Cherokee Inc. Facilitates Agreement for the Hot Kiss Brand in South Korea.

VAN NUYS, Calif. -- Cherokee Inc. (NASDAQ:CHKE) today announced its client Hot Kiss, a leading American junior apparel, footwear and accessory brand, has entered into an exclusive international distribution agreement for South Korea with YKI Inc., a major Korean retailer, marketer and wholesaler.

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 and footwear.

Hot Kiss is a Los-Angeles-based designer, manufacturer and marketer of junior sportswear, denim and dresses. Founded in 1996, this trend-setting collection can be found in over 4,000 specialty and department stores.

Moshe Tsabag, Chairman and CEO of Hot Kiss, said, "Cherokee, with its global reach, successfully introduces our brand throughout the world to a variety of business models. We continue to expand our customer growth both domestically and internationally and look forward to make Hot Kiss a success in South Korea."

Larry Sass, Senior Vice President, Cherokee Inc., said, "We are pleased to have completed our fourth international transaction for our client Hot Kiss."

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, Zellers, Pick an Pay, Grupo Aviara, Fawaz Al Hokair, and Shanghai Bolderway. Other key clients of Cherokee Inc. include Hearst Publications and Solera Capital.

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.