SAN DIEGO, CA -- (Marketwire) -- 08/21/08 -- Nitches, Inc. (NASDAQ: NICH) announced today the receipt of a letter from The Nasdaq Stock Market LLC ("Nasdaq") indicating that as a result of the death of director T. Jefferson Straub, the Company no longer complies with the audit committee requirement set forth in Nasdaq Marketplace Rule 4350(d)(2). This rule requires the audit committee of each Nasdaq issuer to have at least three independent members on its audit committee. As a result of Mr. Straub's passing away, we only have two of the three required independent audit committee members.

However, consistent with Nasdaq Marketplace Rule 4350(d)(4), we have until the earlier of our next annual shareholders' meeting or August 10, 2009 to regain compliance with Nasdaq Marketplace Rule 4350(d)(2), or if our next annual shareholders' meeting is held before February 9, 2009, then we must evidence compliance no later than February 9, 2009. We are currently in the process of seeking and evaluating candidates to fill the vacancy created by Mr. Straub's passing away and we intend to appoint a new director within the cure period.

About Nitches

Nitches is headquartered in San Diego, California with offices in New York City, Los Angeles, Dallas, Austin and Hong Kong. The Company's shares are traded on the NASDAQ Capital Market under the symbol NICH.

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, among other things, 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. The Company's results may also differ materially from period to period due to the seasonal nature of the Company's product lines. These and other risks are more fully described in the Company's filings with the Securities and Exchange Commission.