Cherokee Inc. Announces Strategic Master Licensing Agreement with Gilrichco Brands LLC.

Business Editors

VAN NUYS, Calif.--(BUSINESS WIRE)--Jan. 13, 2003

Cherokee Inc. (NASDAQ:CHKE) announced today that they signed a multiyear licensing arrangement with Gilrichco Brands LLC for a group of brands that include Chorus Line, All that Jazz, Jazz Kids, Jazz Sport, Tickets and Molly Malloy. Financial terms of the deal were not disclosed.

Howard Siegel, President, stated, "We are pleased that in a short period of time, Cherokee has licensed all of the brands acquired in the CL Fashions transaction including the retail direct licensing of the Carole Little and Saint Tropez West brands that was recently announced. We are excited to enter into this agreement with Gilrichco. They are acting as the master licensee and we are working closely with them evaluating retail direct licensing opportunities for these brands."

Richard Gilman, CEO, Gilrichco Holdings LLC, commented, "We are currently developing strategies for each brand which will include wholesale manufacturing along with wholesale licensing as well as retail direct licensing programs."

About Cherokee Inc.

Cherokee Inc., based in Van Nuys, California, is a marketer, licensor and manager of a variety of brands it owns or represents domestically and internationally. Cherokee currently has licensing agreements in multiple categories of merchandise, including family apparel, fashion accessories, footwear as well as luggage, cosmetics and home products.

About Gilrichco Inc.

Gilrichco Inc., manufactures and sources high-caliber private label apparel, textile related items, and promotional products for corporate identity programs. They lead the industry for on-time, on-budget deliveries and this is why a multitude of high profile companies have depended upon Gilrichco for their needs.

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 Form 10-K for Fiscal year 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.