Exhibit 99.1

FOR IMMEDIATE RELEASE
                          Investor Contacts:           Press Contacts:
                          Patrick Barry                Cathy Halgas Nevins
                          CFO, Bluefly, Inc.           Dir P.R., Bluefly, Inc.
                          212- 944-8000 ext. 239       212-652-8761
                          pat@bluefly.com              cathy.nevins@bluefly.com

                    SOROS MAKES ADDITIONAL BLUEFLY INVESTMENT

     New York, NY - Sept. 30, 2002 -- Bluefly, Inc. (NASDAQ SmallCap: BFLY), a
     leading Internet retailer of designer brands at discount prices
     (www.bluefly.com), announced today that affiliates of Soros Private Equity
     Partners had invested an additional $3.0 million in the company. As a
     result of the financing, Soros' stake in Bluefly increased from
     approximately 83% to approximately 87% (excluding the effect of any
     conversion of debt purchased by Soros in this round) of the company's
     outstanding equity.

     Under the terms of the deal, Bluefly issued $1,000,000 of Series C
     Convertible Preferred Stock, as well as $2 million of demand convertible
     promissory notes that bear interest at a rate of 3%. per annum and have a
     maturity date of March 26, 2003. The promissory notes are convertible into
     Series C Convertible Preferred Stock, at the holder's option, and the
     Series C Convertible Preferred Stock is convertible into Common Stock, at
     the holder's option, at the rate of $0.93 per share.

     As a result of the financing, the conversion price of the Company's Series
     B Preferred Stock held by Soros automatically decreased from $1.57 to
     $0.93. In accordance with EITF 00-27, this reduction in the conversion
     price of the Company's Series B Preferred Stock will result in Bluefly
     recording a beneficial conversion feature in the approximate amount of $5.1
     million as part of its third quarter financial results. This non-cash
     charge, which is analogous to a dividend, will result in an adjustment to
     the Company's computation of (Loss)/Earnings Per Share.

     The securities sold in the private placement have not been registered under
     the Securities Act of 1933, as amended (the "Securities Act"), and may not
     be offered or sold in the United States unless registered under the
     Securities Act or an applicable exemption from registration is available.
     This press release does not constitute an offer to sell or the solicitation
     of an offer to buy, nor shall there be any sale of these securities in any
     state in which such offer, solicitation or sale would be unlawful prior to
     the registration or qualification under the securities laws of any such
     state.

     About Bluefly, Inc.

     Bluefly operates the world's first full service online store for designer
     fashion, offering products from more than 350 designers at discounts of up
     to 75%. 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", 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: the Company's recent losses and anticipated future losses;
the Company's limited working capital, need for additional capital and potential
inability to raise such capital; security interests on the Company's assets that
have been granted to third parties; the Company's inability to accurately
forecast revenue; 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; consumer acceptance of the Internet as a medium
for purchasing apparel; the risk that favorable trends in sales, repeat customer
sales, gross profit, gross margin and reduced selling, marketing and fulfillment
expenses and reductions in operating losses will not continue; risks that the
Company will be unable to reduce the levels of losses; potential adverse effects
on gross margin resulting from mark




downs and allowances; the competitive nature of the business and the potential
for competitors with greater resources to enter such business; the dependence on
third parties and certain relationships for certain services, including the
Company's dependence on United States Postal Service and 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; the capital intensive
nature of such business (taking into account the need for advertising to promote
such business); 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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