Strategic Alliance: Bluefly.com and Lycos Form Strategic Alliance - Company Business and Marketing

Edge: Work-Group Computing Report, Nov 23, 1998

Bluefly, Inc. (Nasdaq SmallCap: BFLY, BFLYW/BSE: BFL, BFLW), "The Outlet Store In Your Home," and Lycos, Inc., (Nasdaq: LCOS), the second most visited Internet hub, announced Thursday that they have formed a strategic alliance, which will establish Bluefly as a premier commerce vendor of Lycos. Bluefly is a leading online designer outlet store that sells name brand apparel at significant discounts to retail prices. Under the terms of the deal, Bluefly will be accessible throughout the Lycos Network on Lycos.com, Tripod and MailCity sites through a combination of advertising, commerce and promotional programs which are set to begin before the Thanksgiving Day holiday.

"This is a very significant agreement for us," said Ken Seiff, Chief Executive Officer of Bluefly, Inc. "With over 40 percent reach, the Lycos Network provides access to a diverse and fast-growing audience. We are extremely proud to be one of Lycos' premier commerce vendors, and regard this 14 month strategic alliance, which should span the 1998 and 1999 holiday seasons, as a crucial step toward achieving our goal of becoming the place to shop online for name brand and designer apparel at discounted prices," Seiff added.

This online commerce and advertising deal includes links to Bluefly from Lycos.com, Tripod and MailCity as well as banner advertising, links from over 100 keywords and many other promotional and joint marketing components.

Bluefly is a premier Lycos vendor in one of the fastest growing e-commerce categories--apparel. "Bluefly is one of the best places online to buy designer and name brand apparel at a discount," said Bob Davis, President and CEO of Lycos, Inc. "We are excited to offer their compelling values and great products to the millions of shopping visitors across the Lycos Network." Davis added, "This alliance represents an early validation of the value that the Lycos Network provides to our business partners."

Founded in 1995, Lycos, Inc. (Nasdaq:LCOS) owns the Lycos Network, the second most visited hub on the Internet, combining all aspects of community, leading Web navigation resources and cutting-edge business and consumer e-commerce solutions. The Lycos Network, a unified set of properties that delivers mass reach and diversity of audience and programming, is composed of best-of-breed services: Lycos.com, Tripod, WhoWhere, Angelfire, MailCity, Guestworld, Hotbot, HotWired, Wired News, Webmonkey and Suck.com. Located at http://www.lycos.com, Lycos.com -- "Your Personal Internet Guide" -- is dedicated to helping each individual user locate, retrieve and manage information tailored to his or her personal interests. Headquartered near Boston in Waltham, Mass., Lycos, Inc. maintains offices in New York City, Pittsburgh, Dallas, Chicago, Los Angeles, San Francisco, Mountain View, Calif. and Williamstown, Mass. International offices are located in Germany, Italy, France, Japan, the UK, Spain and The Netherlands.

Headquartered in New York City, in the heart of the fashion district, Bluefly.com aims to be the most enjoyable way to shop for designer and name brand apparel and accessories at savings of 25 to 75 percent off of retail prices. Its innovative MyCatalog feature, one of the most sophisticated apparel search engines on the Internet, eliminates the "hit-or-miss" aspect of off-price shopping. The online merchant offers a meaningful alternative for consumers looking for savings, convenience, selection and customer-friendly service. The Web site provides an innovative shopping experience with interactive content, including fashion tips, trends and advice.