(Durham, N.C.) Cree, Inc. (Nasdaq: CREE), and Philips (NYSE:PHG)(AEX: PHI) have signed a comprehensive, worldwide patent cross-license agreement designed to further accelerate the growth of the LED lighting market.

Cree and Philips both hold broad and substantial optoelectronic patent portfolios which are important to their respective businesses. This agreement covers patents from both parties in the fields of blue LED chip technology, white LEDs and phosphors (including remote phosphors), control systems, LED luminaires and lamps as well as LED backlighting of liquid crystal displays (LCDs) and patents in the Philips LED Luminaire Licensing Program.

“This agreement demonstrates the breadth and depth of both companies’ intellectual property, as well as the fundamental nature and value these patents bring to the market,” said Chuck Swoboda, Cree chairman and CEO. “It also signals both companies’ commitment to growing the LED market while respecting the value and importance of international intellectual property laws.”

“Philips and Cree have significantly invested in innovation in LED lighting solutions. The wide-ranging IP portfolios of the respective companies reflect the outcome of this effort,” said Rudy Provoost, chief executive officer of Philips Lighting. “We wish to see the accelerated adoption of LED lighting, and are therefore delighted that Cree will be joining our LED Luminaire Licensing Program.”

About Cree

Cree is leading the LED lighting revolution and setting the stage to obsolete the incandescent light bulb through the use of energy-efficient, environmentally friendly LED lighting. Cree is a market-leading innovator of lighting-class LEDs, LED lighting, and semiconductor solutions for wireless and power applications.

Cree’s product families include LED fixtures and bulbs, blue and green LED chips, high-brightness LEDs, lighting-class power LEDs, power-switching devices and radio-frequency/wireless devices. Cree solutions are driving improvements in applications such as general illumination, backlighting, electronic signs and signals, variable-speed motors, and wireless communications.

For additional product and company information, please refer to www.cree.com. To learn more about the LED Lighting Revolution, please visit www.creeledrevolution.com.

About Royal Philips Electronics

Royal Philips Electronics of the Netherlands (NYSE: PHG)(AEX: PHI) is a diversified health and well-being company, focused on improving people’s lives through timely innovations. As a world leader in healthcare, lifestyle and lighting, Philips integrates technologies and design into people-centric solutions, based on fundamental customer insights and the brand promise of “sense and simplicity”. Headquartered in the Netherlands, Philips employs approximately 116,000 employees in more than 60 countries worldwide. With sales of EUR 23 billion in 2009, the company is a market leader in cardiac care, acute care and home healthcare, energy efficient lighting solutions and new lighting applications, as well as lifestyle products for personal well-being and pleasure with strong leadership positions in flat TV, male shaving and grooming, portable entertainment and oral healthcare. News from Philips is located at www.philips.com/newscenter.