Exhibit 99.1

FOR IMMEDIATE RELEASE

                               INVESTOR CONTACT:        MEDIA CONTACT:
                               Pat Barry                Janel Alania
                               CFO, Bluefly, Inc.       PR, Bluefly, Inc.
                               212-944-8000 ext. 239    212-944-8000 ext. 509
                               pat@bluefly.com          janel.alania@bluefly.com


                  BLUEFLY EXTENDS MATURITY OF SHORT-TERM NOTES

NEW YORK, Jan. 15, 2004 - Bluefly, Inc. (NASDAQ SmallCap: BFLY), a leading
Internet retailer of designer brands at discount prices (www.bluefly.com),
announced today that it has completed an extension of approximately $4 million
of short-term debt held by affiliates of Soros Private Equity Partners, LLC.
Under the terms of the new agreement, the four original notes, two of which were
due Jan. 12, 2004, and two of which were due April 14, 2004, will all have a new
maturity date of March 1, 2005. All other terms of the notes remain unchanged.

"I am very pleased to have been able to convert this short-term debt into a
longer maturity, and I am grateful for the continued support of the Soros
organization," said Ken Seiff, Chief Executive Officer of Bluefly, Inc.
"Together with our recent $5 million equity financing, this extension of debt
provides us with significantly more resources to invest in our growing
business."

ABOUT BLUEFLY, INC.
Bluefly, Inc. (NASDAQ SmallCap: BFLY) operates the world's first full service
outlet store for designer fashion, offering products from more than 350
designers at discounts of up to 75% off. With 24/7 access, a 90-day money back
guarantee, and technology that displays real-time inventory, Bluefly makes
off-price shopping easy and convenient. 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",
"should" 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-Q, and 10-K. These risks and uncertainties include, but are not limited
to, the following: recent losses and anticipated future losses; we may not be
able to generate sufficient cash flow to pay our indebtedness when due; we have
granted a lien on substantially all of our assets; the risk that favorable
trends in sales and customer acquisition costs will not continue; potential
adverse effects on gross margin and gross profit resulting from mark downs and
allowances for returns and credit card chargebacks; the competitive nature of
the business and the potential for competitors with greater resources to enter
such business; adverse trends in the retail apparel market; risks of litigation
for sale of unauthentic or damaged goods and litigation risks related to sales
in foreign countries; the dependence on third parties and certain relationships
for certain services, including the Company's dependence on U.P.S. (and the
risks of a mail slowdown due to terrorist activity) and the Company's dependence
on its third-party web hosting and fulfillment centers; risks related to
consumer acceptance of the Internet as a medium for purchasing apparel; the
successful hiring and retaining of personnel; the dependence on continued growth
of online commerce; rapid technological change; online commerce security risks;
the startup nature of the Internet business; governmental regulation and legal
uncertainties; management of potential growth; and unexpected changes in fashion
trends.

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