Cherokee Inc. Facilitates License Agreement for the Hot Kiss and First Kiss Brands in Japan

Business Wire, Sept 6, 2005

VAN NUYS, Calif. -- Cherokee Inc. (NASDAQ:CHKE), a leading global licensor and brand management company, announced today that its client Hot Kiss Inc, a highly respected American apparel, footwear and accessory company has entered into an exclusive international license agreement for its Hot Kiss and First Kiss brands with Sumikin Bussan Corporation, a major leading Japanese trading company.

Detailed terms of the multi-year agreement were not disclosed, but it includes a wide range of categories including juniors' and girls' apparel, accessories, sunglasses, watches, handbags, small leather goods and footwear. This marks the first Hot Kiss and First Kiss license agreement in Japan.

Hot Kiss Inc is a Los-Angeles-based leading designer, manufacturer and marketer of junior sportswear, denim and dresses. Founded in 1996, this trend-setting collection can be found in over 4000 specialty and department stores.

Moshe Tsabag, Chairman and CEO of Hot Kiss, said "Cherokee, with its global network, continues to successfully introduce our brands throughout the world. We continue to grow our customer base both domestically and internationally and look forward to making Hot Kiss a success in the Japanese market."

Larry Sass, Cherokee senior vice president added "By bringing these two companies together, we are pleased to have completed the third international transaction for Hot Kiss. We continue to look for other licensees around the world."

About Cherokee Inc.

Cherokee Inc., based in Van Nuys, is a marketer, licensor and manager of a variety of brands it owns (Cherokee, Sideout, Carole Little and others) and represents. Currently, Cherokee has licensing agreements in a number of categories, including family apparel, fashion accessories and footwear, as well as home furnishings and recreational products. Premier clients for the Cherokee brand around the world include Target Stores (U.S.), Tesco (U.K., Ireland and certain other European and Asian countries), Zellers (Canada), and Grupo Aviara (Mexico). Premier clients for Cherokee's Sideout brand include Mervyn's (U.S.) and Shanghai Bolderway (China), and for Cherokee's Carole Little brands include TJX Companies (U.S., Canada and Europe). Other key clients of Cherokee include Hearst Publications and Solera Capital (U.S.).

Statements included within this news release that are not historical in nature constitute forward-looking statements for the purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. When used, the words "anticipates", "believes", "expects", "may", "should" and similar expressions are intended to identify such forward-looking statements. Forward-looking statements involve known and unknown risk and uncertainties that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and uncertainties, include, but are not limited to, the effect of national and regional economic conditions, the financial condition of the apparel industry and the retail industry, the overall level of consumer spending, the effect of intense competition in the industry in which the Company operates, adverse changes in licensee or consumer acceptance of products bearing the Company's brands as a result of fashion trends or otherwise, the ability and/or commitment of the Company's licensees to design, manufacture and market Cherokee and Sideout branded products, the Company's dependence on a single licensee for most of the Company's revenues, the Company's dependence on its key management personnel, and adverse determinations of claims, liabilities or litigations and the effect of a breach or termination by the Company of the management agreement with the Company's CEO. A further list and description of these risk, uncertainties and other matters can be found in the Company's Annual Report on Forms 10-K for Fiscal Year 2005, and in its periodic reports on Forms 10-Q and 8-K (if any). Undue reliance should not be placed on the forward-looking statements contained herein because some or all of them may turn out to be wrong. The Company disclaims any intent or obligation to update any of the forward-looking statements contained herein to reflect future events and developments.