Cherokee Signs Agreement with Roots to Represent Canada's Leading Lifestyle Brand for Licensing Agreements.

VAN NUYS, Calif. -- Cherokee Inc. (NASDAQ:CHKE), a leading licensor and global brand management company, announced today that it signed an exclusive agreement with Roots Canada to represent the Roots brand in the United States. Under the terms of the agreement, Cherokee will engineer strategic retail direct licensing opportunities for Canada's leading athletic lifestyle brand.

Established in Toronto in 1973 by Michael Budman and Don Green, Roots is one of Canada's most respected names in fashion and style, offering a wide range of quality clothing, leather goods and accessories for men and women of all ages. Licensed products include shoes, hosiery, fashion accessories, eyewear, watches, luggage, linens, home furnishings, and more. Roots is proudly associated with the Olympic Games and has become renowned for outfitting the teams of the United States, Canada, Great Britain and Barbados. The privately owned company operates nearly 150 branded stores in Canada, 6 in the United States and 15 in Taiwan.

The distinction of the Roots brand combined with Cherokee's success in retail direct licensing provides the ability for one retailer to create an exclusive range of exciting fashion and lifestyle products based on the 32-year heritage of this highly-recognized brand.

"We are thrilled to partner with Cherokee to extend the brand in a meaningful way in the United States," said Carolyn Holdsworth, Vice President of Licensing for Roots. "Cherokee's unique experience with creating successful retail direct partnerships will undoubtedly deliver the best opportunity for both Roots and one US retailer."

Cherokee officials are equally excited about the new deal. "The heritage, history and emotional connection consumers have to the Roots brand is perfect for US retail," said Anthony Damiani, Vice President of Brand Development for Cherokee. "People want quality brands they can relate to and trust, and the Roots brand will deliver that and more through this exclusive partnership. Additionally, the opportunity to partner with the US Olympic program with Roots offers an unmatched retail opportunity."

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.