Cherokee Inc. Licenses Its Cherokee Brand in Brazil to Grupo Pao de Acucar.

VAN NUYS, Calif. -- Cherokee Inc. (NASDAQ:CHKE), a leading global licensor and brand management company, announced today that it has signed an exclusive international license agreement for its Cherokee brand with Grupo Pao de Acucar, one of the largest retailers in Brazil, for their Hypermarket Retail Stores - Extra. This multi year agreement covers a wide range of categories including men's, women's and children's clothing, footwear, accessories, home and other categories.

"We are extremely proud to partner and collaborate with Cherokee," said Alexandre Lodygensky, Grupo Pao de Acucar Board Director and Director of International. "Our main focus and goal is to grow our non-foods area over the next five years. The Cherokee brand will provide us with the opportunity to accomplish this goal. As one of the only true global family lifestyle brands that cover a wide range of product categories, the Cherokee brand will add significant growth and profit to our apparel and non-foods business and will translate well into the Brazilian market. Our customers are looking for more branded products and now with Cherokee, we will be able to satisfy their needs with quality, style and added value," Lodygensky continued.

Mark Nawrocki, Senior Vice President of Cherokee Inc., stated, "We are pleased to announce our new partnership in Brazil with Grupo Pao de Acucar. As the largest retailer in the largest country in South America, this partnership will provide us with the opportunity to build upon our very important platform for South America. Cherokee's 35-year heritage, coupled with Grupo Pao de Acucar's rich history, significant knowledge and strong merchandising, marketing and advertising expertise, creates an ideal opportunity for Cherokee. Together we will build Cherokee and Extra Stores into one of the largest clothing brand retailers in Brazil."

Larry Sass, Senior Vice President, Cherokee Inc., said, "Adding Brazil to our list of licensed countries for our Cherokee Brand represents a significant milestone in achieving our South American licensing objectives. With our recent launch in Chile, and fast approaching launch of Cherokee in Peru with our partner Falabella-Tottus, the Cherokee brand is now almost fully-licensed throughout South America. We are very proud of our geographic diversification, spanning throughout North and South America, as we execute our 'World Branding' of Cherokee. We will continue to develop and build upon our global network - which includes some of the most prominent retailers around the world - and focus on placing the Cherokee brand in available countries throughout Europe and Asia. In addition, we are aggressively seeking other U.S. brands to represent for international opportunities utilizing our relationships with premier retailers around the world," Sass concluded.

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), Pick 'n Pay (South Africa), Fawaz Al Hokair (Middle East), Grupo Pao de Acucar (Brazil), S.A.C.I. Falabella (Chile and Peru) and Comercial Mexicana (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).

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 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 two 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 2007, 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.