Cree Expands Distribution Agreement with Digi-Key to Include High-Performance Cree LEDs

THIEF RIVER FALLS, Minnesota, USA - September 17, 2008

Cree (Nasdaq: CREE), a market leader in LED lighting, and www.digikey.ie announced today that the companies have signed an agreement for the distribution of Cree's high-performance LEDs. Digi-Key, a broad-line distributor of electronic components and accessories since 1972, has been distributing Cree's energy-saving power components since 2007.

The global agreement covers the Cree LED portfolio, including the award-winning lighting-class XLamp® LEDs and the broad high-brightness portfolio, which includes round, oval, SMDs, and P4 LEDs. Cree LEDs are available through Digi-Key's top-rated website and will be added to future print catalogs.

"The addition of Digi-Key widens Cree's ability to reach growth markets for our LEDs," said Mark Despotes, Cree vice president of global channels. "Digi-Key has the expertise and the commitment to accelerate the adoption of LEDs – including the fast-growing lighting-class and high-brightness markets."

"By expanding our extensive catalog of products to now include Cree LEDs, we are able to offer customers access to this industry-leading technology," said Mark Larson, Digi-Key president and COO. "We're seeing increasing market demand for high-quality LEDs, and the Cree LED products are a key addition to our portfolio."

About Cree

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 retrofit solutions, and semiconductor solutions for backlighting, wireless, and power applications.

Cree's product families include recessed LED down lights, lighting-class power LEDs, high brightness LEDs, blue and green LED chips, 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.

For additional product and company information, please refer to Cree.

This press release contains forward-looking statements involving risks and uncertainties, both known and unknown, that may cause actual results to differ materially from those indicated. Actual results may differ materially due to a number of factors, including customer acceptance of LED products; the rapid development of new technology and competing products that may impair demand or render Cree's products obsolete; and other factors discussed in Cree's filings with the Securities and Exchange Commission, including its report on Form 10-K for the year ended June 29, 2008, and subsequent filings.

Cree and XLamp are registered trademarks of Cree, Inc.

About Digi-Key Corporation

Digi-Key Corporation, based in Thief River Falls, Minn., is a global, full-service provider of both prototype/design and production quantities of electronic components, offering more than three million products from over 650 quality name-brand manufacturers. With over one million products in stock and an impressive selection of online resources, Digi-Key is committed to stocking the broadest range of electronic components in the industry and providing the best service possible to its customers. Additional information and access to Digi-Key's broad product offering is available on the Digi-Key website.

Editorial Contact for Digi-Key Corporation
Steven G. Tsukichi
VP/Strategic Operations
Chief Marketing Officer
Digi-Key Corporation
Editorial Contact for Cree, Inc.
Michelle Murray
Corporate Communications
Cree
(919) 313-5505
michelle_murray@cree.com