                                                                    Exhibit 99.1

                   BLUEFLY REPORTS FIRST QUARTER 2006 RESULTS
                         . Gross Margin Expands to 40.5%
                           . Average Order Size Up 22%

NEW YORK - May 10,  2006 - Bluefly,  Inc.  (NASDAQ  SmallCap:  BFLY),  a leading
online  retailer  of  designer   brands,   fashion  trends  and  superior  value
(www.bluefly.com),  today  announced  strong growth in revenue and margin levels
for the first quarter of 2006.

Highlights for the first quarter 2006 include the following:
     .    Revenue  increased by 25% to $16.9 million from $13.5 million in first
          quarter 2005.
     .    Gross margin expanded by 430 basis points to 40.5% from 36.2% in first
          quarter 2005.
     .    Gross profit increased by 40% to $6.8 million.
     .    Operating loss increased to $3.1 million from $736,000, as a result of
          two items:  the adoption of SFAS123(R),  whereby the company  recorded
          $612,000 of  compensation  expense in connection  with employee  stock
          options; and a year-over-year  incremental increase of $2.9 million in
          spending related to a national advertising campaign.
     .    Average order size  increased by nearly 22% to $243.92 from $200.06 in
          the first quarter of 2005.
     .    Cash balance was $4.4 million, down $5.0 million from year end.
     .    Weighted  average shares  increased to 20.4 million,  due primarily to
          the  conversion of Series D & F Preferred  Stock into shares of common
          stock.

"We are pleased with these quarterly results and are excited about the direction
our business is headed," said Melissa Payner, Bluefly's chief executive officer.
"Our merchandising  strategy continues to pay dividends,  yielding a significant
expansion in gross margins. We remain focused on driving product sales and brand
awareness through aggressive marketing and advertising. That effort has produced
revenue growth in excess of traditional retail growth rates."

The company  will host a conference  call  webcast to discuss its first  quarter
results   at   5   p.m.    EDT.    Investors   can   access   the   webcast   at
www.investor.bluefly.com.

ABOUT BLUEFLY, INC.

Founded in 1998,  Bluefly,  Inc.  (NASDAQ  SmallCap:  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  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

<PAGE>

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.

                                     -more-

<PAGE>

CONDENSED STATEMENTS OF OPERATIONS - UNAUDITED

<TABLE>
<CAPTION>
                                                           THREE MONTHS ENDED
                                                     -----------------------------
                                                       MARCH 31,        MARCH 31,
                                                         2006             2005
                                                     ------------     ------------
<S>                                                  <C>              <C>
Net sales                                            $ 16,876,000     $ 13,502,000
Cost of sales                                          10,037,000        8,617,000
                                                     ------------     ------------
     Gross profit                                       6,839,000        4,885,000
     Gross profit percentage                                 40.5%            36.2%

Selling, marketing and fulfillment expenses             7,464,000        4,035,000
General and administrative expenses                     2,427,000        1,586,000
                                                     ------------     ------------
   Operating loss                                      (3,052,000)        (736,000)

Interest and other income                                  45,000           40,000

Interest expense                                         (257,000)        (197,000)
                                                     ------------     ------------

Net loss                                             $ (3,264,000)    $   (893,000)
                                                     ============     ============

Preferred stock dividends                              (1,231,000)      (1,115,000)

Net loss available to common shareholders            $ (4,495,000)    $ (2,008,000)
                                                     ============     ============

Basic and diluted net loss per share
          (after preferred stock dividends)          $      (0.22)    $      (0.13)
                                                     ============     ============
Weighted average shares outstanding                    20,367,508       15,299,040
                                                     ============     ============
</TABLE>

                                     -more-

<PAGE>

SELECTED BALANCE SHEET DATA & KEY METRICS- UNAUDITED

<TABLE>
<CAPTION>
                                                       MARCH 31,      DECEMBER 31,
                                                         2006             2005
                                                     ------------     ------------
<S>                                                  <C>              <C>
Cash                                                 $  4,429,000     $  9,408,000
Inventories, net                                       21,348,000       16,893,000
Prepaid Inventory                                         159,000          485,000
Other Current Assets                                    3,614,000        3,051,000
Property & Equipment, net                               2,667,000        2,895,000
Current Liabilities--excluding related party
  liabilities below                                    13,856,000       11,936,000
Notes Payable to Related Party Shareholders
 (including interest payable)                           5,366,000        5,217,000
Shareholders' Equity                                   13,280,000       15,865,000
</TABLE>

<TABLE>
<CAPTION>
                                                     THREE MONTHS     THREE MONTHS
                                                        ENDED            ENDED
                                                       MARCH 31,        MARCH 31,
                                                         2006             2005
                                                     ------------     ------------
<S>                                                  <C>              <C>
Average Order Size (including shipping &
  handling revenue)                                  $     243.92     $     200.06
Customers Added During Period                              38,688           36,765
</TABLE>

                                     -more-

<PAGE>

CONDENSED STATEMENTS OF CASH FLOWS       (Unaudited)

<TABLE>
<CAPTION>
                                                            THREE MONTHS    THREE MONTHS
                                                                ENDED            ENDED
                                                              MARCH 31,        MARCH 31,
                                                                2006             2005
                                                            ------------    ------------
<S>                                                         <C>             <C>
Cash flows from operating activities:
 Loss from operations                                       $ (3,264,000)   $   (893,000)
 Adjustments to reconcile loss from operations
   to net cash used in operating activities:
    Depreciation and amortization                                353,000         290,000
    Non-cash expense related to warrants issued to
    consultant                                                    67,000              --
    Non-cash expense related to warrants
      issued to supplier                                          92,000          67,000
    Provisions for returns                                      (629,000)         27,000
    Allowance for doubtful accounts                               43,000          64,000
    Stock options expense                                        612,000          16,000
    Reserve for inventory obsolescence                           240,000         158,000
    Changes in operating assets and liabilities:
     (Increase) decrease in:
      Inventories                                             (4,787,000)       (858,000)
      Accounts receivable                                     (1,274,000)       (754,000)
      Prepaid inventory                                          326,000      (1,652,000)
      Prepaid expenses                                           634,000          79,000
      Other current assets                                        34,000         333,000
     (Decrease) increase in:
      Accounts payable                                         2,063,000       1,427,000
      Accrued expenses and other current liabilities            (186,000)       (273,000)
      Interest payable to related party shareholders             149,000         133,000
      Deferred revenue                                           672,000         203,000
                                                            ------------    ------------

      Net cash used in operating activities                   (4,855,000)     (1,633,000)

Cash flows from investing activities:
Purchase of property and equipment                              (110,000)       (877,000)
                                                            ------------    ------------

      Net cash used in investing activities                     (110,000)       (877,000)
                                                            ------------    ------------

Cash flows from financing activities:
  Net proceeds from exercise of  Stock Options                        --          89,000
  Payment of capital lease obligation                            (14,000)       (114,000)
                                                            ------------    ------------

      Net cash (used in) provided by financing activities        (14,000)        (25,000)
                                                            ------------    ------------

Net increase (decrease) in cash and cash equivalents          (4,979,000)     (2,535,000)

Cash and cash equivalents - beginning of period                9,408,000       6,685,000
                                                            ------------    ------------

      Cash and cash equivalents - end of period             $  4,429,000    $  4,150,000
                                                            ------------    ------------
</TABLE>

<PAGE>

<TABLE>
<S>                         <C>                                <C>
FOR IMMEDIATE RELEASE       Investor Contact:                  Press Contact:
                            Patrick Barry                      Curtis Hougland
                            CFO, Bluefly, Inc.                 RLMpr
                            212- 944-8000 ext. 239             212-741-4660 ext. 220
                            pat@bluefly.com                    curtis@RLMpr.com

                            Budd Zuckerman
                            Genesis Select
                            303-415-0200
                            bzuckerman@genesisselect.com
</TABLE>
