Magnetek Announces Settlement of Legal Dispute

Magnetek, Inc. ("Magnetek” or the "Company”) (NYSE: MAG) today announced it has entered into a settlement agreement with Ole K. Nilssen ("Nilssen”) and Geo Foundation, Ltd. ("Geo”) in a long-standing patent dispute. In April 2008, the United States District Court for the Northern District of Illinois confirmed an arbitration award in favor of Nilssen and Geo as a judgment. As a result of the judgment, the net amount due to Nilssen and Geo from Magnetek was $22.0 million. Also in April 2008, Magnetek filed an appeal of the judgment with the Court of Appeals for the Seventh Circuit, and Nilssen and Geo brought a motion for modification of the judgment to include post-award prejudgment interest calculated by Nilssen at $5.9 million. Magnetek subsequently filed a motion in opposition to the award of interest. Under the terms of the settlement agreement dated June 12, 2008, Magnetek has agreed to pay $18.75 million in full satisfaction of the claims that Nilssen and/or Geo have to the unpaid balance of the arbitration award as well as claims for post-award, prejudgment interest and post-judgment interest. The settlement amount must be paid by Magnetek no later than June 14, 2008. Commenting on the settlement agreement, Magnetek’s President and CEO David P. Reiland said, "While we were disappointed with the ruling in this case, we felt it was in Magnetek’s best interests to put this issue behind us. Although the settlement amount is not insignificant, after making the payment, we remain debt free with over $12 million in cash available to fund our growth initiatives and ongoing operations.” The Company had recorded a liability in prior periods of $25.6 million related to the arbitration award and subsequent judgment, including estimated interest on the award. As a result of the settlement agreement, the Company will record the excess of the recorded liability less the settlement amount as income from discontinued operations in its fiscal fourth quarter. About Magnetek, Inc. Magnetek, Inc. (NYSE: MAG) manufactures digital power and motion control systems used in material handling, people moving, and energy delivery. The Company is headquartered in Menomonee Falls, WI, in the greater Milwaukee area and operates manufacturing plants in Pittsburgh, Pa., Canonsburg, Pa. and Mississauga, Ontario, Canada as well as Menomonee Falls. This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's anticipated financial results for future periods, including the fiscal year ending June 29, 2008. These forward-looking statements are based on the Company's expectations and are subject to risks and uncertainties that cannot be predicted or quantified and are beyond the Company's control. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying these forward-looking statements. Other factors that could cause actual results to differ materially from expectations are described in the Company's reports filed with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934.