“This is a very significant partnership for our company. We believe the Cherokee brand will dramatically enhance our offerings. Our plan is to launch Cherokee products within the next 12 months in over 800 stores nationwide.”

Founded in 1956, Nishimatsuya is the premier specialty chain selling baby and children’s products in over 760 locations throughout Japan. The company’s focus is to concentrate on new store opening in clusters (both free-standing and in open-mall shopping centers) and building dominant groups of stores that each serve a defined territory, thus making Nishimatsuya dominant in every part of the country. Their goal is to operate over 1,000 stores by 2015.

Kazuo Fujisaki, Senior Vice President, Nishimatsuya Chain Co., Ltd., said, “This is a very significant partnership for our company. We believe the Cherokee brand will dramatically enhance our offerings. Our plan is to launch Cherokee products within the next 12 months in over 800 stores nationwide.”

Larry Sass, Cherokee's Group President, Asia said, “Nishimatsuya is the premier specialty children’s retailers throughout Japan. We are honored to partner with them and believe that working together, Cherokee will become one of the largest brands in Japan and we look forward to much success. The Cherokee Brand is licensed in over 30 countries around the world and this agreement further enhances our Global Brand Vision. We will continue to explore opportunities for further global growth.”

About Cherokee Inc.

Cherokee Inc., is a global marketer and manager of a portfolio of LIFESTYLE BRANDS it owns and represents in multiple consumer product categories and sectors around the world. The Company has license agreements with premier retailers and manufacturers covering over 30 countries around the world including Target Stores (U.S.), Tesco (U.K., Ireland and certain Central European countries), Zellers (Canada), RT-Mart (Peoples Republic of China), Pick ‘n Pay (South Africa), Falabella (Chile, Peru and Colombia), Arvind Mills (India and certain Middle Eastern countries), Shufersal LTD. (Israel), Comercial Mexicana (Mexico), Eroski (Spain) and the TJX Companies (U.S., Canada and Europe).

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, Sideout and Carole Little branded products, the Company’s dependence on a select group of licensees 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 2010, and in its periodic reports on Forms 10-Q and 8-K (if any). 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.