Alloy to Seek Stockholder Approval for Reverse Stock Split; Reverse Split Contingent on Spinoff of dELiA*s, Inc.

NEW YORK -- Alloy, Inc. (Nasdaq: ALOY), a media, marketing services, direct marketing and retail company primarily targeting the Generation Y population, today announced that its board of directors has authorized the Company to seek stockholder approval for a reverse stock split. The reverse split is contingent on the spinoff of Alloy's dELiA*s, Inc. merchandising and retail business. While the board currently contemplates effecting a reverse split at a one for four ratio, i.e., every four shares of Alloy, Inc. common stock will be combined into one share of Alloy, Inc. common stock, stockholder approval is being sought to effect a reverse stock split at a one for two, one for three or one for four ratio, giving the board the flexibility to determine the ultimate split ratio that is in the best interests of the Company and its stockholders. Alloy does not intend to issue any fractional shares in connection with the reverse stock split and stockholders holding fractional shares will be entitled to a cash payment equal to the fraction to which such stockholders would otherwise be entitled multiplied by the closing price of the Alloy, Inc. common stock on the last trading day before the reverse split effective date.

Assuming stockholder approval for the reverse stock split is obtained, it is currently anticipated that the reverse stock split would be implemented shortly after the dELiA*s, Inc. spinoff is completed. However, even in the event that stockholder approval of the reverse stock split is obtained and the Alloy board authorizes effecting the spinoff, the reverse split will be implemented only at such time the board determines in its discretion that such reverse split is in the best interests of Alloy and its stockholders.

The intended primary purposes of the reverse stock split are to counteract any decrease in our stock price resulting from the spinoff and to increase our common stock price to a level more appealing for investors. The reverse stock split will not affect the number of Alloy, Inc.'s authorized common or preferred shares.

About Alloy, Inc.

Alloy, Inc. is a media, marketing services, direct marketing and retail company primarily targeting Generation Y, a key demographic segment comprising the more than 60 million boys and girls in the United States between the ages of 10 and 24. Through Alloy Media + Marketing, Alloy, Inc.'s media and marketing services unit, marketers can connect with the Generation Y audience through a host of advertising and marketing programs incorporating Alloy, Inc.'s media and marketing assets such as direct mail catalogs, college and high school newspaper representation relationships, websites, school-based media boards, college guides, and sponsored on- and off-campus events. For further information regarding Alloy, Inc. please visit our website (www.alloyinc.com) and click on "Investor Relations".

About dELiA*s, Inc.

dELiA*s, Inc. is a direct marketing and retail company comprised of three lifestyle brands primarily targeting consumers between the ages of 12 and 19, a demographic that is among the fastest growing in the United States. Its brands - dELiA*s, Alloy and CCS - were formerly part of Alloy, Inc.'s Alloy Merchandising Group and are well-established, differentiated lifestyle brands that generate revenue by selling apparel, accessories, footwear, room furnishings and action sports equipment predominantly to teenage consumers through direct mail catalogs, websites and, for dELiA*s, mall-based specialty retail stores.

Note to Stockholders

This information is not a substitute for the proxy statement that Alloy will file with the Securities and Exchange Commission (SEC) with respect to the special meeting to authorize the reverse stock split. Investors are urged to read that document when it becomes available because it will contain important information. The proxy statement and other documents filed by Alloy with the SEC will be available free of charge at the SEC's website (www.sec.gov) and from Alloy at its corporate website (www.alloyinc.com).

Alloy, Inc., its directors and certain of its executive officers may be considered participants in the solicitation of proxies in connection with the reverse stock split. Information concerning Alloy's directors and executive officers can be found in the documents filed by Alloy with the SEC. All holders of Alloy common stock, including directors and executive officers of the Company, will receive equal treatment in the reverse stock split. Additional information regarding the participants in the solicitation will be contained in the proxy statement.

This document includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on our current beliefs and expectations about the reverse stock split. The proposed reverse stock split is subject to a number of uncertainties, conditions and approvals, including, without limitation, the above described stockholder approval of such action, and the completion of the proposed spinoff of dELiA*s, Inc. There can be no assurance that the reverse stock split will be completed as described, or if it is completed, that it will have the intended effects.