Blue Nile Adds Luster To Customer Service With Launch Of Financing, Insurance Options; Program Offers Virtually Sole Source for Insuring Loose Diamonds

Business Wire, Sept 11, 2000

Business Editors

SEATTLE--(BUSINESS WIRE)--Sept. 11, 2000

Blue Nile Inc., the leading online retailer of diamonds and fine jewelry, today announced agreements with both MBNA America Bank, N.A. and the Chubb Group of Insurance Companies to provide consumers with financing and insurance options through Blue Nile's Web site (www.bluenile.com).

The new programs are a continuation of Blue Nile's quest to make it easier for consumers to purchase diamonds and fine jewelry by providing all the elements required to make an informed and confident purchase online.

"We are excited to partner with premier companies such as Chubb and MBNA," said Mark Vadon, CEO of Blue Nile. "MBNA has a proven track record of consumer financing and can help customers pay for important lifetime purchases - such as an engagement ring - over a comfortable period of time for them; while Chubb is the leading jewelry insurer for service and quality and can help provide our customers with something priceless: peace of mind. We look forward to working with both companies to add a new dimension to our customer-service offerings."

The Blue Nile Financing Program will be accessible via www.bluenile.com, but will be managed independently by MBNA, the world's largest independent credit-card lender. With a minimum $750 purchase and acceptance of a consumer credit application, MBNA will provide Blue Nile customers a line of credit up to $25,000 - and, in most cases, approval is possible within seconds. Once the line is activated, the customer can make additional purchases while making convenient payments on the existing balance. No annual fee is assessed and interest rates are competitive.

"We're delighted to partner with Blue Nile," said Greg Bacchieri, senior vice chairman of MBNA. "We look forward to tailoring financing options to fit the unique needs of Blue Nile customers."

The Blue Nile/Chubb Insurance Program has been developed to provide customers with guidance on protecting their jewelry purchases and determining the right amount of coverage all in a fast and convenient way. The Blue Nile/Chubb Insurance Program is virtually the only available way for consumers to insure their loose diamonds - a concern for the purchaser of a fine stone who has yet to decide on a setting. Most insurance companies require that diamonds be set before insurance is provided, which can leave consumers in a vulnerable position. Also, consumers cannot always rely on their homeowners' policies for adequate protection. Many homeowners' policies limit jewelry coverage to $1,000 and provide no coverage for lost or misplaced jewelry. Chubb's program with Blue Nile covers theft, loss, damage, and mysterious disappearance, with no deductible as well as a "customer's choice" replacement policy and the ability to put the policy in the name of a gift recipient. Flexible payment plans are available.

"Together with Blue Nile we aim to provide specialized guidance for the fine-jewelry buyer before, during, and long after the sale," said Mary Ann Avnet, marketing manager for Chubb's Personal Lines department. "And, if the owner wishes, we can extend coverage to pieces he or she already owns."

The Blue Nile Financing Program will be available nationwide beginning in mid-September. The Blue Nile/Chubb Insurance Program, which is currently available, also applies to U.S. residents, with the exception of Wyoming. The program will be available in Wyoming on Jan. 1, 2001.

In August, Blue Nile received the distinction of being among the "Best of the Best" as Forbes Favorite online jeweler, the top honor in the publication's survey of the Internet's best sites.

About Blue Nile Inc.

Blue Nile, the online leader in the diamond and fine jewelry category, located on the Web at www.bluenile.com, offers consumers a better way to buy diamonds and fine jewelry. Blue Nile provides an exceptional collection of classically styled jewelry selected according to high standards of quality, beauty and value. Cleanly designed and easy to navigate, the site offers the in-depth education necessary to make informed purchases with confidence. All Blue Nile jewelry is shipped free of charge, guaranteed and returnable within 30 days and transactions are covered through SSL technology - which ensures an online purchase experience that's risk-free. Based in Seattle, Blue Nile is privately held with investments from Bessemer Venture Partners; Trinity Ventures; Kleiner, Perkins, Caufield & Byers; Weiss, Peck & Greer Venture Partners; Integral Capital Partners; Vulcan Ventures Inc., and Comdisco Ventures. The company can be reached by phone at 800/242-2728.

About MBNA

MBNA Corporation (NYSE:KRB), a bank holding company and parent of MBNA America Bank, N.A., a national bank, has more than $76.3 billion in managed loans. MBNA, the largest independent credit card lender in the world, also provides retail deposit, consumer loan, and insurance products. MBNA.com (www.MBNA.com) provides credit card, consumer loan, retail deposit, travel, and shopping services.