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SemiLEDs Patent Ligitication Settlement Announcement


June 26, 2012

Dear Valued Customer:

        On behalf of SemiLEDs, I would like to first thank you for your continued support of our company and our LED products. We value our relationship with you and are dedicated to provide you with the highest quality LED products.

        As you may already know, we recently announced that we ended the patent litigations between Cree, Inc. and us. We did not admit as part of the resolution of the litigations that we infringe any of the Cree’s patents that were asserted against us (the “Cree Asserted Patents”) or that any of the Cree Asserted Patents are valid. However, we decided to end the litigations so that we can focus all of our resources on developing our business, serving our customers and delivering innovative LED products to our customers.

        As part of the resolution, we agreed to an injunction that, starting on October 1, 2012, we will not (and can not assist others to) make, use, import, sell and/or offer to sell our affected LED products based on our MvPLED technology in the United States (see the complete list of the affected SemiLEDs products in Exhibit A) (the “Affected Products”). However, we may continue to sell the Affected Products to our non-U.S customers who do not make, use, import, sell or offer to sell the Affected Products (and/or any device that incorporates any of the Affected Products) in the United States.

        To address the U.S. market, we have developed a new technology called Enhanced Vertical (“EV”). EV is a new line of LED products with the newly developed technology called EVLED that could stand higher operating temperature, have better reliability and yield. Our EV products will be offered to our customers in the United States and the rest of the world (the “New Products”). The New Products are currently available for sampling and qualification, and your sales representative will contact you to discuss the specifications of our New Products and how we may help for the transition well in advance of the October 1, 2012 timeline.

In summary:

        Our U.S. customers may continue to order and purchase the Affected Products before October 1, 2012; provided that such Affected Products must be purchased and delivered in the United States before October 1, 2012.

        Our non-U.S. customers may continue to order and purchase the Affected Products; provided that the Affected Products and any device that incorporates any such Affected Product shall not subsequently be made, used, imported, sold or offered to be sold in the United States on or after October 1, 2012.

        We will continue to provide our typical customer and technical support even after October 1, 2012 for all Affected Products purchased and delivered before October 1, 2012. We may provide support for Affected Products purchased on or after October 1, 2012 if and only if those Affected Products will not be for use, sale or importation in the United States.

        We would like to assure you that our New Products using our newly developed EVLED technology will have equivalent performance as the Affected Products using our MvPLED technology and the pricing of the New Products will be similar and competitive in the marketplace. I also want to assure you that SemiLEDs will do everything it can to assist you during the transition period.

        In the next few days, a SemiLEDs sales representative will reach out to you to answer any questions you may have. If you have any question before then, please feel free to contact us at any time. Again, we at SemiLEDs appreciate and value our relationship with you and look forward to continue to build the best solid-state lighting products together.


Trung T. Doan

Chairman and CEO

SemiLEDs Corporation

Exhibit A

Affected Products List
SL-M-B40AC         SL-M-B45AC
SL-V-B09AA         SL-V-B13AA
SL-V-B15AA         SL-V-B15AK
SL-V-B19BA         SL-V-B24AA
SL-V-B24AB         SL-V-B24AC
SL-V-B24AD         SL-V-B28AD
SL-V-B32AS         SL-V-B35AD
SL-V-B35AK         SL-V-B35AZ
SL-V-B40AA         SL-V-B40AB
SL-V-B40AC         SL-V-B40AC2
SL-V-B40AK         SL-V-B40AK2
SL-V-B40EC         SL-V-B40EK
SL-V-B40GC         SL-V-B40SA
SL-V-B45AC         SL-V-B45AC2
SL-V-B45AK (I-Do)         SL-V-B45AK (I-core)
SL-V-B45AK2         SL-V-B45AS
SL-V-B45EC         SL-V-B45EK
SL-V-B50AH         SL-V-B50BQ
SL-V-B60AC         SL-V-B60AK
SL-V-B80AC         SL-V-B80BQ
SL-V-G15AA         SL-V-G24AD
SL-V-G40AB         SL-V-G40AC
SL-V-G45AC         SL-V-G45EK
SL-V-G60AC         SL-V-U15AA
SL-V-U15AK         SL-V-U15AKD
SL-V-U15AKD         SL-V-U24ADD
SL-V-U40AB         SL-V-U40AC
SL-V-U40ACD         SL-V-U40AK
SL-V-U40EC         SL-V-U40EK
SL-V-U45ACD         SL-V-U60ACD
SL-V-U80ACD         SL-V-U80BC

About SemiLEDs
SemiLEDs develops and manufactures LED chips and LED components for general lighting, including street lights and commercial, industrial and residential lighting, along with specialty industrial applications such as UV curing, medical/cosmetic, counterfeit detection, and horticulture. SemiLEDs sells blue, green and ultraviolet (UV) LED chips.