Cherokee Inc. Facilitates International License Agreement for Camp Beverly Hills

Business Wire, August 30, 2006

VAN NUYS, Calif. -- Cherokee Inc. (NASDAQ:CHKE) today announced its client Camp Beverly Hills, LLC, has entered into an exclusive international license agreement with Ruppert BV of The Netherlands. The territory covers Belgium, Luxembourg, The Netherlands, Germany and The United Kingdom.

Detailed terms of the multi-year agreement were not disclosed, but it includes a wide range of men's, women's and children's apparel categories.

Sandi Stuart, Executive Vice President, Cherokee, said, "We are proud of the fact that our international revenues now account for over 38% of our total business. As a result, we have built an extensive network of premier retailers, manufacturers and trading companies around the world. While our primary objective is the world branding of our Cherokee brand, we will continue to selectively represent clients for both domestic and international licensing opportunities."

Jeff Stein, President & CEO of Camp Beverly Hills International, said, "Ruppert BV is a company that has the right mix of manufacturing capability and strong distribution ties along with a keen sense of how to maintain brand identity while building brand awareness. We're looking forward to working with them on this project."

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), Carrefour (selected countries in Europe and South America), Pick 'n Pay (South Africa) 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).

About Camp Beverly Hills

Camp Beverly Hills was established in 1977 as a retail store in Beverly Hills. The clothing reflects the casual and comfortable California lifestyle. The current distribution channels range from department stores to better specialty stores.

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 included in this press release (including, without limitation, express or implied statements regarding future revenue and net income growth and timing of receipt of funds from Mossimo) 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, our ability to timely and effectively enforce our rights to payment by Mossimo, 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. 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 2006, 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.