Cherokee Inc. Listed on Forbes "200 Best Small Companies".

VAN NUYS, Calif. -- Cherokee Inc. (NASDAQ:CHKE), a leading global licensor and brand management company, has climbed to #18 on Forbes' 2007 list of 200 Best Small Companies. This represents the fourth consecutive year that Cherokee has been ranked on the Forbes list of the 200 Best Small Companies. Furthermore, within these rankings, Cherokee was ranked the #2 company in the five-year average Return on Equity (ROE) segment, with a measurement of 120% over this time period. In addition, Cherokee was ranked #5 in the 12-months sales growth segment, although this includes the $33.0 million non-recurring revenues from the sale of our Mossimo Finders Agreement in October 2006.

"We are very pleased to have been chosen for this list by Forbes," said Robert Margolis, Chief Executive Officer of Cherokee, Inc. "We are honored to be ranked among the distinguished companies on Forbes 200 Best Small Companies list, and are proud of our achievements as we continue to execute our growth strategy."

The Forbes ranking is based on several factors, including return on equity, sustained sales and net profit growth over twelve-month and five-year periods, as well as many other benchmarks. The article and complete list of companies can be accessed at: www.forbes.com.

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), Arvind Mills (India) 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 risks, 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.