April 9, 2002 – Durham, NC – Cree Inc. plans to open a Japan office in Tokyo to bring Cree’s technology and engineering support closer to the Japanese customer.
In connection with the opening of the office, Sumitomo Corp. has been named as Cree’s strategic partner and has entered into agreements with Cree to purchase approximately $24 million of Cree’s LED products over a 15-month period ending June 2003, based on customer demand and subject to the terms and conditions of the new agreements. The agreements are primarily for the purchase of Cree’s MegaBright and XBright LEDs.
This new partnership will replace Cree’s existing distributorship arrangements in Japan effective in June 2002.
Sumitomo will have exclusive distribution rights in Japan to Cree’s LED chip products and silicon carbide wafer products for a minimum of three years. Cree Japan personnel will work with and support the sales activities of the Sumitomo team dedicated to the Cree product line.
The office is scheduled to open during the quarter ending June 2002.