People`s Liberation, Inc. Files Suit Against Charlotte Russe Merchandising, Inc. Seeking Over $60 Million in Damages

LOS ANGELES--(Business Wire)--
People`s Liberation, Inc. (OTCBB:PPLB), the designer and distributor of high-end
casual apparel under the brand names People`s Liberation, William Rast and J.
Lindeberg, today announced that it filed suit in Los Angeles Superior Court
against Charlotte Russe Merchandising, Inc. for breach of a written contract and
tort recovery seeking over $60 million in compensatory damages and punitive
damages.

The suit alleges that Charlotte Russe approached People`s Liberation in 2008 to
exclusively license the People`s Liberation Brand in the United States and all
of Central and North America. To induce People`s Liberation to stop providing
its premium denim, knit and accessory products to fine department stores such as
Nordstrom, Saks Fifth Avenue, and Neiman Marcus, Charlotte Russe executed a
multiyear contract in December 2008 that guaranteed minimum purchases of product
during the first three contract years of $65 million.

The complaint alleges that Charlotte Russe, without justification or legitimate
reason, terminated its contract with People`s Liberation within the first year
of the relationship. This termination occurred shortly after Charlotte Russe was
purchased by the private equity firm of Advent CR Holdings, Inc. The complaint
further alleges that Advent CR Holdings, Inc., its parent Advent International
Corporation, and Charlotte Russe's management wanted to take the company in a
new direction and, in doing so, they were prepared to ignore prior contractual
obligations.

"Throughout 2009, we have provided over $6 million in approved product shipments
and services to Charlotte Russe without any objections and have fully performed
under the agreement," said Colin Dyne, People`s Liberation`s CEO. "Without any
prior warning or opportunity to cure as required under our agreement with
Charlotte Russe, we received a termination letter. The contract is not
terminated, and Charlotte Russe will pay us every penny it is contractually
obligated to pay."

ABOUT PEOPLE`S LIBERATION, INC.

Los Angeles-based People`s Liberation markets and sells high-end casual apparel
under the brand names "People`s Liberation," "William Rast" and, in the United
States, "J. Lindeberg." The People`s Liberation apparel line is distributed
exclusively through Charlotte Russe retail stores in North and Central America.

Except for historical information contained herein, the statements in this
release areforward-lookingand made pursuant to the safe harbor provisions of the
PrivateSecurities Litigation Reform Act of 1995. Forward-lookingstatements are
inherentlyunreliable and actual results may differ materially. Examples of
forward-lookingstatements in this news release include management`s belief that
it has provided approved product shipments throughout the year without any
objections from Charlotte Russe, that People`s Liberation has fully performed
under its agreement with Charlotte Russe, and that the agreement has not been
terminated and that People`s Liberation is entitled to all amounts due it by
Charlotte Russe thereunder.These matters ultimately will be decided in
litigation, the outcome of which cannot be known at this time.TheCompany
undertakes no obligation to publicly update or revise any
forward-lookingstatements, whether as a result of new information, future events
or otherwise.

People`s Liberation
Darryn Barber, President and CFO
213-745-2123
or
Addo Communications, Inc.
IR Contact
Patricia Dolmatsky/Andrew Greenebaum
310-829-5400

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