Big Dog Holdings, Inc. Partners With Guidance Solutions, Inc. to Build Brand-Driven Internet Enterprise for Spin-off.

SANTA BARBARA, Calif.--(BUSINESS WIRE)--April 29, 1999--

To Create a Powerful Virtual Community for Millions of Big Dog

Customers, Brand Enthusiasts and the $100 Billion+ Industries

That Serve Their Special Interests

Big Dog Holdings, Inc. (Nasdaq:BDOG) (www.bigdogs.com), a developer, marketer and retailer of branded, lifestyle consumer products, today continued to unveil its 1999-2000 Brand Equity Expansion Plan, with the announcement of an agreement with online venture developer, Guidance Solutions, Inc. (www.guidance.com) to build and co-manage a powerful, brand-driven Internet Enterprise for the millions of Big Dog customers and the more than $100 billion industries that serve their special interests.

The Internet Enterprise that will evolve from this joint venture is expected to reflect the synergies created by the marriage of Big Dog's significant and unique customer base and brand awareness with Guidance Solutions' recognized ability to leverage traditional brand affinities and build and launch successful online businesses.

The Internet Enterprise will include a major expansion of the Big Dog Website (www.BIGDOGS.com) into a robust e-commerce vehicle for the Company's merchandise, and virtual communities for two of Big Dog's expanding customer franchises: pet owners and large-size people. Eighty percent of Big Dog's millions of customers are pet, mostly dog, owners and enthusiasts. Big Dogs has developed a substantial and very dedicated following in big-size apparel, mostly as a result of the positive image conveyed from "Being a Big Dog." Big Dogs is among only a few recognized brands in the underserved big-sized market. Both of these unique special interest populations are underserved on the Internet, and lack a dedicated, comprehensive connection to the myriad of industries that serve them. Annual spending on related products and services by these populations is estimated at over $100 billion per year. The joint venture with Guidance Solutions will produce a compelling collection of related virtual communities designed to serve as the leading Internet destination for these markets and their vendors. Big Dogs will have a distinct competitive advantage over other virtual enterprises in terms of drawing millions of its customers to this site as a result of its enormous existing customer base. This Internet Enterprise is preliminarily slated for spin-off to the public or private markets.

As a venture developer, Guidance Solutions leverages its core technical capabilities, creative innovation and strategic planning experience to partner with established businesses to successfully launch retail and entertainment focused Internet ventures. Guidance Solutions has a proven track record in launching online businesses for such clients as Foot Locker, Champs Sports, Eastbay, E-Nutrition, Celebrity Sightings, StreetZebra and Bandai Entertainment, among others.

Big Dogs 1999-2000 Brand Equity Expansion Plan was written with the objective of building shareholder value by leveraging the Company's large customer base and the market power of the Big Dog brand and character. The Internet Enterprise is fundamental to the Plan and is expected to be the most profound expression of the value of Big Dog's brand awareness, customer base, customer affinities and grassroots marketing efforts. In effect, the Big Dog name and its associations with pets, size, fun and family are expected to attract tens of millions of people to its Website. Based on the initial reaction to www.BIGDOGS.com, the Company partnered with Guidance Solutions to create an exciting e-commerce destination. This e-commerce project is scheduled to be fully launched by the 1999 Holiday season. In a complementary push strategy, Big Dogs will be building Website awareness through its store traffic, catalog and collateral materials, which number in the tens of millions of pieces per year. An initial phase enhancement of www.BIGDOGS.com is expected to be completed by the end of May 1999, at which time the entire Big Dog catalog will be available online.

The development of the virtual communities for pet owners and large-sized people will commence in tandem with the e-commerce effort. Big Dogs will begin shortly to develop relationships with companies and agencies serving these related industries, for the purpose of implementing cross-promotional campaigns and sales tie-ins. These industries include pet food, supplies and services as well as a wide range of goods and services for the big-sized people market. Together these industries represent over $100 billion in sales to these markets.

"Our partnership with Big Dog is another example of how Guidance Solutions and a traditionalist team together to broaden the distribution base of consumer brands. We are very excited to expand the Big Dog brand globally via the Internet," said Robert Landes, chief executive officer of Guidance Solutions.

In commenting on this venture, Andrew Feshbach, chief executive officer, Big Dog Holdings, said, "We are truly fortunate to have been able to partner with Guidance Solutions, whose online businesses have certainly been considered among the best in the market. Guidance seems to be particularly talented in combining its virtual business capabilities with strong brands and their customers, which is a perfect match with our key assets. We believe that Big Dogs has the unique drawing power to bring millions upon millions of people into its virtual community, and Guidance Solutions has the know-how and creative talent to convert these visits into profitable sales. We are moving forward in a strong, synergistic partnership, with the objective of building a leading independent Internet company, whose value will accrue to our investors and partners."

Guidance Solutions is a leading venture developer headquartered in Marina del Rey, CA. Founded in 1993, the profitable privately owned company strategically develops and launches online businesses and has more than 80 employees.

Big Dog Holdings, Inc. develops, markets and retails a branded, lifestyle collection of unique, high-quality, popular-priced consumer products, including activewear, casual sportswear, accessories and gifts. The Big Dog brand image is one of quality, fun and a sense of humor. BIG DOGS brand is designed to appeal to people of all ages and demographics, particularly baby boomers and their kids, big and tall customers, and pet owners. The Company is in the process of extending its brand equity through selective licensing, cross promotions and the building of an Internet enterprise for its market. In addition to its 175 retail stores, Big Dogs markets its products through its catalog, better wholesale accounts and Internet sales.

Safe Harbor Statement Under the Private Securities Litigation Act 1995- With the exception of historical information, the matters discussed in this press release are forward looking statements that involve a number of risks and uncertainties. The actual future results of the Company could differ significantly from those statements. Factors that could cause or contribute to such differences include, but are not limited to, the ability to successfully develop the Internet sites and launch and operate them in a cost-efficient and timely fashion, competition from other sites, the ability to attract substantial advertisers and customers, and the ability to attract private or public financing for an eventual spin-off. Further information on the Company's risk factors is contained in the Company's quarterly and annual reports as filed with the Securities and Exchange Commission.