Andrew Russell Appointed to Bluefly Board of Directors

NEW YORK--()--Bluefly, Inc. (NASDAQ Capital Market: BFLY), a leading online retailer of designer brands, fashion trends and superior value (www.bluefly.com), today announced that Andrew Russell has been elected to serve as an independent member of the Company’s Board of Directors, effective April 7, 2011.

Andrew Russell is a Partner at the Pilot Group, a middle market private equity firm specializing in broadcasting consumer products, services and digital media. Prior to joining Pilot Group at its inception in 2003, Andy was a Partner at East River Ventures, an early stage venture capital firm in New York, where he focused on digital media. He began his professional career as an Associate with Chemical Securities where he coordinated debt financing for transactions in syndicated bank loan and high yield debt markets. As an entrepreneur at Epinard LLC in New York, he was responsible for conceiving and launching a company to develop and operate upscale hospitality ventures nationwide. His first flagship restaurant with Epinard was Moomba and was referred to by New York Magazine as “The Hottest Spot in New York.” He was a Merit Scholar at Cornell University where he received a Bachelor of Arts in Business and Psychology. He also received a Masters of Business Administration in Finance and Entrepreneurial Management from Columbia University Business School.

Melissa Payner, Chief Executive Officer of Bluefly, commented: “I am pleased to welcome Andy to our Board. His expertise developing and guiding companies in the fast-paced digital media realm and his entrepreneurial spirit are a good fit and complement to our existing Board composition. We expect Andy to make significant contributions to our Company as we continue to focus on further differentiating our unique online platform to drive profitable market share.”

Andrew Russell, Partner at the Pilot Group, commented: “I am delighted to join the Board of Bluefly and work with the management team and the Board as we seek to achieve the Company’s strategic objectives and capitalize on the significant growth opportunities we see ahead for Bluefly.”

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.

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 and our ability to utilize our net operating losses.

Contacts

Investor/Press Contact:
ICR, Inc.
Investors:
Allison Malkin / Anne Rakunas
203-682-8225 / 310-954-1113
or
Press:
Alecia Pulman, 203-682-8224

Contacts

Investor/Press Contact:
ICR, Inc.
Investors:
Allison Malkin / Anne Rakunas
203-682-8225 / 310-954-1113
or
Press:
Alecia Pulman, 203-682-8224