Cree Signs $160M Deal With Sumitomo

DURHAM, N.C., May 18 -- Sumitomo Corp. has agreed to purchase $160 million of Cree Inc.’s LED products during Cree’s fiscal year ending June 2005.

Chuck Swoboda, Cree's president and CEO, said the agreement is the largest purchase commitment in Cree's history. Cree and Sumitomo also announced the extension of the current distributorship relationship through Cree’s fiscal year ending June 2007. The companies anticipate that the purchases will cover Cree’s full line of LED products representing its standard-brightness, mid-brightness and high-brightness devices, including MegaBright, XBright and XThin LEDs.

"We believe the growth in Japan is representative of the strong worldwide demand for our LEDs. New products are driving end customer demand and helping us expand our relationships with the major LED packagers," Swoboda said.

For the nine months ended in March, LED sales accounted for 78 percent of the company's $216 million in revenue, according to Fran Barsky, a Cree spokeswoman, in Raleigh's Triangle Business Journal.

The deal is subject to customer demand and other terms and conditions.

Cree is a Durham-based semiconductor company. Tokyo-based Sumitomo Corp. is the parent of 20 companies that conduct business in industries including electronics, finance, chemicals and machinery. One of those companies is Sumitomo Electric Lightwave, based in North Carolina's Research Triangle Park.

For more information, visit: www.cree.com