Cherokee's World Branding Accelerates: Licenses Its Cherokee Brand in India to Arvind Mills Ltd.

Cherokee Inc. (NASDAQ:CHKE), a leading global licensor and brand management company, announced today that it has signed an exclusive international license agreement for its Cherokee brand with Arvind Mills Ltd., India’s largest integrated textile company and retailer. This multi-year agreement covers a wide range of categories including men’s, women’s and children’s clothing, footwear, accessories, home and other categories. "We are very excited to have the opportunity to license the Cherokee brand for India. Cherokee is one of the fastest growing brands worldwide and with our experience of working with international brands and knowledge of the Indian retail environment, we are confident that Cherokee will be one of the largest family lifestyle brands across India. The timing could not be better, with the revolution of organized retail sweeping India, we look forward to much success,” said Mr. Sanjay Lalbhai, Chairman and Managing Director, Arvind Mills. Mark Nawrocki, Senior Vice President of Cherokee, stated: "There is no better partner in India who understands both branding and retail as Arvind. Arvind was the first company to bring international clothing brands to India and today their brand list is impressive. Arvind, through their Megamart store division, is one of the largest clothing retailers in India, and their planned roll out for Cherokee in both free standing Cherokee Stores as well as their wholesale business, establishes the right model for success.” Larry Sass, Senior Vice President of Cherokee, added: "India, is one of the fastest growing economies in the world and provides Cherokee with tremendous growth potential. Our new agreement for India and our recently announced Cherokee license agreement for Brazil, represent major accomplishments towards our ‘World Branding’ objectives. The Cherokee brand is now licensed in 28 major countries and we continue to look for the right partners in available markets around the world. In addition, with our broadened international reach, we will also focus on licensing other owned and represented brands from within our portfolio.” 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 other European and Asian countries), Zellers (Canada), Pick ‘n Pay (South Africa), Fawaz Al Hokair (Middle East), Grupo Pão de Acucar (Brazil), S.A.C.I. Falabella (Chile and Peru), Arvind Mills (India) and Comercial Mexicana (Mexico). Premier clients for Cherokee’s Sideout brand include Mervyn's (U.S.) and Shanghai Bolderway (China), and for Cherokee’s Carole Little brands include TJX Companies (U.S., Canada and Europe). About Arvind Mills Ltd. Arvind Mills is India’s largest integrated textile company and operates across the entire value chain from design to fabric to brands. Arvind was the first company in India to bring international brands when they brought Arrow to India. Arvind now has licensing relationships with many international brands like Arrow, GANT and US Polo. JV’s with VF Corporation with brand portfolio of Lee, Wrangler, Nautica, Jansport, Kipling, Hero by Wrangler & Lee Riders, Tommy Hilfiger and most recently Diesel. In addition Arvind also owns a number of successful Indian brands: Flying Machine, Newport, Excalibur and Ruf and Tuf among others. Arvind also owns & operates India’s largest 70 outlet strong value retail chain under the name ‘Megamart.’ 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 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 two 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 risks, uncertainties and other matters can be found in the Company’s Annual Report on Forms 10-K for Fiscal Year 2007, 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.