Cree Gets Microvision Funding for Laser, LED Development

DURHAM, N.C., Mar. 22 -- Cree Inc. has received a commitment from Bothell, Wash.-based Microvision Inc. for an additional $10 million in funding for further development of light-emitting diodes and continuous-wave blue and green laser devices used in mobile handsets and headsets for the wireless Internet market. The terms of the amended agreement call for Microvision to extend the development program for an additional two-year period. The original agreement -- signed in May 1999 -- provided for a one-year commitment with a one-year extension at Microvision's option.
Neal Hunter, chairman and CEO of Cree, commented, This partnership has afforded us the opportunity to achieve and reach new milestones in our light source development efforts. This additional funding will help us to expand our technology for inclusion in new state-of-the art applications, including mobile Internet handsets and other applications. We are excited to renew our alliance with Microvision and look forward to the opportunity to intensify ourdevelopment efforts.
Cree also has agreed to expand its equity position in Microvision; Cree and General Electric Pension Trust are to invest $12.5 million each in Microvision's common stock. The amended development agreement will take effect upon the closing of the transaction.