Bluefly Announces Management Changes

Bluefly, Inc. (NASDAQ Capital Market: BFLY), a leading online retailer of designer brands, fashion trends and superior value, today announced that Joseph C. Park, previously Chief Operating Officer, has been promoted to Chief Executive Officer, effective immediately, replacing Melissa Payner, who resigned as Chief Executive Officer and a member of the Company’s Board of Directors. Mr. Park is also replacing Ms. Payner on the Board of Directors. Mr. Park joined Bluefly as Chief Operating Officer in June 2011 after founding and leading several successful Internet businesses during the past fourteen years.

David Wassong, Chairman of the Board, commented, “The promotion of Joseph to Chief Executive Officer recognizes his strong leadership skills and business acumen, as well as his exceptional contributions since joining Bluefly as Chief Operating Officer last year. I want to thank Melissa for her significant contributions since joining the Company as President in 2003. Melissa transformed Bluefly into a site for sought after luxury brands at tremendous value, serving more than 20 million unique visitors each year. While we are sad to see Melissa leave, the Board is highly confident in Joseph and in Bluefly’s future under his direction.”

Joseph C. Park, Chief Executive Officer of Bluefly, commented, “I am excited to take the helm as Chief Executive Officer of Bluefly. We have a highly recognizable brand, a loyal customer base and strong vendor relationships, and we are just beginning a new phase of expansion with the recent launch of Belle & Clive ( www.belleandclive.com). I look forward to working with the Board and the entire Bluefly team to take the Company to a higher level of growth.”

Melissa Payner stated: “I have been privileged to lead Bluefly over the past eight years and want to thank our employees and our vendor partners for their support and dedication. I am proud of the brand we have created and I am excited about Bluefly’s future.”

Mr. Park joined Bluefly in June 2011 as Chief Operating Officer following a diverse and successful career in the Internet industry. Most recently, Mr. Park was SVP of Consumer Digital Products at HarperCollins where he co-founded Bookperk.com, a group buying e-commerce website for avid book readers and spearheaded their overall consumer digital and monetization strategy. Mr. Park came to HarperCollins through its’ acquisition of BibleGateway, the largest biblical reference website where he was hired as President.

Earlier in his career, Mr. Park co-founded and was the CEO of Kozmo.com, the first Internet retailer to provide same-day, one hour delivery service to consumers. This was followed by work at Microsoft, in their Corporate Strategy Group, after which he joined Amazon.com in 2005 where he co-founded and launched Askville.com, one of the leading social Q&A communities on the web. While at Amazon, he incubated new businesses/startups within the organization, developed the business plan and initial product road map that launched Amazon's Product Ads business and grew Askville into one of the leading social Q&A websites on the web. Mr. Park also co-authored nine different technology patents. In addition, Mr. Park spent 3 years at Goldman Sachs in Investment Banking and Equity Research. Mr. Park earned his Bachelor of Arts degree in economics, journalism, and political science from New York University and received his M.B.A. from Harvard Business School.

About Bluefly, Inc.

Founded in 1998, Bluefly, Inc. (NASDAQ Capital Market: BFLY) is a leading online retailer of designer brands, fashion trends, and superior value. Bluefly is headquartered at 42 West 39th Street in New York City, in the heart of Manhattan’s Fashion District. In 2011, Bluefly expanded its portfolio, launching Belle & Clive, a Members-only shopping destination that presents highly-curated selections of important brands via limited-time sale events; and Eyefly, an online portal for fashionable prescription eyeglasses starting at $99. For more information, please dial 212-944-8000, or 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-K, 10-Q and 10-K. These risks and uncertainties include, but are not limited to, the following: the Company’s history of losses and anticipated future losses; the Company’s ability to realize benefits from its increased marketing expenses; risks associated with the economic downturn; risks associated with affiliates of Rho Ventures, LP, affiliates of Soros Fund Management, private funds associated with Maverick Capital Ltd. and affiliates of Prentice Capital Management, LP each owning a significant portion of our stock; the potential failure to forecast revenues and/or to make adjustments to our operating plans necessary as a result of any failure to forecast accurately; unexpected changes in fashion trends; cyclical variations in the apparel and e-commerce markets; risks associated with our dependence on one supplier for a material portion of our inventory; the risk of default by us under our credit facility and the consequences that might arise from us having granted a lien on substantially all of our assets under that agreement; risks of litigation related to the sale of unauthentic or damaged goods and litigation risks related to sales in foreign countries; our potential exposure to product liability claims in the event that products sold by us are defective; the dependence on third parties and certain relationships for certain services, including our dependence on UPS and USPS (and the risks of a mail slowdown due to terrorist activity) and our dependence on our third-party web hosting, fulfillment and customer service centers; online commerce security risks; our ability to raise additional capital, if needed, to support the growth of our business; risks related to brand owners’ efforts to limit our ability to purchase products indirectly; management of potential growth; the competitive nature of our business and the potential for competitors with greater resources to enter the business; the availability of merchandise; the need to further establish brand name recognition; risks associated with our ability to handle increased traffic and/or continued improvements to our Web Site; rising return rates; dependence upon executive personnel who do not have long-term employment agreements; the successful hiring and retaining of new personnel; risks associated with expanding our operations; risks associated with potential infringement of other’s intellectual property; the potential inability to protect our intellectual property; government regulation and legal uncertainties; uncertainties relating to the imposition of sales tax on Internet sales; our ability to utilize our net operating losses; and the effectiveness of our internal controls.

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