EXHIBIT 99.1


Contact: Raiford Garrabrant
         Director, Investor Relations
         Cree, Inc.
         raiford_garrabrant@cree.com
         (T) 919-313-5397
         (F) 919-313-5615


            CREE ANNOUNCES RESIGNATION OF ITS CHIEF FINANCIAL OFFICER

Durham,  NC, August 11, 2005 -- Cree, Inc.  (Nasdaq:  CREE) announced today that
Cynthia B. Merrell,  who has served as the company's Chief Financial Officer and
Treasurer  since  1998,  has  submitted  her  resignation  to the  company.  The
resignation  will be effective  when a successor  CFO takes office but not later
than mid-February  2006. Ms. Merrell has agreed to assist in the transition to a
new CFO.

"It was a  difficult  decision  to  leave  Cree  as I have  truly  enjoyed  both
professionally and personally almost nine years with the company.  However,  due
to the changes in the public corporate environment in recent years and my desire
to spend more time with my family,  I have decided to pursue new  challenges for
the next part of my career," Ms.  Merrell  stated.  "With the  completion of the
first   assessment   of  our  internal   controls   under  section  404  of  the
Sarbanes-Oxley  law of 2002 and the  dismissal  of the  securities  lawsuit last
week, I believe that the timing of my  resignation is appropriate as the company
is well positioned for it's next phase of growth."

Commenting on Ms. Merrell's resignation, Chuck Swoboda, Cree's Chairman and CEO,
stated,  "Cindy has been an important part of Cree's growth and success over the
last nine years and she has helped position Cree for continued success.  We wish
her well in her future endeavors."

About Cree, Inc.

Cree is an advanced  semiconductor  company  that  leverages  its  expertise  in
silicon carbide (SiC) and gallium nitride (GaN) materials  technology to produce
new and  enabling  semiconductors.  The  products  include  blue and green light
emitting  diodes  (LEDs),  packaged  LEDs,  power  switching  devices  and radio
frequency (RF) and microwave devices.  The company is currently  developing near
ultraviolet  lasers.  Target  applications  for the company's  products  include
solid-state   illumination   and   backlighting,   power   switching,   wireless
infrastructure and optical storage.  Cree understands the important  convergence
of science,  technology and creativity,  placing high value on ideas, as well as
the energy and ability of its people. For additional information regarding Cree,
please visit www.cree.com.

This press release contains forward-looking statements involving risks and
uncertainties, both known and unknown, that may cause actual results to differ
materially from those indicated, including uncertainty regarding the timing and
outcome of its search for a new CFO, 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 27, 2004, and subsequent filings.

Cree and the Cree logo are registered trademarks of Cree, Inc.