Blue Holdings Inc. Enters into Distribution Agreement for Yanuk Products in Japan.

COMMERCE, Calif. -- Blue Holdings Inc. (OTCBB: BLHL), a designer, manufacturer and distributor of high-end fashion jeans and denim apparel, today announced that it has entered into a distribution agreement in Japan for products under the Yanuk trademark, effective September 1, 2005, with Caitac International, Inc. ("Caitac"). Under the terms of the distribution agreement, Caitac will be the exclusive distributor of Blue Holdings' clothing apparel, including jeans and related products, bearing the "Yanuk" trademark in Japan and all of its territories and possessions, including, Okinawa. Minimum net sales requirements as agreed upon by Caitac and the Company are $12,000,000 from September 1, 2005, through April 30, 2007. The agreement will be automatically renewed for an additional three years after April 2007, with minimum net sales requirements to be agreed upon.

Caitac is one of the largest manufacturers of pajamas in Japan and is a major distributor of denim products for many international brands in the country.

Blue Holdings is the exclusive licensor for the design, development, manufacture, sale, marketing and distribution of Yanuk Jeans, LLC products bearing the "Yanuk" trademark.

"We are very excited to be entering into this agreement with Caitac. This marks an important step in expanding our distribution network in East Asia," said Paul Guez, Chairman, Chief Executive Officer and President of Blue Holdings Inc.

About Blue Holdings Inc.

Blue Holdings Inc., directly and through its wholly owned subsidiary, Antik Denim, LLC, designs, develops, manufactures, markets, distributes and sells high-end fashion jeans, apparel, and accessories with a western flair under the "Antik Denim" and "Yanuk" brands, both in the United States and internationally. Blue Holdings currently sells men's and women's styles and is in the process of launching a children's line. Antik Denim and Yanuk jeans are made from high-quality fabrics milled in the United States, Japan, Italy and Spain, and are processed with cutting-edge treatments and finishes. Its 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. 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.