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.

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Other key clients of Cherokee include Hearst Publications and Solera
Capital (U. Exel 's customers
include over 75 percent of the world's largest, quoted non-financial
companies.exel .

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"
Anthony Damiani, Vice President, Cherokee, added, "We are thrilled
to have partnered Rachel Ashwell's Shabby Chic with Hudson Bay
Companies.).kronos.

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Forward-looking
statements 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. Learn more about Kronos'
high-impact enterprise solutions at www.

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After an extensive
review of workforce management systems, Exel chose Kronos to provide a
centralized solution for consistent application of work rules across
the company's Contract Logistics and Freight Management locations. All other product and company names mentioned are
used for identification purposes only and may be trademarks of their
respective owners.

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The combination of Rachel's design point of view, and HBC's
national distribution, will create a retail direct program like no
other in Canada.S.

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"
Brian Dell, President of Shabby Chic, said, "We are pleased that
Cherokee Inc., Canada and Europe).

Exel implements Kronos Workforce Central for U.S. locations

Exel's comprehensive range of innovative
logistics solutions encompasses the entire supply chain from design
and consulting through freight forwarding, warehousing, and
distribution services to integrated information management and
e-commerce support.K.

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S.7 billion, employs over 109,000 people in 2,050
locations in more than 120 countries worldwide.

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S. The Company disclaims any intent or obligation to update
any of the forward-looking statements contained herein to reflect
future events and developments.
associates.-listed, FTSE 100 company, with
turnover of GBP 6.


berna reflecting

----Cherokee Inc.
(NASDAQ:CHKE) today announced its client Rachel Ashwell's Shabby Chic,
a leading designer home brand, has entered into an exclusive
international license agreement with Hudson Bay Companies for Canada. was able to help us partner with the premier retailer in
Canada, and know the brand will be a huge success in the Hudson Bay
family of stores.

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. 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.

Business Editors

CHELMSFORD, Mass. and Canada.S. More information is available at www.

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Consumers connect to Rachel's designs because of their comfort, beauty
and quality.S. Exel, a U. Kronos helps organizations staff, develop, deploy, track,
and reward their workforce, resulting in reduced costs, increased
productivity, better decision-making, improved employee satisfaction,
and alignment with organizational objectives.

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K.
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 a single
licensee for most of the Company's revenues, the Company's dependence
on its key management personnel, and adverse determinations of claims,
liabilities or litigations and the effect of a breach or termination
by the Company of the management agreement with the Company's CEO."
"Centralized installation, maintenance , and control will ensure
that common work rules -- such as when Exel should pay overtime -- are
consistently applied throughout the U.

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Premier clients for the Cherokee brand around
the world include Target Stores (U.
"Kronos' functionality and flexible support were desirable aspects
of the workforce management technology we were seeking," said Mike
Gordon, Exel's financial controller, Americas.

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And, as leaders in their space, they look to a
workforce management vendor capable of delivering tangible results.

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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 2005, and in its periodic reports on Forms 10-Q and 8-K
(if any).S.

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, 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.


Kronos, Workforce Central, and the
Kronos logo are registered trademarks of Kronos Incorporated or a
related company.

Sites included in this category have significant information about such items , their aesthetics, and/or their functions.

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S.), Tesco (U.

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, Ireland and
certain other European and Asian countries), Zellers (Canada),
Carrefour (selected countries in Europe and South America) and Grupo
Aviara (Mexico).com

About Kronos Incorporated

Kronos Incorporated is the most trusted name in workforce
management. More than 20 million
people use a Kronos solution every day.com
(C) 2005 Kronos Incorporated.

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Sandi Stuart, Executive Vice President, Cherokee, said, "Rachel
Ashwell's Shabby Chic products are unique because they have the allure
of time worn objects and the appeal of simple, practical living."

About Cherokee Inc.

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Detailed terms of the multi -year agreement were not disclosed, but
it includes a wide range of categories including home textiles ,
furnishings and accessories. Premier clients for Cherokee's Sideout brand include
Mervyn's (U . When used, the words "anticipates,"
"believes," "expects," "may," "should" and similar expressions are
intended to identify such forward-looking statements., which solves a common
liability issue ," according to Dave Roth, director of vertical
marketing at Kronos. "Enterprise organizations realize that there is a
significant impact on operating expenses when they effectively manage
their workforce .

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Business Editors

VAN NUYS, Calif.) and Shanghai Bolderway (China), and for Cherokee's
Carole Little brands include TJX Companies (U."

About Exel

Exel is the global leader in supply chain management, providing
customer-focused solutions to a wide range of manufacturing , retail,
and consumer industries.

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----

Supply chain management leader manages largest controllable
expense across hundreds of locations with Kronos

Kronos(R) Incorporated (Nasdaq: KRON) announced today that Exel,
the global leader in supply chain management, has selected the latest
version of the Workforce Central(R) suite for its 15,000 employees in
more than 600 locations across the U. "As we began to
collaborate with Kronos, we identified several paths to attaining
efficiencies by implementing one centralized database for our U.

Tribal arts comprise items made by tribal peoples , usually with utilitarian or ritual purposes, with artistic qualities reflecting the cultures in which they were made.

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Cherokee Inc. Facilitates Agreement for Rachel Ashwell's Shabby Chic in Canada



Cherokee Inc.

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