CHRK Cherokee International Corp (MM)

Cherokee International Corporation (NASDAQ: CHRK), a leading designer and manufacturer of power supplies, today announced that as of March 30, 2008, Cherokee China has repaid, in full, the $1.3 million it borrowed against a working capital line of credit. In January 2007, Cherokee China entered into a loan contract with Industrial and Commercial Bank of China�Ltd. (�ICBC�) for a working capital line of credit. The line of credit is collateralized by the Company�s building in Shanghai, China. During the second quarter of 2007, Cherokee China drew $1.3 million on their $3.4 million line of credit. The $1.3�million has been paid in cash from Cherokee China�s operations and is in compliance with all covenants. �Our China facility continues to increase production levels and this has contributed to improved margins for the Company,� said Linster W. Fox, Cherokee�s EVP, CFO and Secretary. �While we remain focused on improving liquidity and reducing debt, we expect China to be a catalyst for a strong 2008 for Cherokee.� 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 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 Fengpu 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. Safe Harbor Statement Certain statements contained in this press release are forward-looking statements. These forward-looking statements are based upon our current expectations about future events. When used in this press release, the words "believe," "anticipate," "intend," "estimate," "expect" and similar expressions, or the negative of such words and expressions, are intended to identify forward-looking statements, although not all forward-looking statements contain such words or expressions. These forward-looking statements generally relate to our plans, objectives and expectations for future operations and include our statement in this press release that we believe our China facility�s ability to increase production levels will serve as a catalyst for a strong and profitable 2008. However, these statements are subject to a number of risks and uncertainties affecting our business. You should read this press release completely and with the understanding that actual future results may be materially different from what we expect as a result of these risks and uncertainties and other factors, which include, but are not limited to: (1) changes in general economic and business conditions, domestically and internationally, (2) reductions in sales to, or the loss of, any of the Company's significant customers or in customer capacity generally, (3) changes in the Company's sales mix to lower margin products, (4) increased competition in the Company's industry, (5) disruptions of the Company's established supply channels, (6) the Company's level of debt and restrictions imposed by its debt agreements and the Company�s ability to repay this debt, and (7) the additional risk factors identified in the Company's filings with the Securities and Exchange Commission, including its annual report on Form 10-K. Except as required by law, the Company undertakes no obligation to update any forward-looking statements, even though the Company's situation may change in the future.