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Nichia Announces Expanded Patent Cross License With Cree

ANAN, TOKUSHIMA, JAPAN, September 17, 2007 - Nichia Corporation today announced that Nichia and Cree, Inc. (Nasdaq: CREE) have entered into an agreement that expands their cross license arrangements announced in 2002 and 2005 to include additional patents relating to white LED technology and certain Cree patents relating to nitride lasers. The agreement also resolves infringement claims Nichia had asserted against LED products sold by COTCO International Limited, a subsidiary of COTCO Luminant Device Limited, prior to Cree's acquisition of COTCO Luminant Device Limited and its subsidiaries in March 2007.

Additionally, Nichia announced that Nichia and Cree have agreed to resolve any future patent disputes involving products of either company, or any affiliate in which it owns a controlling interest, through a process that eliminates any potential impact on customers. Customers may therefore purchase either Nichia or Cree products free of any concern that Nichia or Cree will make a claim of patent infringement against the customer based on the purchased product.

Other terms of the expanded cross license arrangements were not disclosed but are not expected to have any material financial effect on either party.

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