Bluefly and A + D Labs Announce Launch of Online Fashion Eyewear Company

New Online Boutique “Eyefly” to Offer On-Trend Frames and Prescription Lenses for $99

NEW YORK--()--Bluefly, Inc.(NASDAQ Capital Market: BFLY), a leading online retailer of designer fashion and accessories, and A + D Labs, a premier designer and manufacturer of fashion eyewear, announced today plans to launch Eyefly, a new online eyewear company to be owned 52% by Bluefly and 48% by A + D Labs, in Spring 2011. Eyefly is a unique concept in fashion eyewear offering consumers on-trend frames and prescription lenses for a fraction of the price of eyewear boutiques, in an engaging and interactive online shopping experience.

“We are so excited to be joining with A + D Labs, to introduce Eyefly this Spring. Our goal is to create a site that treats eyewear like any other fashion accessory. The message to our customer is simple and strong: you have multiple handbags and dozens of shoes--- why limit yourself to a single pair of glasses?” said Melissa Payner, CEO at Bluefly. “Alessandro Lanaro of A + D Labs brings 20 years of experience to this partnership and we’re thrilled to be able to leverage his expertise to deliver designer eyewear at such a competitive price point.”

Eyefly will feature men’s and women’s frames and lenses for just $99 as well as a limited assortment of sunglasses and readers. A virtual try-on feature will enable consumers to upload their photos, and then “try on frames” to see how they look in each pair. Shoppers can then share these photos with friends via Facebook and email to get opinions, comments and feedback to help in their decision making, adding engagement and a fun social component to the Eyefly site.

“We are thrilled to be working with the talented team at Bluefly to launch the Eyefly boutique,” said Alessandro Lanaro. “As leaders in online fashion, Bluefly has developed one of the most dynamic and social shopping experiences on the web, and we know that Eyefly will follow the same pattern. We believe that the availability of fashionable frames and the fun online experience of Eyefly will really appeal to today’s consumers, and encourage them to see eyewear as an important accessory in their wardrobe.”

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 the Fashion District. For more information, please call 212-944-8000 or visit www.bluefly.com

About A + D Labs

A + D Labs is a designer and manufacturer of premier fashion eyewear owned by Alessandro Lanaro who boasts over 20 years in the eyewear business.

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.

Contacts

ICR, Inc.
Investors:
Allison Malkin/Jane Thorn Leeson
203-682-8225/646-277-1223
or
Press:
Sari Martin, 203-682-8345

Contacts

ICR, Inc.
Investors:
Allison Malkin/Jane Thorn Leeson
203-682-8225/646-277-1223
or
Press:
Sari Martin, 203-682-8345