Blue nileEDUCATION. GUIDANCE. DIAMONDS AND FINE JEWELRY

World’s Premier Online Jeweler Launches Fully Redesigned Site; Embraces Premium Brand Status

SEATTLE--(BUSINESS WIRE)--Sep. 1, 2009-- After 10 years in business, Blue Nile, Inc. (NASDAQ:NILE), the leading online retailer of diamonds and fine jewelry, today announced the launch of an all new Blue Nile website (www.bluenile.com). With new innovative features, enhanced product visualization, larger images, expanded product detail, and new ways to view products the site provides customers with an even better way to shop for the finest in diamonds and jewelry.

“Since our founding in 1999, Blue Nile has grown from startup to become the leading online jewelry retailer, as well as one of the largest specialty jewelers in the world. We created the new website to provide an enhanced look and feel that reflects our premium brand positioning,” said Diane Irvine, Chief Executive Officer. “Consistent with our guiding principle of executing with excellence for our customers, our site provides exciting new tools and features that will enhance the Blue Nile shopping experience.”

As one of the world’s largest sellers of fine diamonds and diamond engagement rings, Blue Nile has enhanced its Diamond Search capability and BUILD YOUR OWN RING^® feature with a completely new layout, providing more search tools for consumers, and even greater ease of use. In addition, Diamond Search contains a new, intuitive comparison feature, which enables customers to evaluate diamonds side-by-side. The new BUILD YOUR OWN RING^® feature is even more powerful than the original, containing more information and tools to make it even easier for customers to create their perfect ring.

The new site also provides enhanced navigation, search, and product filtering capabilities. These new features let customers define and have more control over the shopping process. Consumers can now narrow their selection to generate a product assortment customized to their specifications, rather than view numerous pages to find their perfect product.

“Most fine jewelry customers are men buying gifts for their wives or girlfriends,” said Senior Vice President Sue Bell. “We know our customers, and they want to be in control of the shopping process. This redesign gives him even more tools to create his own shopping experience.”

New Blue Nile Features: A Closer Look

BUILD YOUR OWN RING^®: Even more powerful than its predecessor, the new BUILD YOUR OWN RING^® feature, which searches more than 60,000 fine diamonds in seconds, provides a more intuitive user interface. In addition to being able to filter results by carat weight, cut, color, and clarity, consumers can use advanced search features including delivery date, polish, symmetry, depth and table percentage, fluorescence, price per carat, and culet. The updated BUILD YOUR OWN RING^® also allows customers to watch as their ring evolves into a finished engagement ring as they progress through the shopping process.

Enhanced Product Visualization: Product images on the new Blue Nile site are more than four times larger than on the previous site. The larger product images, ability to see greater detail, and additional product views give customers a close-up look at the high degree of quality and superior craftsmanship that goes into every Blue Nile product.

Advanced Product Search & Filtering: To simplify the shopping process, consumers can now narrow product selections by budget, metal type, gemstone, product (earrings or bracelets, necklaces or rings), as well as many other criteria. The result – products tailored to individual specifications in seconds.

Product Detail Flyouts: With the goal of empowering consumers and providing them with as much information as possible, consumers no longer need to click on a product to access additional information. As they’re shopping, consumers can simply use their mouse to hover over a product image, and a flyout will appear containing all the information needed to make a purchase. This includes details such as carat weight, number of gemstones, type of clasp on a necklace or bracelet, as well as many other criteria.

Improved Diamond Search: For those customers searching for the perfect diamond, Blue Nile now provides them with the ability to save multiple diamonds simultaneously to be viewed later. To make finding the perfect diamond an even more empowering and objective purchase, the Diamond Comparison tool assembles diamonds into an easy-to-read chart, making it possible to compare and contrast quality criteria and price side-by-side.

Blue Nile: A Decade of The Finest Diamonds

Created in late 1999, the Blue Nile website was launched as a practical, straightforward service designed to help men do one thing – find the perfect diamond. With education, guidance, and no-pressure customer service at its core, Blue Nile quickly built a large following. Over the past 10 years the brand grew and the original website evolved, adding an interactive proprietary Diamond Search tool, the ability to customize your own diamond engagement ring online with the BUILD YOUR OWN RING^® feature, and, eventually create custom diamond earrings and diamond pendants.

As consumer demand grew, Blue Nile expanded its product offering to include pearls, sterling silver, gemstone jewelry, fine watches, and accessories. While the original Blue Nile consumer was a young, tech-savvy guy looking for a diamond engagement ring, the customer base soon grew to include men and women of all ages from across the country.

Today, Blue Nile ships diamonds and fine jewelry to more than forty countries and markets around the world. The company has grown to become one of the premier jewelry brands and one of the largest sellers of fine diamonds in the world.

The new Blue Nile website embraces the company’s premium brand status and further positions Blue Nile to become one of the world’s most recognized luxury jewelry brands.

About Blue Nile, Inc.

Blue Nile, Inc. is the leading online retailer of diamonds and fine jewelry. The Company delivers the ultimate customer experience, providing consumers with a superior way to buy engagement rings, wedding rings and fine jewelry. Blue Nile offers in-depth educational materials and unique online tools that place consumers in control of the jewelry shopping process. The Company has some of the highest quality standards in the industry and offers thousands of independently certified diamonds and fine jewelry at prices significantly below traditional retail. Blue Nile can be found online at www.bluenile.com, www.bluenile.ca and www.bluenile.co.uk. Blue Nile's shares are traded on the Nasdaq Stock Market LLC under the symbol NILE.

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Source: Blue Nile, Inc.

Blue Nile, Inc.
John Baird, 206-336-6805 (Media)
johnb@bluenile.com
Liz Powell, 206-336-6755 (Media)
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or
Eileen Askew, 206-336-6745 (Investors)
eileena@bluenile.com