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To: Walter High who wrote (913)	10/31/1998 12:34:00 PM
From: Ron	Read Replies (1) \| Respond to of 10714

Walter I sold CREE when it hit major short term resistance point at 27. But will buy back in and hold when it drops..which I believe it will, of course, or I wouldn't have sold. Good luck to all. Ron

To: Walter High who wrote (913)	11/3/1998 9:37:00 PM
From: Ron	Read Replies (1) \| Respond to of 10714

CREE annual meeting was straightforward, and as expected, very optimistic. CEO Neal Hunter said it has been a "tremendous year", noting that CREE now holds 51 U.S. and 32 foreign patents...and supplies 90 to 95% of world demand for silicon carbide. He said CREE this year managed to trim wafer production cost by 50%..and is striving for similar cost reductions in coming year. Several commercial uses for CREE-produced LED's that I did not know: For example, dashboard backlighting for Volkswagon (Siemens)..traffic signals are a huge new market..the LEDs last much longer than lights.. Major new R & D has produced good results for CREE's blue laser..they expect it to be available commercially by 2000, forsee $2 Billion market for blue lasers by 2006. The blue laser reads data much more efficiently than red..so major potential for computer applications, CD's, DVDs, video disks, etc. Hunter also said he believed CREE's major competitor in blue lasers has "hit the wall" because they use a sapphire base and are having problems with it, and have probably gone back to the drawing board. He believes each of CREE's production branches has the potential to be larger than all of CREE currently within a few years due to market growth and demand. They employ 275 employees now, project 350 next year. Plant is now at 80% capacity, will probably have to start work on a new fab by end of next year. Hunter also acknowledged they have gotten inquiries from larger companies..but expressed hope CREE will not be acquired because of the current team, R & D, production and sales momentum. The displays included a large LED video board outside the CREE building featuring a company video and CNBC. It was amazing because the further back you were from it...the sharper it looked. Would be a great display for Times Square and the Eiffel Tower board :) Neal Hunter said he understood moissanite gem partner C3 expects to have 2000 distributors for the gems in two years, and that one Raleigh area jeweler reports 50% of revenues now coming from the gems. A CTHR employee on site told me the moissanite gems are harder than sapphires, so they would be the second hardest gems, next to the diamond. Impressive gem display case. Hunter said he is comfortable with .84 earnings estimates for current year..and noted the first quarter has been "terrific". I did not realize the many applications for silicon carbide..including microwaves, wireless base stations, power switches (big power company market) and of course LEDs. One last note for CTHR fans, Hunter said their contract with C3 is EXCLUSIVE, for I believe...15 years..so no worries about competition for C3. "Wear the Gemstone..feel the fire" : ) <<<GGG If I mis-stated anything..or left anything major out...Walter, and others feel free to jump in and comment. (Finally, I have to note that since I live near CREE, I have over the past year, visited with a number of CREE employees who did not know I was a stockholder. They are generally a very bright bunch, and morale is good.) Cheers.. Ron