Lextar and Cree, Inc. Announce LED Cooperation

Lextar Electronics Corp., a vertically-integrated LED company from Taiwan, and Cree, Inc. announced that the companies have entered into an agreement whereby Cree will make an investment in Lextar and the companies will enter into a supply agreement for sapphire-based LED chips.  As part of the agreement, Cree will invest approximately $83 million to purchase 83 million Lextar shares at a price of NT$30 per share.  Lextar and Cree will also enter into a long-term LED chip supply agreement, as well as an agreement for certain Cree LED chip and component intellectual property.  Upon closing of the investment, Cree will own approximately 13% of Lextar, becoming Lextar's strategic customer in lighting market.