Bluefly Regains Compliance with Nasdaq Requirements

Business Wire, April 22, 2008

NEW YORK -- Bluefly, Inc. (NASDAQ Capital Market: BFLY), a leading online retailer of designer brands, fashion trends and superior value (www.bluefly.com), today announced that it had regained compliance with all Nasdaq listing requirements.

Bluefly, Inc. had previously announced that it was not in compliance with the $1.00 minimum per share requirement for continued listing as set forth in Marketplace Rule 4310(c)(4), and had been granted an extension by the Nasdaq Listing Qualifications Panel to regain compliance. Because Bluefly's Common Stock closed at a price above $1.00 or more for ten consecutive trading days, it regained compliance with such rule as of April 17, 2008. In addition, on April 16, 2008, Bluefly received a letter from the Nasdaq Staff stating that it had determined that the company had failed to comply with the shareholder approval rules set forth in Marketplace Rule 4350(i)(1)(A) because certain warrants issued to stockholders of Bluefly, Inc., who have representation on the Board of Directors, had originally been issued with an exercise price based on the twenty-day trailing stock price, which was lower than the closing price of the Company's Common Stock on the day prior to issuance.

While the warrants had been issued in consideration for the financing commitment provided by these shareholders, Nasdaq advised that they could be deemed equity compensation to affiliated parties and therefore subject to Nasdaq rules requiring shareholder approval of below-market issuances. Notwithstanding this, the Nasdaq Staff determined that Bluefly, Inc. had regained compliance with such rule by amending the warrants to increase the exercise price. Accordingly, Bluefly believes that it has now resolved all outstanding issues regarding Nasdaq listing requirements.

About Bluefly, Inc.

Founded in 1998, Bluefly, Inc. (NASDAQ Capital Market: BFLY) is a leading online retailer of designer brands, fashion trends and superior value. Bluefly is headquartered at 42 West 39th Street in New York City, in the heart of the Fashion District. For more information, please call 212-944-8000 or visit www.bluefly.com.