Cherokee Inc. and Hudson's Bay Company Extend Licensing Agreement to 2012.

VAN NUYS, Calif. -- Cherokee Inc. (NASDAQ:CHKE), a leading licensor and global brand management company, announced today that it has extended its licensing agreement with Hudson's Bay Company's Zellers Stores for the Cherokee brand. The agreement will continue for 5 years, through January 31, 2012, and provides for additional extensions.

Michael Rousseau, President of Hudson's Bay Company, said, "The Cherokee brand continues to be an important part of our strategic initiative to provide quality, fashion and value to our customers at Zellers' stores. The brand's power and connection with the Canadian consumer is very strong and an important element in our portfolio of brands."

Howard Siegel, President of Cherokee, Inc., said, "We are very pleased to continue our partnership with Hbc, the leading retailer in Canada. Over the past ten years, Cherokee has become a premier family brand throughout Canada with high consumer regard and recognition. We greatly respect the management of Hbc and look forward to the continued growth in the coming years while we continue to execute our 'world branding strategy' for Cherokee."

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 'n Pay, Grupo Aviara, 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 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. 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.