutually agreed form, and (ii) your signing
and continuing to comply with non-compete, non-solicitation, and
non-disparagement obligations during the twelve (12) months following
termination of your employment.&#160;&#160;&#160;The Compensation Committee must
approve the</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Severance
Plan described in this paragraph, and the Committee may modify or amend such
plan at anytime in the Committee&#8217;s discretion.</font></div>
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">CODES OF CONDUCT AND
ETHICS</font>:&#160;&#160;At all times, you will be expected to observe the
highest standards of ethical, personal, and professional conduct and to comply
with the Company&#8217;s Code of Conduct and the Code of Ethics for Senior Financial
Officers, copies of which have been provided to you.&#160;&#160;&#160;You will
be required to sign a Certificate of Acknowledgment annually regarding the Code
of Conduct and the Code of Ethics for Senior Financial Officers.</font></div>
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">ABSENCE OF CONFLICTING
OBLIGATIONS</font>:&#160;&#160;By accepting this offer, you are representing and
promising to the Company that your employment with the Company will not breach
any obligation you have to any prior employee or to another third party, whether
pursuant to a non-competition or other agreement or applicable law.</font></div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">CONDITIONS
PRECEDENT</font>:&#160;&#160;As a condition of employment, you must also
successfully complete a pre-employment drug screen in accordance with the
Company&#8217;s policy.&#160;&#160;In addition, on your first day of employment you
will also be required to produce two forms of identification; one establishing
your identity and one establishing your employment eligibility, as listed by the
U.S. Department of Justice on its Employee Eligibility Verification
Form.</font></div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If these
employment terms are satisfactory to you, please indicate your acceptance by
signing below and returning one copy of the signed offer letter to
me.&#160;&#160;This offer will expire unless accepted in writing on or before
August 8, 2008.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left">&#160;</div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Steve, we
are looking forward to working with you and are confident that your skills and
experience will make a significant contribution to Cree&#8217;s growth.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Sincerely,</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/
Brenda F. Castonguay</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Brenda F.
Castonguay</font></div>
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Administration</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Enc.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Agreed&#160;to
by:&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;
</font></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">/s/&#160;Steve
Kelley</font><font id="TAB2" style="LETTER-SPACING: 9pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;&#160;</font>&#160;</font>&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
8</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">/8/08</font><font id="TAB2" style="LETTER-SPACING: 9pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;&#160;</font>&#160;</font>&#160;</font></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font size="2">&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#160;&#160;</font>&#160;&#160;
Steve Kelley<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date</font></div>
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          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">- 4
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>exhibit99_1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
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    <title>exhibit99_1.htm</title>
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    <div>&#160;</div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">Exhibit
99.1</font></font></div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
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              <tr>
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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"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic">For Immediate
      Release</font></font></font></div>
                </td>
                <td align="left" valign="top" width="47%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                </td>
              </tr>
          </table>
        </div>
      </div>
      <div>&#160;</div>
      <div>
        <div align="left">
          <table cellpadding="0" cellspacing="0" width="100%">
              <tr>
                <td align="left" valign="top" width="65%">
                  <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">Media
      Contact:</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="65%">
                  <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>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="65%">
                  <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">Corporate
      Communications</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="65%">
                  <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)
      313-5505</font></div>
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              </tr>
              <tr>
                <td align="left" valign="top" width="65%">
                  <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; TEXT-DECORATION: none">michelle_murray@cree.com</font></font></div>
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      <div><br></div>
      <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 Names Steve Kelley as Chief
Operating Officer</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="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">DURHAM,
N.C., AUGUST 19, 2008</font> &#8211; Cree, Inc. (Nasdaq: CREE), a market leader in LED
lighting, <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">announces
that Steve Kelley will join the company as executive vice president and chief
operating officer, effective today. In this newly created position, Kelley will
be responsible for business development, global manufacturing, technology and
administrative operations of the company.</font></font>
</font>
        <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;Steve's
breadth of experience and track record of success in the semiconductor business
will be a strong addition to the Cree leadership team as we drive the adoption
of energy-efficient LED lighting,&#8221; said Chuck Swoboda, Cree chairman and chief
executive officer.</font></div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#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">Kelley
comes to Cree after five years at Texas Instruments where he served as vice
president and general manager of the Standard Linear and Logic Group. Prior to
that, Kelley spent 10 years at Philips Semiconductors in various management
positions.</font></div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
        <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"><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. Cree is a market-leading innovator of lighting-class
LEDs, LED lighting solutions, and semiconductor solutions for wireless and power
applications.</font></div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#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">Cree&#8217;s
product families include recessed LED down lights, blue and green LED chips,
high brightness LEDs, lighting-class power LEDs, power-switching devices and
radio-frequency/wireless devices. 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; TEXT-INDENT: 0pt">&#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">For
additional product and company information, please refer to <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; TEXT-DECORATION: underline">www.cree.com</font>.</font></div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
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