Cherokee Inc. Facilitates Agreement for the Laila Ali Brand

Cherokee Inc. (NASDAQ: CHKE), a leading licensor and global brand management company, today announced that its client, Bee Line Inc. has entered into an exclusive license agreement for the Laila Ali Brand with International Beauty Brands. Detailed terms of the multi-year agreement were not disclosed, but it includes a wide range of beauty and personal care products.

Tony Eluck, President, International Beauty Brands, said, "We are excited to be part of Laila Ali’s consumer product strategy. Our initial responses in the marketplace have been terrific and we look forward to having product in the market within the next six months.”

Laila Ali said, "The Cherokee Group is the premier global licensing and brand management company around the world. They have worked tirelessly and hand-in-hand with my team at Premier Sports and Entertainment to develop a comprehensive consumer products division and strategy. Developing my own line of licensed products has been a goal of mine for a long time; so to be able to create and produce my inaugural line, and to do so with such a tremendous team of professionals is really exciting. And, this is just the first step in our collective vision developing into category and product reality!”

Jay Kester, Executive Vice President of Marketing for Cherokee Inc., said, "Laila Ali is a powerful and marketable franchise. This is only the first step in our global consumer products strategy for the Laila Ali Brand. We are currently in discussions for the development and distribution of additional merchandise categories including nutrition, health & wellness, sporting goods and apparel to compliment beauty and personal care.”

Eric Kaufman, President, Premier Sports & Entertainment, said, "We are thrilled to be working with a team of proven experts in their respective fields in growing Laila’s brand and launching her licensed consumer products division. As a world champion athlete, television personality, mother, wife, and daughter, she’s emblematic of today’s well-rounded, on-the-go woman, establishing a firm foundation for the expansion of her licensing program into many more categories in the near future.”

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.