CREE LED LIGHTING - HEALTHCARE Gregg “Rudy” Ryberg, Director of Sales, Healthcare Feb 2014

© 2013 Cree, Inc. All rights reserved. Cree® and the Cree logo are registered trademarks of Cree, Inc.

Cree Company Mission LEAD THE LED LIGHTING REVOLUTION to obsolete energy-inefficient lighting

© 2013 Cree, Inc. Copyright © 2013, Cree, Inc All rights reserved.

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Company Overview

GLOBAL SCALE • 15 locations • 6,000 employees

Headquarters: Durham, NC USA

C R E E FA C T S Fiscal 2013 Revenues . . . . . . . . $1.39B Fiscal 2013 Op. Cash Flow . . . . $285M June 2013 Cash & Eq . . . . . . . .

$1B

Long-term Debt . . . . . . . . . . . . . . . . . . 0 © 2013 Cree, Inc. Copyright © 2014, Cree Inc. All rights reserved.

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Cree’s History of LED Lighting Leadership

1987 Cree founded

2004 First XLamp LEDs brought to market

’04

2006 First lighting class LED components

’06

’07

2008 Acquired LED Lighting Fixtures (LLF)

2009 Launched first halogen equivalent LED PAR lamp

’08

’09

1989 Commercialized the first blue LED

1995 Blue LEDs designed into all VW cars

© 2013 Cree, Inc. All rights reserved.

2007 First commercially viable LED downlight and complete line of exterior products

2008 First LED troffer to surpass fluorescent

2009 Broke 100 LPW LR6 downlight

2010 Broke 100 LPW for parking fixtures and troffer

’10

2011 Acquired Ruud Lighting (BetaLED)

’11

2011 Introduced next generation LED troffer

2012 Shortens payback with first $200 LED streetlight

’12 2012 Industry Leading 10-Year Warrant y

2013 The Biggest Thing Since the Lightbulb.™

’13 2013 New Luminous troffer

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2014 Cree Takes Control of Controls

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Why LED? The Rising Cost of Lighting Lighting accounts for

COMMERCIAL ENERGY EXPENDITURES

~20%

Lighting

20%

Space Heating

of total commercial energy expenditures

20%

Space Cooling Ventilation

4%

16%

5%

Typically greater than

1/3 of total electric bill

© 2013 Cree, Inc. All rights reserved.

Refrigeration Electronics

5%

Water Heating 12%

8%

Computers 10%

Other Source: Department of Energy, Buildings Energy Data Book, March 2011

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LED Lighting Advantages

• Creates noticeably better visual environments • Improves overall patient satisfaction • Ultra-efficient and virtually maintenance free • Significant energy & operational savings

• Supports sustainability and LEED efforts • Improves the bottom line!

© 2013 Cree, Inc. Copyright © 2013, Cree, Inc All rights reserved.

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The Cree LED Lighting Difference

• 25+ years of pioneering innovation and no distractions from other lighting technologies – Cree is completely dedicated to LED lighting • From dust…to device…to market…Cree’s vertical integration enables end-to-end development optimization

• Our 10-year limited warranty underscores Cree’s commitment to the long-term performance and reliability of our products

© 2013 Cree, Inc. All rights reserved.

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Cree LED Lighting Advantages

• Unmatched performance and superior LED light quality for your healthcare facility • Numerous healthcare customer testimonials of energy savings and superior illumination from Cree LED lighting solutions

© 2013 Cree, Inc. Copyright © 2013, Cree, Inc All rights reserved.

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Improve Your Facility – Inside & Out Cree offers a complete line of LED solutions- precision lighting for clinical spaces, soft ambient lighting for visitor and patient areas and bright outside parking and pathway illumination.

INDOOR

OUTDOOR

• Troffers

• Parking Structure

• Downlights

• Pathway

• Suspended Linear

• Canopy

• Controls

• Flood

• Lamps

• Security

© 2013 Cree, Inc. Copyright © 2013, Cree, Inc All rights reserved.

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Key LED Lighting Applications

Clinical Areas

Patient Areas

Visitor Areas

Outdoor Areas Areas

• Clinical Spaces

• Nursing Stations

• Waiting Areas

• Parking Areas

• Critical Care

• Patient Rooms

• Lobby Area

• Canopies

• Surgical Areas

• Corridors

• Restrooms

• Building Entrance

• Labs / Radiology

• Public Areas

• Cafeteria

• Ambulance Lot

© 2013 Cree, Inc. Copyright © 2013, Cree, Inc All rights reserved.

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Better Lighting for Better Health

Improving Patient Experiences: • Dimming controls and multiple color temperatures • Non-glare lighting with quiet ceiling optics

Improving Patient Outcomes: • High CRI = more accurate clinical evaluations • Balance of bright lighting for staff and patient circadian rhythms

Improving Patient & Visitor Safety: • Better visibility reduces risk of falls • Fire safety - reduction of waste heat and circuit loading

© 2013 Cree, Inc. Copyright © 2013, Cree, Inc All rights reserved.

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Efficient Lighting for a More Efficient Hospital

• Up to 60% more efficient than incumbent technology* • Impressive ROI Returns; Initial investment payback in many cases is less than 2-years • Significantly reduced maintenance expenses backed up by a 10-year warranty

• Increased security due to balanced distribution of light

*Hospital Energy Alliance, 2012 Annual Report © 2013 Cree, Inc. Copyright © 2013, Cree, Inc All rights reserved.

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Cree TrueWhite® Technology Advantage

Cree TrueWhite® Technology is best in class color quality along with color accuracy and consistency, providing exceptional energy performance

High Efficacy

High CRI

© 2013 Cree, Inc. All rights reserved.

Consistent Color Temps

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Cree NanoOptic ® Technology • Optical precision • Controls 100% of the light • Allows you to direct the light

Bare LED Package

NanoOptic® Refractor Control

• Where you want it • How you want it • Not where you don’t • Over 20 different optics

© 2013 Cree, Inc. All rights reserved.

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Outdoor- Focus Products VG • Minimum 70 CRI • UL wet listed • Multi-Level options • Integrated occupancy sensor

Edge Pathway • Cree BetaLED® Technology • UL wet listed • High/Low control options • Optional backlight cutoff shield • International Dark Sky Association approved

Edge Area • NanoOptic® Technology • UL wet listed • High/Low control options • Optional backlight cutoff shield • International Dark Sky Association approved

© 2013 Cree, Inc. All rights reserved.

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Indoor- Focus Products

Down Lights

Troffers © 2013 Cree, Inc. All rights reserved.

Lamps

Upgrade Kits 16

Key Application – Clinical Area Example

© 2013 Cree, Inc. Copyright © 2013, Cree, Inc All rights reserved.

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Key Application – 24/7 Parking Installation Advocate BroMenn Medical Center, Normal, IL

Before •

(250) 205w Metal Halide

After (250) 71w Cree 304 Series® • 2 daylight controls •

Est. Annual Impacts Over 65% less energy use • $33,000 energy cost reduction • $13,000 maintenance savings •

Cree 304 Series Parking Structure

“Our Metal Halide lighting was expensive to operate and maintain, so I saw an opportunity to upgrade. We were replacing our bulbs as often as twice a year.” – Dwight Hill, Director, Facilities Management © 2013 Cree, Inc. Copyright © 2013, Cree, Inc All rights reserved.

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Proven Cree LED Lighting Before & After Applications

“I like what the LED luminaires have done from a pedestrian perspective; the parking lots are well-lit, and feel safe and secure.” – Kathy Boswell, National Facilities, Services (NFS) staff project manager, Kaiser Permanente

© 2013 Cree, Inc. Copyright © 2013, Cree, Inc All rights reserved.

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Why Wait?

LED Lighting is the clear choice NOW

And Cree IS LED lighting!

© 2013 Cree, Inc. Copyright © 2013, Cree, Inc All rights reserved.

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Questions ?

© 2013 Cree, Inc. All rights reserved. Cree® and the Cree logo are registered trademarks of Cree, Inc.