Blue Holdings, Inc. Announces Shareholder Approval of the Letter of Intent, the Contemplated Definitive Agreements and the Issuance of All Contemplated Shares to will.i.am, and all Other Items at Annual Meeting.

COMMERCE, Calif. -- Blue Holdings, Inc. (NASDAQ:BLUE), today announced that the Company received formal shareholder approval of the letter of intent, the contemplated definitive agreements and the issuance of all contemplated shares to William Adams, aka will.i.am of the Black Eyed Peas at its annual shareholder meeting on Thursday, June 21, 2007.

The Company previously announced, it had entered into a letter of intent with Mr. William Adams which contemplated a co-branding agreement for the creation of a collection of premium denim and denim-related apparel under the name "I.Am Antik," and a joint venture agreement pursuant to which the parties will design, develop, market, manufacture and distribute apparel products bearing the "I.Am" trademark. The letter of intent also contemplated a consulting arrangement with Mr. Adams with respect to design, marketing and promotional services. As consideration for these services, the Company issued 175,000 shares of common stock to Mr. Adams, with an additional 81,250 shares of common stock to be issued on each one year anniversary for 4 years. Additionally, Mr. Adams may receive additional shares of the Company's common stock upon achieving certain milestones based on net sales.

"These agreements and their associated approvals represent another step forward for Blue Holdings," commented Paul Guez, Chairman and Chief Executive Office. "We continue to be excited about the many opportunities we see ahead."

The company's shareholders also elected management's slate of directors to its board and ratified the appointment of Weinberg & Company, P.A. as the company's registered independent accounting firm.

About Blue Holdings, Inc.

Blue Holdings, Inc., directly and through its wholly owned subsidiaries, Antik Denim, LLC and Taverniti So Jeans, LLC, designs, develops, manufactures, markets, distributes and sells high-end fashion jeans, apparel, and accessories under the "Antik Denim," "Yanuk," "Taverniti So Jeans," and "Faith" brands, and under its joint venture "Life and Death" brand, both in the United States and internationally. Blue Holdings currently sells men's, women's and children's styles. Antik Denim, Yanuk, Taverniti So, Life and Death and Faith jeans and apparel are made from high-quality fabrics milled in the United States, Japan, Italy and Spain, and are processed with cutting-edge treatments and finishes. Blue Holdings' concepts, designs, embellishments, patent-pending pockets and great attention to detail and quality give it a competitive advantage in the high-end fashion jeans market.

Forward-Looking Statements

Except for historical information contained herein, the statements in this release are forward looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently unreliable and actual results may differ materially. Examples of forward-looking statements included in this release include statements related to future opportunities for Blue Holdings. Factors which could cause actual results to differ materially from these forward-looking statements include such factors as may be detailed from time to time in Blue Holdings' filings with the United States Securities and Exchange Commission. Blue Holdings undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.