Bluefly, Inc (NASDAQ SmallCap: BFLY), an Internet retailer of designer fashions and home furnishings at outlet store prices www.bluefly.com , announced today that it has expanded and extended its relationship with America Online, Inc (NYSE: AOL) for placement in the Shop@AOL online shopping destinations. Under the new agreement, Bluefly.com will be a gold tenant in the following Shop@AOL, AOL.COM, CompuServe, Netscape, Spinner and Winamp online shopping destinations: women's clothing and accessories; men's clothing and accessories; teen girl's clothing and accessories; department stores, shoes, handbags, and accessories; and home furnishings and decor. In addition, Bluefly will be a silver tenant in the kids and baby clothing and accessories area and will make its over 200,000 items easily available through AOL's popular shopping search database. "AOL has proven to be a significant, cost-effective customer acquisition tool for Bluefly," said Alanna Richter, vice president of marketing at Bluefly. "Working with AOL should enhance our ability to gain high value customers in an economic and highly branded manner," Richter added. "We've had a great relationship with Bluefly," said Patrick Gates, AOL vice president of e-commerce. "Bluefly's breadth and depth of quality designer products, in addition to their well-respected brand name, helps us provide a truly great shopping experience for AOL and CompuServe members and visitors to our web-based brands."