Cherokee International Completes Sale of Its Manufacturing Facility in Guadalajara, Mexico.

[?] Production of Power Supplies Moves to Shanghai, China [?]

TUSTIN, Calif. -- Cherokee International Corporation (NASDAQ:CHRK), a leading designer and manufacturer of custom-designed power supplies, announced today it has completed the sale of its manufacturing facility in Guadalajara,

In February 2006, Cherokee International opened a new, 120,000 square foot, state-of-the-art facility in Shanghai, China with plans to move and consolidate high volume, low mix manufacturing to Shanghai from its plants that represent a higher cost basis to operate. The closure of the facility in Mexico is part of the consolidation plan.

The design and location of Cherokee's new facility in Shanghai optimizes the Company's point of consumption and supply chain location in Asia. An increasing number of Cherokee's customers and suppliers currently have their own manufacturing operations in China. Because its Shanghai operation positions the company to take advantage of the overall business growth in Asia, Cherokee believes China could also become a significant consumer of its power supplies.

Lin Fox, Cherokee's Chief Financial Officer, stated, "We continue to implement our strategic plan to consolidate manufacturing and improve margins. While we closed out production in Mexico, we were successful in retaining all business and customers from this location. We should begin to see considerable cost reductions and faster product delivery times, especially to our customers that have manufacturing facilities in China."

About Cherokee International

Cherokee International designs, manufactures and markets high-reliability custom and standard switch-mode power supplies for datacom, telecom, medical and process-control applications. With advanced manufacturing facilities and engineering expertise located worldwide, Cherokee applies a customer-focused approach to provide high-reliability power products to manufacturers, reducing time to market. As the leading provider of custom-designed power sources, Cherokee also delivers a complete range of standard and modified-standard AC/DC power supplies, AC/DC rectifiers and power shelves, and DC/DC converters. Cherokee International headquarters are at 2841 Dow Ave, Tustin, California 92780 and can be reached at +1 714 544 6665. European operations are at Boulevard de l'Europe 131, 1301 Wavre, Belgium and can be reached at +32 10 438 510. Cherokee International (China) Power Supply Ltd. is located at 1353 Chenqiao Road, Shanghia Sengpu Industrial Park Shanghai, 201401 China and can be reached at 021 6710 8910. Additional information about the Company and its products is available at http://www.cherokeepwr.com.