Blue Nile Launches Exclusive 'Signature Collection' Diamonds For The Holidays; Signature Collection Includes World's First and Only Ideal Cut Princess Diamond.

Business Editors

SEATTLE--(BUSINESS WIRE)--Oct. 30, 2001

Blue Nile, Inc., the leading online retailer of diamonds and fine jewelry, announced today the launch of the Blue Nile Signature Collection. The exclusive collection includes the world's highest quality round and princess shape diamonds cut to the most exacting standards.

"We've designed the Signature Collection to enable consumers to easily find the 'best of the best' in diamonds at a great value," said Blue Nile CEO Mark Vadon.

Among the top one percent of diamonds in the world, the Signature Collection includes the world's first and only ideal cut princess diamonds, as well as round cut diamonds which exceed even the high standards of the AGS ideal cut round.

"A diamond's cut is its most important characteristic, because it has the biggest effect on the diamond's overall brilliance," said Blue Nile Director of Merchandising Robin Codner. "Our Signature Collection diamonds are hand selected and cut to the most exacting standards, guaranteeing maximum brilliance, sparkle, and fire."

The Blue Nile Signature Collection contains both round and princess cut diamonds in D-I colors, IF-SI1 Clarity grades, and 0.5-2.5 carat sizes. Prices for the signature collection start at $1,500.

Since its November 1999 launch, Blue Nile has sold more than 10,000 diamonds. The company now controls a one percent dollar market share of the U.S. engagement ring market, and is the No. 2 seller of ideal cut diamonds behind Tiffany's.

Blue Nile was profitable on a monthly basis for the month of August 2001. The company expects to be operationally profitable during the current quarter (Q4, 2001), and will remain profitable for every quarter moving forward.

About Blue Nile

Blue Nile, the online leader in the diamond and fine jewelry category, located on the Web at www.bluenile.com, offers consumers a better way to buy diamonds and fine jewelry. Twice named Forbes Favorite online jeweler, the publication's top honor of the best Internet sites, Blue Nile provides an exceptional collection of classically styled jewelry selected according to high standards of quality, beauty and value. Cleanly designed and easy to navigate, the site offers the in-depth education necessary to make informed purchases with confidence. All Blue Nile jewelry is delivered free of charge, guaranteed and returnable within 30 days and transactions are covered through SSL technology - which ensures an online purchase experience that's risk-free. Based in Seattle, Blue Nile is privately held with investments from Bessemer Venture Partners; Trinity Ventures; Kleiner Perkins Caufield & Byers; Lightspeed Venture Partners (formerly Weiss, Peck and Greer Venture Partners); Integral Capital Partners; Vulcan Ventures Inc.; and Comdisco Ventures. The company can be reached by phone at 800/242-2728.

SOURCE: Blue Nile