Cree and AWR Offer GaN MMIC Process Design Kit for Microwave Office Design Suite

Cree, Inc. (Nasdaq: CREE) and Applied Wave Research, Inc. (AWR) announced today the availability of a process design kit (PDK) supporting Cree’s high-power gallium nitride (GaN) process. The kit, announced at the 2007 IEEE MTT-S International Microwave Symposium, enables monolithic microwave integrated circuit (MMIC) designers to use Cree’s GaN MMIC process within AWR’s Microwave Office software environment. Designers can now improve productivity by applying AWR’s industry-leading, open and integrated design platform to Cree’s wide bandgap (WBG) GaN MMIC foundry services and discrete products. "Cree is committed to making its industry-leading WBG MMIC technologies accessible to our foundry customers,” said Jim Milligan, Cree’s business area manager of RF Products. "The release of this kit is an important adjunct to the silicon carbide (SiC) PDK we successfully released last summer. Our customers will now be free to optimally match the unique attributes of both our GaN and SiC foundry processes to their specific application needs. We are pleased to again be working with AWR to provide this enabling design capability.” Wide bandgap technologies are rapidly being adopted for next-generation commercial and military applications as they enable higher efficiency and greater operating bandwidth than other available device technologies. "When it comes to WBG MMIC products and services, Cree is at the leading edge of the market,” said Dane Collins, AWR CEO. "The open Microwave Office 2007 design platform integrated with this Cree PDK can be of great benefit to our mutual customers and to the high-frequency design community as a whole. We look forward to continuing our alliance with Cree to work to address current and future challenges in WBG MMIC power amplifier design.” About Cree, Inc. 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. Key to Cree’s market advantage is its world-class materials expertise in SiC and GaN for chips and packaged devices that can handle more power in a smaller space while producing less heat than other available technologies, materials and products. Cree drives its increased performance technology into multiple applications, including exciting alternatives in brighter and more-tunable light for general illumination, backlighting for more vivid displays, optimized power management for high-current, switch-mode power supplies and variable-speed motors, and more-effective wireless infrastructure for data and voice communications. Cree customers range from innovative lighting fixtures makers to defense-related federal agencies. Cree’s product families include blue and green LED chips, lighting LEDs, LED backlighting solutions, power-switching devices and radio-frequency/wireless devices. For product specifications, please refer to www.cree.com. About Applied Wave Research, Inc. Applied Wave Research is a leading supplier of high-frequency electronic design automation (EDA) products for the design of wireless telecommunications equipment, semiconductors, high-speed computers, networking systems, automotive mobility systems, and a variety of other electronics-based products. AWR is a privately held company with global development offices, sales offices, training centers and distribution channels. In September 2005, AWR acquired APLAC Solutions, an emerging leader in simulation and analysis software for analog and radio-frequency (RF) design. APLAC’s RF design technology has been used in designing over 30 percent of all mobile phone RF integrated circuits (ICs) worldwide. AWR today has over 700 customers worldwide, including virtually every major high-frequency electronic component and system supplier. The company is headquartered at 1960 East Grand Avenue, Suite 430, El Segundo, CA 90245. For more information about AWR and the company's products, please visit www.appwave.com or call 310-726-3000. 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, such as the rapid development of new technology and competing products that may impair demand or render our products obsolete; the risk of uncertain demand and potential lack of customer acceptance for our products and services; 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 25, 2006, and subsequent filings. Cree is a registered trademark of Cree, Inc. AWR and Microwave Office are registered trademarks of Applied Wave Research, Inc.