Cherry Corporation to Sell Its Semiconductor Subsidiary

9 March 2000
Cherry Corporation to Sell Its Semiconductor Subsidiary

    WAUKEGAN, Ill., March 9 The Cherry Corporation
today announced that it has signed a definitive agreement to
sell its subsidiary, Cherry Semiconductor Corporation to Semiconductor
Components Industries, LLC, a subsidiary of SCG Holding Corporation, which
does business under the trade name, ON Semiconductor(TM).  The total purchase
price is $250,000,000 in cash, subject to adjustment in certain circumstances.
    Cherry Semiconductor Corporation ("Cherry Semiconductor") designs and
manufactures analog and mixed signal integrated circuits for the automotive,
computing, and communications markets.  Products include power management
regulators, interface sensors, and switching and pulse-width modulated
controllers.  Based in East Greenwich, Rhode Island, Cherry Semiconductor
employs 970 and has sales of approximately $130 million.
    "This transaction is a significant step toward our long term commitment to
enhance shareholder value.  Significant resources will be unlocked as a result
of the sale of Cherry Semiconductor, " said Peter Cherry, Chairman and
President.  "The net proceeds from the sale will be redeployed into the higher
growth segments of our core markets of automotive switches and modules,
computer keyboards, switches and controls, as well as into related growth
markets.  We undertook an extensive review of our strategic plans over the
last several months and have identified a number of areas we would like to
exploit.  We will be actively pursuing our growth strategies in the near term
future."
    The transaction will be structured as a sale of all of the common stock of
Cherry Semiconductor.  The transaction is expected to close in the second
quarter of calendar 2000 and is subject to certain terms and conditions,
including Hart-Scott-Rodino filings and consents.  The board of directors of
The Cherry Corporation has approved the stock purchase agreement and the
related transaction.
    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
enhanced shareholder value and the use of net proceeds 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.