Cherokee International Corporation, a leading provider of custom-designed power supplies, today announced in a statement that it plans to close its manufacturing operation in Guadalajara, Mexico by the first quarter of 2007 and move the products manufactured in that facility to a newly built facility in Shanghai, China. In February 2006, Cherokee International opened a new, 120,000 square foot, state-of-the-art manufacturing facility in Shanghai, China and plans to move and consolidate high volume, low mix manufacturing from plants that represent a higher cost basis to operate to this new facility as part of Cherokee's China strategy. The design and location of Cherokee's new facility in Shanghai optimizes the Company's and its customers' supply chains as an increasing number of Cherokee's customers and suppliers have their own manufacturing operations in China. It also positions the Company to take advantage of the overall business growth in Asia. Jeffrey M. Frank, Cherokee's Chief Executive Officer, stated, “the facility will improve gross margins, keep us competitive and return value to our many loyal customers and shareholders.”