| LED chip manufacturer Cree has signed a new long-term agreement with Osram Opto Semiconductors GmbH for the purchase of LED chips over a three-year period commencing June 27, 2005.
The two companies have a relationship dating back to the mid-nineties, and last announced a supply agreement in October 2003 (see Cree and Osram announce new supply contract).
The new agreement covers Cree's entire LED chip product line, including its standard, mid-bright and XBright LED families.
Pricing, product mix and volume have been agreed for an initial period - these will be reviewed and adjusted on a regular basis for the rest of the three-year term.
"Osram Opto Semiconductors fulfilled its previous purchase commitment far earlier than expected and this agreement reflects the way in which the two companies have conducted business over the past several quarters," said Chuck Swoboda, Cree's chairman and CEO.
Swoboda also said that the new agreement is designed to allow both Osram Opto and Cree to react quickly to changes in this dynamic industry. "This should increase our combined strength and enhance our ability to win new business," he said.
Ruediger Mueller, president and CEO of Osram Opto Semiconductors, said that his company's success in the market has been enhanced by the value of Cree's technology, flexibility and service. "Osram Opto Semiconductors places great importance on working with companies that provide leading technology that complements our expertise in LEDs and lighting." | 
