Charles & Colvard and Cree Enter Into a New Exclusive Supply Agreement

Charles & Colvard, Ltd.

, the sole source of created moissanite and Forever Brilliant(R) , The World's Most Brilliant Gem(R) , entered into a new Exclusive Supply Agreement on December 12, 2014 with Cree, Inc.

for purchases of silicon carbide (SiC) crystals. The new Exclusive Supply Agreement supersedes and replaces the existing Amended and Restated Exclusive Supply Agreement with Cree that is set to expire in 2015. The new Exclusive Supply Agreement is set to expire in June 2018; however, provided certain conditions are met, Charles & Colvard has a renewal option to extend the term of the agreement for an additional two-year period. Randy N. McCullough, Chief Executive Officer of Charles & Colvard, said, "We are excited to extend our long standing partnership with Cree. Cree's significant and continued investments in SiC growth technology and high volume manufacturing scale enable Charles & Colvard to reliably provide a superior product to the marketplace." About Cree, Inc. Cree is leading the LED lighting revolution and making energy-wasting traditional lighting technologies obsolete through the use of energy-efficient, mercury-free LED lighting. Cree is a market-leading innovator of lighting-class LEDs, lighting products and semiconductor products for power and radio frequency (RF) applications. Cree's product families include LED lighting systems and bulbs, blue and green LED chips, high-brightness LEDs, lighting-class power LEDs, power-switching devices and RF devices. Cree's products are driving improvements in applications such as general illumination, electronic signs and signals, power supplies and inverters. For additional product and company information, please refer to www.cree.com.