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To: Cosmo Daisey who wrote (6482)	11/19/2002 8:24:12 AM
From: John Carragher	Read Replies (2) \| Respond to of 10713

Cree Microwave Announces a $5 Million Settlement With Spectrian Corporation Tuesday November 19, 8:05 am ET SUNNYVALE, Calif., Nov. 19 /PRNewswire-FirstCall/ -- Cree Microwave, Inc., a wholly-owned subsidiary of Cree, Inc. (Nasdaq: CREE - News) and a leader in manufacturing high-power, high-performance laterally diffused metal-oxide silicon (LDMOS) RF power semiconductors for the wireless industry, today announced that it has entered into a settlement agreement with Spectrian Corporation. Under the terms of the agreement, Spectrian agrees to pay Cree Microwave $5 million in exchange for the termination of the parties' December 2000 Purchase and Supply Agreement that was scheduled to expire in June 2003. Todd Tucker, Cree's Executive Vice President, Operations and Cree Microwave's President stated, "This settlement is an important step for Cree Microwave as it allows our resources to focus entirely on new customer development and move forward with the deployment of LDMOS 8 devices, modules and other advanced products into the market. Our relationship with Spectrian remains good; however, the demands under the Purchase and Supply Agreement are no longer advantageous for either party. We continue to aggressively target new Tier 1 and Tier 2 customers as we have proven that our products meet or exceed industry standards" Cree also reported that its revenue and earnings targets for the current quarter remain unchanged from those previously announced. As a result of this settlement, Cree targets little or no revenue from Spectrian during the second quarter ended December 29, 2002. Cree Microwave designs, manufactures and markets a complete line of high- quality, customizable and cost-effective radio frequency (RF) power semiconductors, the critical component utilized in building wireless power amplifiers for cellular and personal communications services (PCS) infrastructure. The company designs and manufacturers laterally diffused metal-oxide silicon (LDMOS) and bipolar power semiconductors for operation up to 2.4 GHz. For more information, visit the Cree Microwave web site at www.creemicrowave.com or call 408-745-5700. Cautionary Statement of Cree, Inc. This press release contains forward-looking statements about Cree's business involving risks and uncertainties that may cause actual results to differ materially from those indicated. Actual results could differ due to a number of factors, including risks associated with the production ramp-up for new products; risks the company may be unable to achieve necessary improvements to these products as well as the possibility of unexpected delays or other difficulties in ramping up production of the new products; risks resulting from the concentration of our business among few customers including the risk that customers may reduce or cancel orders or fail to honor purchase commitments; uncertain product demand; risks from increased competition; uncertainty regarding economic conditions; uncertainty whether we can achieve our targets for increased yields and cost reductions needed to protect our margins; risks that our investments in third parties will generate losses; 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 30, 2002. Make Your Opinion Count - Click Here