Cherokee Inc. Enters into License Agreement with Evy of California for its Sideout Brand

Cherokee Inc. (NASDAQ: CHKE), a leading licensor and global brand management company, today announced that it has entered into an exclusive agreement in the U.S. with Evy of California for Girl’s 0-16 sportswear for its Sideout brand. Evy, with over 60 years of experience, is a powerful force in the children’s market and has long standing successful relationships with its customers. This marks the fifth licensing announcement for the Sideout brand in the last eight weeks.

Kevin Krieser, President & COO of Evy of California, said, “We are thrilled to be part of the group of premier manufacturers being assembled for Sideout and believe we have tremendous opportunities to collaborate and build the Sideout brand together.”

Jay Kester, Executive Vice President of Marketing for Cherokee Inc., said, “We are pleased to partner with Evy for Girl’s sportswear. This will continue to build on the hundreds of millions of dollars of Sideout product sold over the past several years.”

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.

About Evy of California

Evy of California, is a premier Women’s, Junior’s and Girl’s fashion design house specializing in branded collections across all retail price points. Evy owns and operates 10 brands including Fleurish Clothing, a Junior Top Department Store brand, Jalate Regulated Denim, a fashion woven bottom collection and Kidture, a Girl's sportswear line. In addition to managing its own brands, Evy holds the licenses for Hello Kitty, Skelanimals, Pucca, Extra Frosting, Kawaii and several other top properties. With offices in Los Angeles, New York, Seattle, Puebla, Mexico and Shanghai, China Evy embodies the same transparent business practices it was founded on in 1949. Design, quality and honesty are paramount.

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.