Big Dog Holdings Inc. Completes First Phase of Internet Enterprise With Entire Catalog Available Online; Largest Branded Online Store for Big Sizes.

SANTA BARBARA, Calif.--(BUSINESS WIRE)--June 10, 1999--

Big Dog Holdings Inc. (NASDAQ:BDOG) (www.bigdogs.com), a developer, marketer and retailer of branded, lifestyle consumer products, Thursday announced that the first phase of its Internet Enterprise, a complete, online Big Dog store, has become operational.

The company's e-commerce business is housed at its Web site, www.bigdogs.com, and currently offers the entire Big Dog Summer Catalog of several thousand s.k.u.'s and 600 new products. While the company's online store offers Big Dog's wide range of apparel and accessories, its big-size collection, Big Big Dogs, makes it the largest branded online apparel destination for large people (sizes 1X-5X).

Sales of the company's big-size apparel have been growing rapidly for several years. Big Dog plans to leverage its expanding popularity and franchise with this important and underserved population in subsequent phases of Big Dog's Internet Enterprise.

The launch of the company's robust e-commerce vehicle is being supported by a complementary Web site marketing compaign. The Web site address and online store will be promoted in the company's 177 retail stores, its mail order catalog and its collateral materials, which number in the tens of millions of pieces per year. Additional Web site marketing and advertising is being planned.

As announced earlier, Big Dog's Internet Enterprise will be rolled out in phases throughout the remainder of 1999 and into 2000. In a joint venture with Guidance Solutions, the company will be creating virtual communities and leading Internet destinations for two of its customer franchises: large people and pet owners.

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.

Andrew Feshbach, chief executive officer, Big Dog Holdings, commented: "This is an important first step in the development of our exciting Internet opportunity. The work on phase two is underway and is scheduled to be completed later this year."

Big Dog Holdings 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 leveraging its brand equity through selective licensing, cross promotions and the building of an Internet Enterprise for its market.

In addition to its 177 retail stores, BIG DOGS markets its products through its catalog, better wholesale accounts and online.

Safe Harbor Statement Under the Private Securities Litigation Act 1995 -- With the exception of historical information, the matters discussed in this news 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 subsequent phases of the Internet site 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.