Blue Fish Clothing Reports Retail Sales Upward Trend and Postpones Corporate Move.

FRENCHTOWN, N.J.--(BUSINESS WIRE)--July 10, 1998--Blue Fish Clothing announced an upward sales trend in its five retail stores over the second quarter of 1998.

"This upward trend reflects positively on the guidance of our new executive management team," states acting CEO Jeff Haims. "With special sales and immediate attention to vintage inventory, we have seen a same store sales increase of approximately 4% compared to the same period last year. Additionally, we have been restructuring for growth. This includes a series of cost reductions through this period that are likely to make an impact in the second half of 1998. I'm pleased with our ability to address immediate issues, and give the company the tools and ability to conduct its business."

"As a result," says Haims, "it has been necessary for us to take a look at the feasibility of a corporate move. Given its financial and business demands, Blue Fish Clothing has decided to postpone its planned corporate move to Palmer Township, Pa."

"It is clear that at this time we are not able to take on the kinds of total commitments needed to initiate this change. The disruption to our business processes, as well as the timing of the scheduled payments, make the plan to remain in Frenchtown at this time a positive decision for Blue Fish and its shareholders."

"Of course, we still support and feel part of the Easton community," says Haims, "and we will continue to augment commerce in the area, both through our sales and through our support of community life and projects. Our Second Annual Tent Sale in Easton will take place this weekend at the Palmer Township buildings, July 10, 11 and 12."

As part of the company's community awareness, a portion of the proceeds from this Easton sale will benefit Easton Area High School graduating seniors who will be studying art in their first year of college as well as benefit the Lehigh Valley Charter High School of the Performing Arts.

Jennifer Barclay, Blue Fish Founder and Chairman of the Board of Directors, adds, "We are disappointed that we are not able to complete this move right now. Blue Fish plans to remain active in support of the many great things that are happening in the Easton area."

"In addition to our donations in support of art students, we have donated our donation of 300 specially designed custom Blue Fish t-shirts, which will be the official t-shirt for the Third Street Alliance fundraiser, the "Splash for Cash" taking place in August. In the fall, we're hosting a styleshow on behalf of the Weller Center, and we will continue to look for ways to reach out to the Easton community," says Ms. Barclay.

Blue Fish owns and operates five retail stores: Westport, CT; Frenchtown, NJ; Santa Fe, NM; Austin, TX; New York, NY. The clothing is sold nationally in boutiques and specialty apparel stores including Neiman Marcus and Nordstrom. Blue Fish is a public company and is traded exclusively on the Chicago Stock Exchange (symbol BLF).

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act 

With the exception of the historical information contained in this release, the matters described herein contain forward-looking statements that involve risk and uncertainties, including but not limited to, statements relating to results of litigation, that may individually or mutually impact the matters herein, and cause actual results, events and performance to differ materially. These risk factors include, but are not limited to, uncertain future sales growth and operating results, competition, seasonality, dependence on founder and executive officers, reliance on and possible limited appeal of the "Blue Fish Concept," sensitivity of apparel design, significant wholesale customers and future capital needs. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date hereof. The company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

CONTACT: Blue Fish Clothing

Ta Kimble

P: 908/996-3225 ext. 248

F: 908/996-3828