Cherokee Signs Agreement with Hearst Magazines to Represent House Beautiful.

Business Editors

VAN NUYS, Calif.--(BUSINESS WIRE)--Nov. 4, 2002

CHEROKEE INC. (NASDAQ:CHKE) announced today that it has signed an exclusive agreement with Hearst Brand Development to represent House Beautiful, one of the publishing company's flagship properties.

Under the terms of the agreement, Cherokee will engineer strategic brand development licensing opportunities for House Beautiful.

In today's environment, home decor, home improvement, entertainment, and outdoor living represent an important growing and profitable business. Millions of consumers look to House Beautiful for the right colors, accessories and "signature pieces" to create homes with great style regardless of price. When this is combined with Cherokee's success in brand extension, there is an opportunity to create a range of exciting House Beautiful lifestyle products that fits the customers' personal styles.

Sandi Stuart, EVP of Marketing, Cherokee Inc., said, "We are excited to partner with Hearst on this heritage equity, and play a role in building the House Beautiful brand in home furnishings, home decor, home improvement, outdoor living, and much more."

Millions of dedicated House Beautiful readers spent more than $18 billion on home-related purchases last year, making House Beautiful a magazine that effectively converts readers into consumers.

"For more than 100 years, House Beautiful has shown readers the essence of classic style - from traditional to modern - and has given them the confidence to define and personalize it in their own homes," said Glen Ellen Brown, Vice President, Hearst Brand Development. "We're pleased to partner with Cherokee, who has a terrific understanding of brands, and believe this partnership best serves consumers by providing them with products they would be interested in purchasing."

Howard Siegel, President, Cherokee Inc., added, "We are taking the success of our retail direct licensing concept in apparel, and applying it to other sectors of business. We frequently review opportunities and field many calls from brand owners who are looking to us to leverage their brand in the marketplace; but rarely do we come across an equity with the attributes of House Beautiful."

About Cherokee Inc.

Cherokee Inc. (NASDAQ: CHKE) is a leading global licensing and brand management firm receiving royalties on sales of $3 billion annually, through our Retail Direct Licensing template. Cherokee started out as a shoe and apparel manufacturing company in the 70's. The company reinvented itself in 1995, taking advantage of its unique position and industry-wide relationships to completely transform its business model by creating innovative licensing strategies and business synergies.

About Hearst Magazines

Hearst Magazines is a unit of The Hearst Corporation (www.hearst.com), one of the world's largest publishers of monthly magazines, with a total of 16 U.S. titles and 110 international editions. Hearst's magazines are also read by more U.S. adult women than any other monthly magazine publisher. The company also publishes 18 magazines in the Untied Kingdom through its wholly owned subsidiary, The National Magazine Company Limited.

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. In particular, the forward-looking statements in this news release include statements regarding the Company's goals for future growth in revenues and earnings, the prospects of existing and new licensees such as Carrefour, and the Company's pursuit of additional brands to acquire or represent. Forward-looking statements involve known and unknown risks 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 risks, uncertainties and other matters can be found in the Company's Annual Report on Form 10-K for Fiscal 2002, 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.