September 2003

1. September 2003

2. Safe Harbor Disclosure Certain material in this presentation, as well as press releases and other written or oral statements we may make may contain “forward looking statements” within the meaning of the private securities litigation reform act of 1995. When used, the words “anticipates”, “believes,” “estimates,” “objectives”, “goals”, “aims”, “hopes”, “may”, “likely”, “should” and similar expressions are intended to identify such forward-looking statements. In particular, statements regarding our goals or expectations regarding our future revenues and earnings, the likelihood of increased sales by certain of our current and future licensees, such as Target Stores, the likelihood in the achievement of certain royalty rate reductions, our prospects for obtaining new licensees and our prospects for obtaining new brands to acquire or represent. Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by any forward-looking statements. 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 we operate, adverse changes in licensee or consumer acceptance of products bearing the Cherokee or Sideout brands as a result of fashion trends or otherwise, the ability and/or commitment of our licensees to design, manufacture and market Cherokee and Sideout products, our dependence on our key management personnel and the effect of breach or termination by us of the management agreement with our Chief Executive Officer. Actual results could vary materially from these statements or current trends. Investors should refer to Cherokee’s filings with the Securities and Exchange Commission, including form 10-K and 10-Q for a further description of risk factors.

3. Agenda • Introduction / Background • Retail Direct Licensing • The “Cherokee” equity • The “Sideout” equity / acquisition of brands • Other brand representations • Financials • Growth opportunities • Conclusion

4. CHEROKEE is an innovator in global consumer brand management who pioneered the “Retail Direct Licensing” concept. CHEROKEE markets, licenses and manages brands in various consumer product categories (with no inventory exposure or manufacturing risks) ie. apparel, home, food and entertainment. Our objective is to: “Facilitate strategies for our clients and ourselves that dramatically increase profitability and shareholder value.” Represented Brands House Beautiful Mrs. Fields Hot Kiss Liberty Kids (DIC Entertainment) Latina Redsand Owned Brands Cherokee Sideout Carole Little Chorus Line

5. Background of Cherokee • 22-year history as full service apparel & footwear supplier, marketing, manufacturing, product development, etc. • May 1995 – Ceased manufacturing, sold off inventories • Restructured business model to maximize Cherokee’s brand equity while reducing business risk • Pioneered and subsequently expanded retail direct licensing concept with additional retailers and brands • Expanded concept internationally with three of the largest retailers outside the U.S.

6. Pioneering Retail Direct Licensing • Combines the best of traditional consumer brands with private label • Cherokee licenses brands directly to retailers subject to quality and image controls • Partner with retailer to maximize brand / retailer connection with consumer – source of product differentiation (exclusivity) • Retailers leverage their economies of scale to source products and reduce pricing by eliminating conventional wholesale margins • Win – Win – Win • Consumers  well known quality brands at moderate prices • Retailers  higher gross margins and profitability • Cherokee  increased profitability, reduced profit risk

7. Conventional Cherokee Private Label Brands (Store Brands) • Cost $8.00 $8.00 $8.00 • Brand Expense1 $4.90 $0.502 $1.003 • Total Cost $12.90 $8.50 $9.00 • Retail $28.00 $22.00 $20.00 • Mark Up % 53.92% 61.39% 55.00% • Mark Down% 30.00% 25.00% 25.00% • Simple G.M.% 4 40.09% 51.73% 43.75% 1 Brand expense calculated at 38% margin. 2 Licensing feeis based on actual retail selling price (which includes 25% Mark Downs) before calculating 3% royalty. 3 To build awareness over a 5-year development period of Private Label requires a minimum investment of 5% of retail sales. 4 Exclusive of freight, shrink & discount earned. Best of Both Worlds for Retailers Retailers deliver recognized consumer brands while generating higher gross margins

8. Results of Retail Direct Licensing • Cherokee has become a portfolio of pre-eminent global brands with over $2.5 billion in worldwide retail sales • Cherokeehas no inventory, manufacturing or product risk • High operating margins ~ 70% • Built a global network of strong relationships with top retailers around the world • Unique business model with consistent earnings growth • Strong predictable cash flow with minimal capital expenditure requirements

9. “Cherokee” Equity • Rich history: established in 70’s – 80’s as brand featuring quality, comfort, style and value • 30 year heritage brand which has evolved into one of the leading global family lifestyle brands • NPD study on Anchor Brand #1 in Apparel Sales by Door • NPD study on brand penetration at retail • Conveys an American sensibility that resonates throughout the world • One of the fastest growing brands worldwide, from $250 million in mid 90’s to $2 Billion in eight years • Now, 3rd* largest licensed fashion brand in the world behind Calvin Klein and Polo NPD ranking by gender in units Women 2nd (above Liz Claiborne and Old Navy) Men 3rd (above Polo and Old Navy, behind Gap & Faded Glory) Girls 5th (right behind Faded Glory, top three are undergarment --- Hanes etc) Boys 5th (right behind Nike, top two are undergarment --- Fruit Of The Loom) * Source: License Magazine April 2002

10. Cameron Diaz - Cherokee Girl 80’s / 90’s

11. Jill Goodacre Cherokee Girl 80’s / 90’s

12. Cherokee Brand Licensing Partners

13. Domestic

14. One Of The Fastest Growing Brands In The World

15. Cherokee Licensing Partner – Target, USA • Established in 1995, reaffirmed in 1997 and extended through 2005, perpetual annual `renewal options thereafter • Cherokee branded products… • From zero to $2.0 billion in retail sales • In excess of 5.5% of Target Stores total sales • Family Lifestyle Anchor Brand--Products include men’s, women’s and children’s apparel, watches, jewelry, sunglasses, footwear, intimate apparel, accessories for all ages

17. International

18. One Of The Fastest Growing Brands In The World

19. Cherokee Licensing Partner – Zellers, Canada • Established in 1997, initial agreement continues through 2004, exercised first five year renewal option extending to January 2008 • Cherokee branded products… • Zero to C$220 million (U.S. $145 million) • Over 5% of Zellers stores total sales • Products include men’s, women’s and children’s apparel, infant’s accessories, watches, jewelry, sunglasses, footwear, intimate apparel, accessories, home furnishings • Cherokee Brand has expanded beyond apparel to include recreational and camping products and bicycles • Increasing merchandise and financial resources to support Cherokee Brand

22. Cherokee Brand Licensing Partner – Tesco, U.K. • Tesco is the top retailer in the United Kingdom & Ireland • Cherokee contract signed in 2001, agreement continues through 2005, 3-year renewal options available • Cherokee products successfully launched in Fall 2002: • Men’s, Women’s, Boy’s & Girl’s apparel in casual denim & sportswear, fashion accessories and footwear categories • Based upon 2H run rate, expect ~ $150 million in sales in first 12 months after launch

24. Cherokee Brand Licensing Partner – Carrefour Outside North America & U.K. • Carrefour is world’s largest retailer outside North America • Cherokee contract signed in 2000, agreement continues through 2004 with 3-year renewal options available • Cherokee products successfully launched in Spring 2002: • Men’s and Women’s apparel and accessories in Basic, Denim, Fashion and Outdoor categories • Initial launch countries in 2002; Spain, Portugal and Greece • Launched test in France and Italy in Spring ’03—Going to 100 stores in Fall of 2003

26. One Of The Fastest Growing Brands In The World

27. “Sideout” Equity --- Acquisition • Founded in early 80’s as California lifestyle brand • The original beach volleyball brand • Acquired by Cherokee in 1997 • Signed Mervyn’s “Retail Direct” agreement in 1998 • Global expansion in 1999 • Growing global lifestyle brand…retail sales increase from $30 million to $125 million since acquisition

28. Sideout Heritage

29. Sideout Licensing Partners A Division Of Otto Versand

30. Sideout Global Licensing Partners • Mervyn’s exercised renewal option and extended license agreement for additional three year term; Renewal term commenced Feb 1, 2002 and continues through Jan 31, 2005 • Sideout brand sold in U.S., Canada, Japan, Germany, Austria and Switzerland (soon China) • Product categories include Men’s, Women’s and Children’s apparel, footwear and accessories

31. Sideout - In Store

32. Other Acquisition Opportunities • Very selective in approach • High equity value, low cost strategy • Ability to leverage broad based retail network

33. Carole Little Brand Acquisition • Acquired out of bankruptcy (through auction) the following brands for under $3M – Carole Little, Saint-Tropez West, Chorus Line, All That Jazz & Molly Malloy • Concluded multi-year Retail Direct Agreement with TJX Companies for Carole Little – Apparel (Product in stores fall 2003) • Concluded multi-year licensing agreement with Gilrichco For Chorus Line, All That Jazz, Tickets and Molly Malloy • Minimum guarantees from agreements exceed brands acquisition purchase price

34. Other Brand Representations • Concept of “Retail Direct Licensing” in early stages worldwide • Opportunities exist in: • Apparel • Home Furnishings • Food / Housewares • Entertainment • Facilitated multi-year agreement between Hearst Publications and May Company for House Beautiful Brand • Signed Exclusive agreement to represent Latina Magazine in September 2003 • Facilitated multi-year agreement between Hot Kiss and Zhejiang Xuege Fashion Co., LTD in China • Facilitated multi-year agreement between DIC Entertainment and Toys “R” Us (Liberty’s Kids) • Assisted Mossimo with Target, receive 15% of all royalties Mossimo gets from Target, judgment entered by Court in June 2003

35. Brand Representation

38. Cherokee Financials

39. Royalty Revenue Growth $33.1 $30.7 $28.3 $24.7 $ Millions $19.3 (1) $8.7 $8.6 $1.4 (1) (1) FY 1998 (8 month year)

40. Earnings Per Share (2) (2) (1) (1) FY 1998 (8 month year) (2) Before NOL Benefit and Asset Sales

41. EBITDA Growth $ Millions (1) (1) (1) FY 1998 (8 month year)

42. Equity Valuation • FY 2003 revenue $33.1 M up 8% for year, Net Income $13 M up 8% for year, 2Q 2004 revenue up 15%, Net Income up 13%, EPS $0.43 vs. $0.38, 1H up 10% and 7%, EPS $1.06 vs. $0.99, • Strong cash flow with “guaranteed” contractual minimums over $17M/yr • Strengthening balance sheet – positive/growing net worth • Securitization fully retired by early 2004 • Significant operating leverage – $0.80 of every $1 of incremental royalty to operating income • Very attractive returns on revenue, income and assets • Over $70M paid in dividends and distributions since 1996 • Repurchased $6M of common stock since July 1999 • Undervalued Equity (no Cherokee trademark value on balance sheet) • Misunderstood equity value Recent Transactions (2001-2002): • Lands End $1.9 Billion • Mc Naughton $500 Million • L.E.I. $300 Million • Ellen Tracy $180 Million • Gloria Vanderbilt $140 Million • CHEROKEE (MKT CAP) ~ $160 Million

43. Growth Opportunities: • Continue to grow with current licensees • Expand product categories with current licensees • New licensing agreements for owned brands • Sign new licensing agreements for brand representation • Selective brand acquisitions

44. Investment Highlights • Over $2.5+Billion multiple brand franchise with global reach • Proven business model w/significant scalability/operating leverage • No inventory or manufacturing risk • Global network of relationships with top retailers worldwide • Consistent performance through business cycle – seven years of consecutive earnings growth • Strong cash generation - $17 million of “minimum guaranteed” royalties • Company scheduled to be debt free by early 2004 • Potential free cash flow available to enhance shareholder value • Undervalued franchise relative to recent transactions • Focused/Incentivized management