May 26, 2005... Sumitomo Corp. Signs $200 Million Agreement With Cree for Fiscal 2006, Up 25 Percent From Prior Year
Durham, North Carolina USA-- Cree, Inc. announced that its Japanese distributor, Sumitomo Corp., has agreed to purchase $200 million of Crees light emitting diode (LED) products during Crees fiscal year ending June 2006, subject to end-customer demand And other terms and conditions. This is the embodiment of the purchase of the original distributorship agreement, which extends through Crees fiscal year ending June 2007. Both companies anticipate that purchases will be made across Crees full line of LED chip products representing its standard brightness, mid -brightness and high brightness devices, including MegaBright, XBright, and XThin LEDs.
Cree continues to provide the new products and cutting-edge technology our customers require, states Koichiro Kusano, Assistant General Manager of Sumitomos Electronics Division. These continued advances in performance, combined with Crees respected intellectual property, allow Sumitomo to continue to expand our market share Through increasing penetration in growing application segments like LCD backlighting.
The renewal of our agreement and increased purchase commitment reflects the growth we are forecasting in Japan and highlights the strength of our partnership with Sumitomo and our Japanese customers, stated Chuck Swoboda, Crees Chairman and Chief Executive Officer.
About Sumitomo Corporation
Sumitomo Corporation conducts commodity transactions in virtually all industries utilizing its comprehensive worldwide network. The companys expertise in international finance, project management, new business development and investment is recognized throughout Japan and positions it as one of the premier trading organizations in the world.
About Cree, Inc.
The product includes blue and green light emitting diodes (LEDs) And radio frequency (RF) and microwave devices. The company is currently developing near ultraviolet lasers. Targeted applications for these products include solid-state illumination, power switching, wireless infrastructure and optical storage. Cree understands the important convergence of science, technology and creativity , placing high value on ideas, as well as the energy and ability of its people. For more information on Cree, please visit .
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 the possibility we may be unable to Manufactured the volume of products required to fulfill contracted demand in a timely manner due to technological or manufacturing difficulties; the risk that demand for our products may not increase or may decrease; the ability of Sumitomo to decrease or terminate its purchase commitment under certain circumstances, So that the actual amount purchased may be substantially less than $200 million, and its ability to rotate limited quantities of inventory acquired under the agreement; the rapid development of new technology and competing products that may impair demand or render our products obsolete; the potential lack Of customer acceptance for the products; and other factors discussed in Crees Filings with the Securities and Exchange Commission, including its report on Form 10-K for the year ended June 27, 2004 and subsequent filings. 