1. Solid State Lighting Revolution
January 2010
Jovani Torres

2. Disclosure: Forward-Looking Statements
This presentation includes forward-looking statements about Cree’s business outlook, future financial results, product markets, plans and objectives for future operations, and product development programs and goals. These statements are subject to risks and uncertainties, both known and unknown, that may cause actual results to differ materially, as discussed in our most recent annual and quarterly reports filed with the SEC.
Important factors that could cause actual results to differ materially include current uncertainty in global market conditions that could negatively affect product demand, collectability of receivables and other related matters; our ability to successfully develop new products; our ability to lower costs; increasing price competition; the complexity of our manufacturing processes and the risk of production delays and higher than expected costs; risks associated with the ramp-up of production for new and existing products; the rapid pace of technology development that could affect demand; and the difficulty of estimating future market demand for our products.
The forward-looking statements in this presentation were based on management’s analysis of information available at the time the presentation was prepared and on assumptions deemed reasonable by management. Our industry and business are constantly evolving, and Cree assumes no duty to update such forward-looking statements to reflect subsequent developments.

3. Cree Founded in 1987 Global Reach Public since 1993 (Nasdaq: CREE)
Headquartered in Durham, NC
Global Reach
11 Major Locations
3,200 Employees
Fiscal 2009 Revenues $567M

4. Cree LED Businesses Market Opportunity LED Lighting
Lead the market & accelerate adoption
Create demand/pull for LED lighting
LED Components
Drive Revenue
Enable the market with “lighting-class” LEDs
LED Chips
Technology to enable components
LED Components
LED Chips
Materials
pg. 4

5. Cree Mission
Lead the LED Lighting Revolution and obsolete energy-inefficient light bulbs
pg. 5

6. It’s Happening Faster Than You May Think…
Global General Illumination Market**
Revenue (Billions)
Conventional Lighting
LED Lighting
** Source: Philips Lighting

7. …A Brief History of Lighting
1901
Fluorescent Tube
~1990
“High Brightness” Red, Orange, Yellow, & Green LEDs
2000
White LED Lamp demonstrates Incandescent Efficacy (17 lm/W)
2009
Production White LED Lamp Exceeds 100 lm/W
1879
Edison Light
Bulb
1919
Sodium Vapor Lamp
1970s
First Red LED
2005
White LED Lamp demonstrates Fluorescent Efficacy (70 lm/W)
1995
“High Brightness” Blue, Green LEDs
U.S. 223,898
Monochrome
signs
Calculators and
Indicators
Full Color Signs
Solid State Lighting
Current lighting technology is over 120 years old
LEDs began as just indicators, but are now poised to become the most efficient light source ever created

8. Brief History of LEDs 1955 – RCA reports IR emission using GaAs
1961 – TI gets patent for IR LED
1962 – GE develops first visible LED
1968 – Monsanto develops first commercially available LEDs for HP35 calculator
1970’s - GaP-based red, green and yellow
1980’s – AlGaAs/AlInGaP red and amber LEDs
1990’s – InGaN LEDs and YaG phosphor
2000’s – White LEDs for SSL

9. Basic Advantages of LED Light
LEDs are…very energy efficient  >100LPW (near-term roadmap to >150LPW…)
Are directional  No wasted light, any pattern possible
Have very long lifetime  >50,000 hours to 70% Lumen Maintenance (L70)
Are inherently rugged  No filament to break
Start instantly  nanoseconds vs. > 10 min re-strike (HID)
Are environmentally sound  no Hg, Pb, heavy metals
Are infinitely dimmable, controllable  New lighting features, power savings
Love cold temperatures  No cold starting issues

10. Effects of Mercury on the Environment
Forever.*
One teaspoon of mercury can contaminate a 20 acre lake
Each year, an estimated 600 million fluorescent lamps are disposed of in U.S. landfills amounting to 30,000 pounds of mercury waste.*
The mercury from one fluorescent bulb can pollute 6,000 gallons of water beyond safe drinking levels.* *

11. LED Technology LED Chip Phosphor system Package
Determines raw brightness and efficacy
Phosphor system
Determines color point and color point stability
Package
Protects the chip and phosphor
Helps with light and heat extraction
Primary in determining LED lifetime

12. Current LED Lighting Applications
Lumens
LPW
Lumens/$

13. Why LED Lighting?
The widespread use of LEDs over the next 10 years can:
Save energy (Good)
Save money
Help protect the environment (Green)
LED lighting can reduce electricity needs for lighting by more than 60%

14. Why LED Lighting?
Lighting 22%
US Electricity
Consumption
Commercial 59%
Industrial %
Residential 27%
LED lighting can reduce electricity needs for lighting by more than 60%

15. DOE Roadmap US Department of Energy 2009 Multi-Year Plan for SSL
Cree cool white production
Cree warm white production
US Department of Energy 2009 Multi-Year Plan for SSL

16. Haitz’s Law

17. How the Roadmap Really Works: Chip Improvement
150
Next Generation
350mA (lumens)
100
Current Generation 50
Last Generation
Time
Major leaps forward on LF depends on major chip improvements
Incremental chip improvements, phosphor efficiency, and learning curve historically improves 1-2 LF bins as well

18. LED Performance Continues To Increase
Light Source Efficiency Trends
? yrs
186 LPW
131 LPW
R&D Announcement
LED
161 LPW
~2 yrs
3 yrs
XP-G
HID
XP-E
Linear
Fluorescent
CW Lumens/watt
High Volume Production
XR-E
XR-E
CFL
Incandescent
pg. 18