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LOS ANGELES — People’s Liberation, Inc., the designer of high-end contemporary apparel under the brand names People’s Liberation™ and William Rast™, announced today that the Company has entered into a consulting agreement with Akari Enterprises LLC, the consulting firm of Andreas Kurz, to spearhead each brand’s international distribution expansion.

Akari Enterprises LLC will be responsible for negotiating exclusive distribution agreements on a global scale and helping manage current People’s Liberation and William Rast international distribution relationships. «We believe this arrangement will increase awareness of the People’s Liberation and William Rast brands and contribute to our future sales growth in the international marketplaces,» said Daniel Guez, People’s Liberation chairman and chief executive officer.

In March 2005, Andreas Kurz formed Akari Enterprises LLC, a consulting firm specializing in international expansion, licensing, retailing and branding for apparel companies. Previously, Mr. Kurz was chief executive officer of 7 For All Mankind where he established a foundation for their international growth, product extensions, and licensing. His career also included serving as CEO at Diesel USA, the largest subsidiary of Diesel SpA. He also held numerous senior positions at Hugo Boss AG including president and CEO of Hugo Boss USA. During his 13-year tenure at Hugo Boss, Mr. Kurz also directed the international sales in 80 markets including Far East Asia and Japan.

The three-year consulting agreement provides for commissions to be paid to Akari Enterprises LLC based on a defined formula related to net international sales.

«Our goal is to make People’s Liberation a global player in the fashion industry,» said Daniel Guez. «Andreas is an industry veteran. With his background and years of international business experience, we believe he is the right person to lead us toward our goal.»

Andreas Kurz commented, «I have a lot of respect for what Daniel and his team have created in such a short time. Daniel has a keen eye for product and his relationships with celebrities, including Justin Timberlake and Trace Ayala, are genuine. I am excited to contribute my international experience to the overall success the People’s Liberation and William Rast brands are already enjoying.»

About The Company

Based in Los Angeles, People’s Liberation, Inc. designs, markets and sells premium contemporary apparel under the brand names People’s Liberation and William Rast. The clothing lines consist of premium denim, knits, wovens, and outerwear for men and women. In the United States, the Company distributes its merchandise to better department stores and boutiques, including Nordstrom, Bloomingdales, Neiman Marcus, Atrium and Fred Segal. Outside the U.S., the Company sells its products directly and through distributors to better department stores and boutiques, such as Mitsukoshi in Japan, TNT in Canada, Jades in Germany and Sears in Mexico City. For more information, visit www.PeoplesLiberation.com and www.WilliamRast.com.

Forward-Looking Statements

Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently unreliable and actual results may differ materially. Examples of forward looking statements in this news release include statements that the new consulting agreement with Akari Enterprises will increase awareness of the People’s Liberation and William Rast brands and contribute to the Company’s future sales growth in the international marketplaces. Factors which could cause actual results to differ materially from these forward-looking statements include such factors as fluctuations in demand for the Company’s People’s Liberation and William Rast products in the international marketplaces, the Company’s ability to maintain customer and strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of the company’s liquidity and financial strength to support its growth, and other information that may be detailed from time to time in the Company’s filings with the United States Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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