Cherokee Signs Agreement with Arcila-Duque Interiors Inc. to Represent Juan Carlos.

VAN NUYS, Calif. -- Cherokee Inc. (NASDAQ:CHKE) announced today that it has signed an exclusive agreement with Arcila-Duque Interiors Inc. to represent Juan Carlos, a home and product designer. According to Wallpaper magazine Juan Carlos is one of the world's "Top Twelve Interiortects (interior designer/architect) of 2004". Under the terms of the agreement, Cherokee will engineer strategic brand development licensing opportunities for Juan Carlos.

Americans are becoming fascinated with Latin culture. Consumers will look to Juan Carlos for the right colors, accessories and "signature pieces" to give their homes Latin flair. When this is combined with Cherokee's success in brand extension, there is an opportunity for the retailer to create a range of exciting Juan Carlos lifestyle products that fits their customers' personal styles.

Sandi Stuart, EVP of Marketing, Cherokee Inc., said, "The Juan Carlos Brand will bring products designed with European allure, American practicality and Latin style to the marketplace. Juan Carlos' home collection offers a fresh and unique merchandising opportunity to retailers."

Juan Carlos said, "It is my dream to deliver to the American market the flavor of Latin culture. People will feel our culture and enjoy our heritage at home through all of the exciting products we create. Cherokee's marketing team is uniquely qualified to represent the Juan Carlos brand with their knowledge of the retail marketplace and their understanding of the growing need to serve Americans fascinated with Latin culture."

About Juan Carlos Arcila-Duque

Juan Carlos Arcila-Duque is an established American designer with strong ties to his Latin heritage. Juan Carlos' projects include private residences, corporate offices, trend setting clubs, restaurants and unique retail stores. His list of celebrity clients and his projects throughout the world places him at the top of the design world today. Clients include, Warner Bros., Club Monaco, Ralph Lauren, Mynt Ultra Lounge, The Shore Club Hotel and HRH Archduchess Francesca Thyssen, among others.

About Cherokee Inc.

Cherokee Inc., based in Van Nuys, is a marketer, licensor and manager of a variety of brands it owns 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. Some of Cherokee's premier clients around the world include Target Stores, Mervyn's, TJX Companies, Hearst Publications and Solera Capital (U.S.), Zellers (Canada), Carrefour (selected countries in Europe and South America), Tesco (U.K., Ireland and certain other European and Asian countries) and Shanghai Bolderway (China).

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 2004, 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.