Cherokee Group Enhances Its Management Team.

Business Editors

VAN NUYS, Calif.--(BUSINESS WIRE)--Sept. 23, 2002

Cherokee Inc. (NASDAQ: CHKE), a leading licensing and global brand management company, today announced Kyle Wescoat has been named Chief Financial Officer replacing Carol Gratzke.

Ms. Gratzke, Cherokee's long time CFO, will still remain to work on special projects while pursuing her passion to promote women's golf as an executive officer/board member of the Women's Southern California Golf Association. Prior to Cherokee, Mr. Wescoat served as Chief Financial Officer of Vans (NASDAQ: VANS), the footwear and lifestyle Company. During his tenure at VANS, he helped transition the company from a domestic supplier of athletic footwear to a leading global teen lifestyle brand. He joins Cherokee with over 20 years of senior financial management experience with several growth oriented companies. Mr. Wescoat is a graduate of Drexel University and received his MBA in finance from the University of Michigan.

Robert Margolis, Chairman and CEO of Cherokee stated, "Carol has been a key contributor to Cherokee's success, and I am glad she will continue with us on special projects. We all wish her well. I am pleased to have a financial executive of Kyle's caliber joining our team at this important time as we seek further growth and refine our brand portfolio strategy globally."

Mr. Wescoat further commented, "Cherokee pioneered the concept of Retail Direct licensing which has become the model for the industry. I am excited to have the opportunity to play a part in achieving its expanded global vision."

Ms. Gratzke said, "I feel fortunate to have had the opportunity to work with Mr. Margolis and the Cherokee team over the past 16 years and I look forward to continuing our association. As I look onward to pursuing my passion, it is gratifying to leave Cherokee at such a good time in its history."

Cherokee Inc., based in Van Nuys, is a leading global licensing and brand management company. Through its unique Retail Direct Licensing template, the Company receives royalties on brands it owns or represents with annual retail sales of $3 billion. Cherokee began as a shoe and apparel manufacturing company in the 70's. The Company reinvented itself in the mid 90's, taking advantage of its unique position and industry-wide relationships to completely transform its business model by creating innovative licensing strategies and business combinations.

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. In particular, the forward-looking statements in this news release include statements regarding the Company's goals for future growth in revenues and earnings, the prospects of existing and new licensees such as Carrefour, and the Company's pursuit of additional brands to acquire or represent. Forward-looking statements involve known and unknown risks 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 risks, uncertainties and other matters can be found in the Company's Annual Report on Form 10-K for Fiscal 2002, 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.