Cherokee Inc. entered into an exclusive agreement in the U.S. with ACI
International for men's, women's and children's footwear for its
Sideout and Sideout Sport brands.

Among ACI International's stable of footwear brands are L.A. Gear, C9 by Champion, Diadora and Hang Ten.

Jay Kester, Executive VP of marketing for Cherokee Inc., said, “We are pleased to partner with ACI and hope to have product to market in 2010. We are currently in discussions with other premier manufacturers in specific categories in Children's, Junior's, and Young Men's. In addition, we continue to explore opportunities in the performance segment of the market to compliment ACI with our Sideout Sport brand.”

Steve Jackson, Chairman & CEO, ACI International said, “Both Sideout and Sideout Sport have clean and marketable lifestyle heritages and we believe these brands will become a significant part of our portfolio. We look forward to collaborating with The Cherokee Group on various distribution opportunities.”

Robert Margolis, Chairman & CEO of Cherokee Inc., said, “Our strategy is to partner with premier wholesale manufacturers that are capable of supporting the needs of middle market retailers. This is another step towards achieving our goal.”