Cherokee Retains Stephens, Inc. To Assist Board Of Directors, Explore Strategic Alternatives

Cherokee International Corp. announced that it has retained the investment banking firm of Stephens Inc. to assist its Board of Directors in exploring various strategic alternatives for the company. Stephens Inc. is said to have significant industry experience in the power electronics market segment.

While Stephens Inc. is assisting the company to explore a variety of strategic alternatives, including the possible divestiture of certain assets, the company also has other professionals advising it on the extension or refinancing of the company’s existing bond obligation. An evaluation process of all alternatives is currently underway.

There can be no assurance the Board will elect to pursue any of the strategic alternatives under consideration. The company also has not set a definitive time frame for conclusion of the process and will comment further on this matter only when, and if, the company has concluded its evaluation efforts.

In making the announcement, Cherokee President and CEO Jeffrey M. Frank said, "Our Board and management are exploring all strategic alternatives available to the company. We are working closely with a number of outside professionals to ensure the maximum benefit to our shareholders and all of our other stakeholders including customers, employees, suppliers and bondholders."