The Auto Channel
The Largest Independent Automotive Research Resource
The Largest Independent Automotive Research Resource
Official Website of the New Car Buyer

Cherry Anticipates Lower Sales and Earnings Per Share For Third Quarter

25 November 1999

Cherry Corporation Anticipates Lower Sales and Earnings Per Share For Third Quarter Versus Prior Year Levels
    WAUKEGAN, Ill., Nov. 24 -- The Cherry Corporation
today announced that it anticipates its sales and earnings per
share for the third quarter ending November 30, 1999 will fall below prior
year levels.  Although the amounts are not presently determinable, the Company
estimates that the sales shortfall could be in the range of 2 to 5 percent and
the earnings per share shortfall could be in the range of 50 to 55 percent.
The Company will announce its actual third quarter results the week of
December 20, 1999.
    "Over the past several weeks, we have experienced difficulties in meeting
the production requirements of our domestic automotive customers", said Peter
Cherry, chairman and president.  "In order to meet our delivery commitments,
we have incurred substantial additional costs.  Additionally, although demand
for our semiconductor products is quite strong, we are encountering some
capacity constraints which are temporarily hindering our ability to meet this
demand.  Actions are being taken at both operations to remedy these situations
as quickly as possible but we will not have them completely resolved until the
middle of the fourth quarter."
    As a result of these factors, the Company currently anticipates that
fourth quarter earnings per share will also fall below the prior year level.
    The Cherry Corporation manufactures proprietary and custom electrical
switches, sensors, electronic keyboards and controls, and semiconductors for
the worldwide automotive, computer, and consumer and commercial markets.  The
company has eight wholly owned subsidiaries in the United States, Germany,
England, France, Australia, Czech Republic, Mexico, and Hong Kong.  Cherry
also has 50-50 joint ventures in Japan, Hirose Cherry Precision Company
Limited, and in India, TVS Cherry Limited.  Additional information is
available on the company's website at http://www.cherrycorp.com .

    Certain statements in this press release, including those regarding the
anticipated sales and earnings for the third and fourth quarter are "forward-
looking statements" within the meaning of the Private Securities Litigation
Reform Act of 1995 and involve certain risks and uncertainties that could
significantly impact future results.  A discussion of these risks and
uncertainties is contained in the Company's Form 10-K for the year ended
February 28, 1999, filed with the Securities and Exchange Commission.