Exhibit 99.01
FOR IMMEDIATE RELEASE NEWS RELEASE
Contact: Fran Barsky
Investor Relations Manager
Cree, Inc.
(T) 919-313-5397
(F) 919-313-5615
Fran_Barsky@Cree.com
CREE ANNOUNCES RESULTS OF
SPECIAL COMMITTEE INVESTIGATION
Durham, NC, October 10, 2003-Cree, Inc. (Nasdaq: CREE) today announced that the
special committee of its Board of Directors has completed its previously
announced investigation into allegations of corporate wrongdoing made by Eric
and Jocelyn Hunter in court filings and otherwise. The special committee's
report, delivered to the full Board of Directors, states: "[T]he Committee did
not discover any evidence to support any of the allegations contained in [the
Hunters'] Complaint or pre-litigation correspondence. Based on the
Investigation, the Committee concludes all of the allegations lack merit."
The special committee was established by Cree's Board on June 14, 2003. The
committee was composed of independent directors who retained independent legal
counsel to assist and advise the committee in its investigation. The special
committee issued its report after more than three months of intensive
investigation, which included examining over 50,000 pages of documents and
conducting more than 25 interviews.
Cree also noted that the Hunters stated in a court filing Thursday that they
have decided to dismiss without prejudice their claims alleging federal
securities fraud and unfair or deceptive trade practices. As to the remaining
claims contained in the Complaint, the Hunters opposed Cree's motion to dismiss
which is pending before the court.
Cree is an advanced semiconductor company that leverages its expertise in
silicon carbide, gallium nitride and silicon materials technology to produce new
and enabling semiconductors. The products include blue, green and near
ultraviolet (UV) light emitting diodes, near UV lasers, radio frequency and
microwave devices, and power switching devices. Applications for these products
include solid state illumination, optical storage, wireless infrastructure and
power switching. For more information on Cree, please visit www.cree.com.
Statements in this press release that are not solely historical in nature may
constitute "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements
involve risks and uncertainties, both known and unknown, which may cause actual
results to differ materially due to a number of factors, including risks
associated with our pending securities and other litigation, such as the
considerable management time and attention required and substantial expenses
incurred regardless of its outcome and the potential negative impact on our
operations and financial statements of an adverse result, including with respect
to our pending motion to dismiss. In addition, the Securities and Exchange
Commission has requested that we provide information in response to an informal
inquiry. The outcome of the Securities and Exchange Commission inquiry also
could adversely affect our business and financial statements. The conclusions of
either the pending Hunter or class action litigation or the Securities and
Exchange Commission inquiry could be different than the conclusions of the
special committee. The conclusions of the special committee are based on the
information reviewed by the committee and are limited to matters alleged by the
Hunters in the complaints and in certain pre-litigation correspondence. The
company is also subject to other risks discussed in our filings with the
Securities and Exchange Commission, including our report on Form 10-K for the
year ended June 29, 2003 and prior and subsequent reports.
Cree and the Cree logo are registered trademarks of Cree, Inc.
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