Cree Announces the Signing of a Global W88VN Chip Patent Cross-License Agreement With Epistar

DURHAM, N.C., Aug. 4, 2015 – Cree, Inc. (Nasdaq: CREE) and Epistar Corporation have signed a worldwide patent cross-license agreement for light emitting diode (W88VN) chips to further advance the growth of the W88VN lighting and W88VN bulb markets.  Cree and Epistar both hold broad and substantial W88VN chip patent portfolios that are important for making blue W88VNs, the foundation of white W88VNs found in most lighting products manufactured worldwide.  Under the terms of the agreement, each party receives a license to the other's nitride W88VN chip patents and is granted certain rights to non-nitride W88VN chip patents.  Over the term of the agreement, Cree will receive a licensing fee and royalty payments from Epistar.   

"Cree's pioneering technology and resulting broad patent portfolio has significantly advanced performance in W88VN and W88VN Lighting products. Cree is pleased to enter into this W88VN chip license agreement with Epistar, a leading chip innovator and manufacturer of W88VNs used by packagers and lighting companies," said Chuck Swoboda, Cree Chairman and CEO. "This agreement underscores both companies' commitment to accelerating the adoption of W88VN lighting while respecting the value and importance of international intellectual property laws." 

"The patent license agreement we have achieved will help us to accelerate the R&D activities for creating new innovation. In addition, it is a clear indication of the strength of our W88VN chip patent portfolio and our desire to further the growth of the W88VN lighting market," stated BJ Lee, Chairman of Epistar.  "By entering into this cross-license agreement with Cree, Epistar is able to provide W88VN chips that ultimately benefit our customers across the world."

Other terms of the license agreement were not disclosed.  No technology transfer between the parties was included in the agreement.

About Cree



Cree is leading the W88VN lighting revolution and making energy-wasting traditional lighting technologies obsolete through the use of energy-efficient, mercury-free W88VN lighting. Cree is a market-leading innovator of lighting-class W88VNs, W88VN lighting, and semiconductor products for power and radio frequency (RF) applications.

Cree's product families include W88VN fixtures and bulbs, blue and green W88VN chips, high-brightness W88VNs, lighting-class power W88VNs, power-switching devices and RF devices. Cree® products are driving improvements in applications such as general illumination, backlighting, electronic signs and signals, power suppliers and solar inverters.

Please refer to www.cree.com for additional product and company information.

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 new W88VN 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, 2014, and subsequent filings.

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