Bluefly Wins Best Practice Award From American Express and NRF Foundation.

Business Editors

NEW YORK--(BUSINESS WIRE)--Jan. 18, 2000

Trailblazing Online Retailer Recognized as First

Off-Price Retailer to Build a Lifestyle Brand

American Express and The NRF Foundation, the research and education arm of the National Retail Federation, announced today that Bluefly, Inc. (NASDAQ SmallCap: BFLY), a leading Internet retailer of designer fashions and home furnishings at outlet store prices (www.bluefly.com), has been named a best practice champion for its revolutionary branding efforts.

Unlike traditional off-price retailers, Bluefly's strategy has been to build a hip and stylish image that attracts a more fashion-conscious customer and provides designers with a superior distribution channel for their end-of-season and excess merchandise. "Branding is a part of everything we do, from our advertising campaigns and Web site design, to our merchandising strategy, to the message on our voicemail system," said Ken Seiff, Chief Executive Officer of Bluefly.com. "By focusing on creating a lifestyle brand and emphasizing our fashionable image rather than our discounted prices, we intend to create a fundamentally better market for off-price apparel for the benefit of both customers and designers, and building the type of brand loyalty that should serve as a significant barrier to entry," added Seiff.

Bluefly is a NASDAQ SmallCap public company headquartered in New York City, in the heart of the fashion district. Distinguishing itself with discounts of up to 75%, products from over 300 designers and a 90 day money back guarantee, Bluefly.com aims to be the world's first full service outlet store for designer fashions. Its innovative MyCatalog feature is designed to eliminate the "hit-or-miss" aspect of off-price shopping by allowing shoppers to see only those products that are available for sale and match their interests. The online merchant has established strategic alliances with many of the most visited Web Sites and portals including AOL, Excite, Go Network, Lycos, MSN, Netcenter, Tripod, Women.com and Yahoo!. For more information, visit www.bluefly.com.

This press release may include statements that constitute "forward-looking" statements, usually containing the words "believe," "project," "expect," or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. The risks and uncertainties are detailed from time to time in reports filed by the company with the Securities and Exchange Commission, including Forms 8-A, 8-K, 10-QSB, and 10-KSB. These risks and uncertainties include, but are not limited to, the following: the competitive nature of the business and the potential for competitors with greater resources to enter such business; risks of litigation for sale of unauthentic or damaged goods and litigation risks related to sales in foreign countries; consumer acceptance of the Internet as a medium for purchasing apparel; the Company's limited working capital and need for additional financing; recent losses and anticipated future losses; the startup nature of the Internet business; the capital intensive nature of such business (taking into account the need for advertising to promote such business); the dependence on third parties and certain relationships for certain services; the successful hiring and retaining of personnel; the dependence on continued growth of online commerce; rapid technological change; year 2000 issues; online commerce security risks; governmental regulation and legal uncertainties; management of potential growth; and unexpected changes in fashion trends.