Cherokee Inc. Enters into License Agreements With Hudson Bay Apparel Brands, Baby Togs and Getracan For its Sideout Brand

Cherokee Inc. (NASDAQ: CHKE), a leading licensor and global brand management company, today announced that it has entered into three new exclusive license agreements.

Hudson Bay Apparel Brands, a subsidiary of Scope Apparel, has been granted the exclusive right in the U.S. to Men’s and Young Men’s woven tops, bottoms and swimwear. Scope Apparel, with offices in Houston, New York and Los Angeles, is a leading supplier of men’s, young men’s and boy’s branded and private label apparel for over 40 years.

Jock Thompson, Executive Vice-President of Hudson Bay Apparel Brands, said, "We believe that the Sideout brand with its clean marketable heritage and strong brand recognition provides a great opportunity for many retailers. We are excited to partner with Cherokee and the first class team of licensees they’ve recruited to be involved with Sideout.”

Baby Togs has been granted the exclusive rights in the U.S. to Boys 0 – 20 woven tops, bottoms and swimwear. BT Kids Design Group is a 60 year old children’s apparel company that designs and manufactures boys and girls apparel from newborn through size 20. Their current distribution ranges from mass to better department stores.

Brian Root, President of BT Kids, said, "Sideout is a heritage California lifestyle brand and we believe there is a tremendous opportunity at many retailers. We look forward to working closely with the other Sideout partners to maximize Sideout’s potential.”

Getracan Inc., has been granted the exclusive right in Canada to Men’s, Young Men’s and Boy’s 4 – 18 knit and woven tops, bottoms and swimwear. Established in 1969 and serving the Canadian marketplace for over 40 years, Getracan is recognized as a "go to destination” for quality, fashion and value.

Earl Green, Vice President, Getracan Inc., said, "I look forward to collaborating with Hudson Bay and Baby Togs. There are great synergies between our companies and we look forward to building the Sideout brand in Canada.”

Jay Kester, Executive Vice President of Marketing for Cherokee Inc., said, "We are pleased to add all three of these companies to our group; which numbers eight in total. We are now in a position to build on Sideout’s heritage in Men’s, Women’s and Children’s. In addition, we continue to have discussions regarding the remaining open categories and hope to add additional companies to our group shortly.”

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 Central European countries), Zellers (Canada), Pick ‘n Pay (South Africa), Grupo Pão de Acucar (Brazil), S.A.C.I. Falabella (Chile and Peru), Arvind Mills (India), Shufersal LTD. (Israel), Comercial Mexicana (Mexico), Eroski (Spain) and RT Mart (Peoples Republic of China). Premier clients for Cherokee’s other brands include the TJX Companies (U.S., Canada and Europe) for the Carole Little brands, and Shanghai Bolderway (China) for the Sideout Brand. Cherokee also placed the Norma Kamali brand with Wal-Mart.

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 (including, without limitation, express or implied statements regarding dividend payments, revenues from new licensees and potential future business development) 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, international and regional economic conditions, the financial condition of the apparel industry and the retail industry, the overall level of consumer spending domestically and internationally, 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, Sideout and Carole Little branded products, the Company’s dependence on a select group of 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 risk, uncertainties and other matters can be found in the Company’s Annual Report on Form 10-K for Fiscal Year 2009, 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.