Cherokee Announces Developments with Two Key Retail Partners

  Cherokee Announces Developments with Two Key Retail Partners

  *Expansion at Target with the Re-Acquisition of the Cherokee School Uniform
                                     Category
  *Extension of Cherokee Brand License Agreement with Comercial Mexicana

Business Wire

SHERMAN OAKS, Calif. -- February 4, 2013

Cherokee Inc. (NASDAQ: CHKE), a leading innovator and global marketer of
style-focused lifestyle brands, announced today that effective January 29,
2013 the Company has re-acquired the Cherokee School Uniform category from
Strategic Partners.

“The acquisition of the Cherokee School Uniform rights from Strategic Partners
allows us to bring a strategic business back within our control,” said Henry
Stupp, Chief Executive Officer of Cherokee Inc. “This is another important
milestone for our Company that will expand our overall product offering.
Additionally, acquiring the Cherokee School Uniform category will further
strengthen our relationship with Target through a multi-year license term,
which includes separate minimum guarantees and additional royalties. We expect
this transaction will be immediately accretive for shareholders, and we will
work closely with Target to expand our product offering for Cherokee
families.”

Cherokee Inc. also announced today the recent extension of its Cherokee brand
license agreement with Comercial Mexicana. The license agreement has been
extended an additional six years through December 31, 2019. As partners for
over six years, Cherokee and Comercial Mexicana have enjoyed mutual success
and both parties look forward to continuing to build and grow the Cherokee
brand throughout Mexico’s retail market.

“Comercial Mexicana has been an exceptional partner of the Cherokee brand, and
we are very pleased to extend our licensing relationship,” Stupp commented.
“Comercial Mexicana is a strong supporter of the Cherokee brand and vision. We
look forward to continuing to roll-out our newly re-branded Comercial Mexicana
locations throughout the year as well as building upon the strong Cherokee
presence throughout Mexico.”

AboutCherokee Inc.

Cherokee Inc.is a global marketer and manager of a portfolio of Fashion and
Lifestyle brands including Cherokee^®,Carole Little^®,Liz Lange^®and
Sideout^®, in multiple consumer product categories and sectors around the
world. The Company has license agreements with premier retailers and
manufacturers covering over 40 countries around the world including Target
Stores (U.S.),Tesco(U.K., Irelandand certain Central European
countries),Zellers (Canada), RT-Mart (Peoples Republic of China), Pick ‘n Pay
(South Africa), Falabella (Chile,PeruandColombia),Arvind Mills(Indiaand
certain Middle Eastern countries),Shufersal LTD.(Israel), Comercial Mexicana
(Mexico), Eroski (Spain), Nishimatsuya (Japan),Magnit(Russia), Landmark
Group’sMax Stores(certainMiddle EastandNorth Africacountries) and
theTJX Companies(U.S.,CanadaandEurope).

Statements included within this news release may contain forward-looking
statements for 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 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 global economic conditions, the financial condition
of the apparel and retail industry, adverse changes in licensee or consumer
acceptance of products bearing the Company’s brands the ability and/or
commitment of the Company’s licensees to design, manufacture and market
Cherokee, Liz Lange, Completely Me, Sideout and Carole Little branded
products, the Company’s dependence on Target for most of the Company’s
revenues and the Company’s dependence on its key management personnel. The
risks included here are not exhaustive. A further list and description of
these risks, uncertainties and other matters can be found in the Company’s
Annual Report on Form 10-K for Fiscal Year 2012, and in its periodic reports
on Forms 10-Q and 8-K. Given these risks and uncertainties, you should not
place undue reliance on forward-looking statements as a prediction of actual
results. The Company disclaims any intent or obligation to update any of the
forward-looking statements contained herein to reflect future events and
developments.

Contact:

Cherokee Inc.
Mark DiSiena, Chief Financial Officer
(818) 908-9868
or
Addo Communications, Inc.
Patricia Nir/Kimberly Esterkin
(310) 829-5400
 
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