Dreams, Inc. (NYSE Amex: DRJ) the vertically integrated leader in the licensed sports products industry, today announced an agreement with JCPenney that provides customers the ability to purchase from a tremendous array of licensed sports memorabilia and apparel directly from the retailer’s online sports fan shop at (www.jcp.com). Representing the largest collaboration of its kind for Dreams, Inc., the new site provides an expanded offering of licensed sports merchandise from professional teams, colleges and athletes – all at JCPenney’s signature affordable prices. The new and expanded online sports fan shop will launch in October.

“This new alliance with JCPenney is a great extension to our business,” said Ross Tannenbaum, president and CEO of Dreams Inc. “Dreams, Inc. continues to broaden, and has already worked with a line-up of impressive clients including AOL, USA Today, the Philadelphia Eagles and Sporting News. By aligning with JCPenney, a national retailer with one of the largest general merchandise websites on the Internet and more than 1,100 department stores, we’re able to extend our merchandise offering to the more than half of Americans that the retailer currently serves.”

“We are elated to be working with JCPenney and providing their customers with the most comprehensive assortment of licensed sports items from professional teams, colleges, individuals and legacies,” said Kevin Bates, Dreams Retail president and FansEdge founder. “We will integrate our technology seamlessly into theirs so customers will enjoy the same online shopping experience that they’ve always experienced at jcp.com, but with a much larger dimension of licensed sports products.”

Dreams Retail offers JCPenney the ability to make championship products such as World Series merchandise available to customers immediately. This venture offers customers a significantly larger product mix, with fast delivery and a simple user interface.

“Our partnership with Dreams expands our high-quality offering of sports merchandise, providing more shopping options for our customers,” said Steve Lawrence, executive vice president of men’s apparel at JCPenney. “We know that our customers are passionate about their sports teams and our new and expanded online sports fan shop will allow us to offer them their favorite licensed team product in a quick and more convenient manner.”

DREAMS, INC. trades under the ticker symbol: NYSE Amex:DRJ

www.dreamscorp.com

Statements contained in this press release, which are not historical facts, are forward looking statements. The forward-looking statements in this press release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such statements are indicated by words or phrases such as “anticipates,” “projects,” “management believes,” “Dreams believes,” “intends,” “expects,” and similar words or phrases. Such factors include, among others, the following: competition; seasonality; success of operating initiatives; new product development and introduction schedules; acceptance of new product offerings; franchise sales; advertising and promotional efforts; adverse publicity; expansion of the franchise chain; availability, locations and terms of sites for franchise development; changes in business strategy or development plans; availability and terms of capital including the continuing availability of our credit facility with Comerica Bank or a similar facility with another financial institution; labor and employee benefit costs; changes in government regulations; and other factors particular to the Company.