Exhibit 99.1

FOR IMMEDIATE RELEASE

                                    INVESTOR CONTACT:       MEDIA CONTACT:
                                    Patrick Barry           Curtis Hougland
                                    CFO, Bluefly, Inc.      RLM Public Relations
                                    212- 944-8000 (x239)    212-741-5106 x220
                                    pat@bluefly.com         curtis@RLMpr.com

 BLUEFLY SECURES NEW REVOLVING CREDIT FACILITY OF $7.5 MILLION FROM WELLS FARGO
            REPLACES $3.5 MILLION FACILITY WITH ROSENTHAL & ROSENTHAL

New York, NY - July 27, 2005 -- Bluefly, Inc. (NASDAQ SmallCap: BFLY), a leading
online retailer of designer brands, fashion trends, and superior value
(www.bluefly.com), today announced a new $7.5 million credit facility with Wells
Fargo Retail Finance, LLC. The company has the option to increase its maximum
borrowing capacity under the facility up to $12.5 million. The Wells Fargo
facility replaces the company's $3.5 million credit facility with Rosenthal and
Rosenthal, Inc.

"Our new relationship with Wells Fargo affords us much more leverage and an
attractive cost of capital to invest in inventory as we grow our business," said
Bluefly CFO, Pat Barry. "This re-financing is important for our business,
helping us to obtain the proper merchandise mix to support our national
advertising campaign this fall."

"We are impressed with Bluefly's track record and are pleased to be entering
into a relationship that will support their growth initiatives, not only in
2005, but in the long term," said Tim Tobin, National Director of Marketing &
Structuring for Wells Fargo Retail Finance. "The relationship with Bluefly
demonstrates our commitment to high-growth companies and our sustained interest
in the retail sector."

In connection with the transaction, an affiliate of Soros Fund Management LLC
provided a $2 million letter of credit in favor of Wells Fargo in order to
provide further borrowing capacity. The initial borrowing capacity under the
facility, including the availability provided by the Soros letter of credit, is
approximately $6 million.

ABOUT BLUEFLY, INC.
Founded in 1998, Bluefly, Inc. (NASDAQ SmallCap: BFLY) is a leading online
retailer of designer brands, fashion trends and superior values. 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 WELLS FARGO RETAIL FINANCE
Wells Fargo Retail Finance, headquartered in Boston, specializes in building
relationships and delivering customized, flexible financial solutions to single
and multi-channel retailers throughout North America. It is part of Wells Fargo
& Company (NYSE: WFC), a diversified financial services company with $420
billion in assets, providing banking, insurance, investments, mortgage and
consumer finance to more than 23 million customers from more than



6,000 stores and the Internet (wellsfargo.com) across North America and
elsewhere internationally. Wells Fargo Bank, N.A. is the only "AAA"-rated bank
in the United States.

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 company's ability to execute on, and gain additional revenue from, its
consumer public relations and other marketing initiatives; the company's history
of losses and anticipated future losses; need for additional capital and
potential inability to raise such capital; the potential failure to forecast
revenues and/or to make adjustments to 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 market; the availability of
merchandise; the need to further establish brand name recognition; management of
potential growth; and risks associated with our ability to handle increased
traffic and/or continued improvements to its Web site.