Cree, Inc.,

On February 12th, 2006, Cree, Inc., a U.S.-based manufacturer of light emitting diode solid-state lighting components, and the City of Raleigh, the anchor city in a rapidly growing metro area, announced a city-wide initiative to test, deploy and promote LED technology focused on a variety of general lighting applications. The “LED City” initiative is designed to deliver the economic, environmental and usage benefits of LEDs to the residents of Raleigh.

Both Cree and Raleigh public officials expect the initiative to serve as a model for other cities that are considering implementing energy-efficient infrastructures. As the City of Raleigh sets the pace, other municipalities are invited to join the initiative in developing energy-efficient civic centers. Energy consumption in cities across the nation will be impacted as they see the benefit of LEDs and implement LED lighting themselves.

The first project of the “LED City” initiative in Raleigh is the installation of LED lighting in the City’s Municipal Building parking deck. Progress Energy, Raleigh’s primary electric utility provider, says the parking deck floor equipped with LED lights uses over 40 percent less energy than the standard lighting system. Raleigh plans to deploy LED lighting to serve a number of lighting applications, including garage and parking lot lights, street lights, architectural and accent lighting, portable lighting and pedestrian and walkway lighting over the next 18 months.

“The economic benefits for municipalities to invest in LEDs are clear – they save energy, reduce environmental impact and improve the quality of light. As leaders in one of America’s fastest growing cities, it’s our civic responsibility to invest in the future and ensure the highest possible quality of life and safety for our citizens in generations to come,” stated Charles Meeker, Raleigh mayor. “We believe that the cost savings and benefits of LED lighting are real and achievable today.”

“Today’s announcement represents a milestone toward large-scale adoption of clean, energy-efficient technologies,” commented Kateri Callahan, president of the Washington, D.C.-based Alliance to Save Energy (ASE). “Raleigh’s progressive commitment to becoming the first ‘LED City’ will no doubt serve as a model for other cities seeking to improve energy consumption and reduce negative impacts on the environment. We commend Cree and the City of Raleigh for helping support our mission of achieving a healthier economy, a cleaner environment and greater energy security.”

Cree’s “LED City” initiative is a landmark step toward providing the best lighting value for the citizens of Raleigh while serving as a model for other cities seeking to do the same. Each year the City spends roughly $8.9 Million on energy, some $1.5 Million of that estimated to be directly related to lighting on City-owned facilities. Even if this initiative results in a savings of only 20 percent (estimates of energy efficiencies on various fixtures using LED’s range up to 45 percent), this could save the City as much as $1.1 Million each year while reducing negative impact on the environment.

Cree is a market-leading innovator and manufacturer of semiconductors and devices that enhance the value of solid-state lighting, power and communications products by significantly increasing their energy performance and efficiency. In October 2006, Cree announced a breakthrough in LEDs with its XLamp 7090, which produces luminous flux of up to 160 lumens at 700 mA.