Durham, N.C., March 25, 2004--Cree has entered into a definitive agreement to acquire the gallium nitride (GaN) substrate and epitaxy business of Advanced Technology Materials (Danbury, CT), through an asset purchase transaction. Under terms of the agreement, Cree will purchase the assets of the business, including related intellectual property, fixed assets and inventory, in exchange for cash. The parties anticipate that the deal will close during the fourth quarter of Cree's fiscal year, which ends in June.

"We believe ATMI's GaN substrate and epitaxy capability will complement Cree's existing silicon carbide and GaN materials business," said Chuck Swoboda, CEO and president of Cree. "In addition, this acquisition provides Cree with fundamental IP related to GaN substrates and epitaxy technology which is synergistic with our existing patent portfolio in the optoelectronic, materials and microwave areas."

In related news, Cree and Boston University (BU; Boston, MA) reached a settlement with AXT (Fremont, CA) in the patent-infringement lawsuit brought against AXT last June for infringement of US Patent #5,686,738. The patent, which Cree licenses from BU on an exclusive basis, relates to technology developed by Boston University professor Theodore Moustakas directed to GaN-based buffer layers used with sapphire and other substrates. Cree and the University alleged infringement based on light-emitting diodes previously manufactured by AXT, and AXT asserted various counterclaims. The parties have agreed to dismissal of all claims and counterclaims. Financial terms were not disclosed.

Fri Mar 26 11:04:00 CST 2004