Cherokee Inc. Enters into an International Licensing Agreement with Comercial Mexicana for Its Cherokee Brand

Business Wire, April 4, 2007

VAN NUYS, Calif. -- Cherokee Inc. (NASDAQ:CHKE) announced today that it has entered into an international licensing agreement for its Cherokee brand with Comercial Mexicana, a premier retailer in Mexico. This multi-year agreement covers a wide range of categories including men's, women's, children's clothing, footwear, accessories and more.

"Cherokee is one of the only true global family lifestyle brands that cover a wide range of product categories and will add significant growth and profit to our apparel and non-foods business. It will be one of our key initiatives as we continue to grow our marketshare throughout Mexico," said Santiago Garcia, General Director and COO of Comercial Mexicana.

"We are pleased to announce our new partnership with Comercial Mexicana. Cherokee's 34-year heritage coupled with Comercial Mexicana's strong merchandising, marketing and advertising expertise, is an ideal partnership," said Howard Siegel, President, Cherokee Inc. "We are proud of our 'world branding' efforts as Cherokee products are now being sold in approximately 3000 locations in over 20 countries around the world. We will continue to pursue our 'world branding' strategies for Cherokee as we continue to meet with premier retailers and trading companies throughout Europe, Latin America, and Asia."

"We are proud to have established a commercial relationship with the Cherokee brand and Comercial Mexicana over the past three years and look forward to much continued success. The introduction of the globally recognized Cherokee brand by Comercial Mexicana has given the consumers in Mexico fashionable, quality products at affordable prices," said Mauricio Sacal President of Interlicencias.

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 a consultant to brands it represents. Currently, Cherokee Inc. 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 Cherokee Inc. include Target Stores, TJX Companies, Mervyn's, Tesco, Hbc/Zellers, Pick 'n Pay, Comercial Mexicana, Falabella, Fawaz Al Hokair, and Shanghai Bolderway.

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) 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 select group of licensees 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.