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Nitches Secures $3.15 Million Convertible Debt PIPE:

Net Proceeds of $2.95 Million Bolster Working Capital

Nitches, Inc. (NASDAQ: NICH) announced today that is has entered into a Securities Purchase Agreement with two unaffiliated institutional investors for the sale of 12.0% Subordinated Convertible Debentures and Common Stock Purchase Warrants. The transaction involved the issuance of an aggregate of $3.15 million principal amount of Debentures and 577,500 Warrants, and resulted in net proceeds of $2.95 million, after deduction of fees and expenses. Granite Financial Group, an investment bank, acted as advisor to Nitches and received a $150,000 debenture in payment of its services.

"This financing bolsters our working capital, providing additional capital to increase our core business as it develops," commented Steve Wyandt, CEO of Nitches. "In addition, it will increase our ability to be opportunistic about strategic initiatives when they arise."

Interest on the Debentures accrues at the rate of 12% per annum and is payable quarterly on February 28, May 31, August 31, and November 30, commencing on August 31, 2007. The Debentures are due December 31, 2009. Nitches has the right to redeem the Debentures, or any part thereof, before the maturity date for cash upon notice to the holder upon payment of 110% of the amount outstanding on the Debentures being redeemed.

The holders of the Debentures have the right to convert at any time, at their election, at a conversion price of $4.12 per share, subject to adjustment including full-ratchet anti-dilution protection. Nitches has the right to force conversion of the Debentures, subject to certain restrictions, at the lower of the conversion price or a 15% discount to the variable weighted average price for Nitches' Common Stock.

Nitches issued an aggregate of 577,500 Warrants in connection with the transaction. The Warrants are five (5) year warrants to purchase Common Stock at a price of $4.12 per share, subject to adjustment, including full-ratchet anti-dilution protection.

As part of the transaction, Nitches entered into a Registration Rights Agreement with the investors. Nitches agreed to file a registration statement covering the resale of the shares of Common Stock that may be issued to investors upon the conversion of the Debentures and the exercise of the Warrants, and to maintain the effectiveness of that registration statement (subject to certain limitations) for a period of time until the holders can sell the underlying Common Stock without volume restrictions under Rule 144. If Nitches fails to meet its registration obligations, it may be required to pay to the investors in cash liquidated damages. The amount of liquidated damages is equal to 1.0% of the principal amount outstanding for any 30 day period, or pro rata portion thereof, that such a failure continues during the first year the Debenture is outstanding and 0.5 % of the principal amount outstanding for any 30 day period, or pro rata portion thereof, that such a failure continues during the second year the Debenture is outstanding.

Nitches, Inc. has been designing and marketing quality apparel for niche markets since 1971. The Company's women's product lines include sleepwear and loungewear by Body Drama®, women's western wear and outerwear by Adobe Rose®, Saguaro® and Southwest Canyon®. The Company's menswear offerings include Nat Nast®, Dockers® and Newport Blue® swimwear and graphic t-shirts, The Skins Game golf apparel®, and ZOIC® performance cycling apparel. The Company's Designer Intimates subsidiary markets sleepwear, robes, loungewear, and daywear under the following brands: Gossard®, Derek Rose®, Princesse tam tam®, Crabtree & Evelyn®, Anne Lewin®, Dockers® and Claire Murray®. The Company also distributes candles and home accessories under the Bill Blass® Home Décor brand and recently secured the license for developing and distributing similar categories of home décor items under the Gail Pittman® brand. The Company's products are sold to better department stores, specialty boutiques, moderate department stores, and national and regional discount department stores and chains. Additionally, the Company develops and manufactures private label products for many leading retailers and multi-channel marketers.

Nitches, Inc. is headquartered in San Diego, California with offices in Los Angeles, New York City, Dallas, and Hong Kong. The Company's shares are traded on the NASDAQ Capital Market under the symbol NICH. Visit our web site at http://www.nitches.com.

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 involve known and unknown risks and uncertainties that may cause the Company's actual results in future periods to differ materially from forecasted results. Those risks include a softening of retailer or consumer acceptance of the Company's products, pricing pressures and other competitive factors, or the unanticipated loss of a major customer. These and other risks are more fully described in the Company's filings with the Securities and Exchange Commission.