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Bluefly Gets Another Cash Infusion

Internet clothing retailer Bluefly , whose stock is trading around $1 a share, said that affiliates of Soros Private Equity Partners have invested an additional $1 million in the company.

New York City-based Bluefly, which sells designer brands at a discount, issued $1 million of demand convertible promissory notes that bear interest at 8 percent per year and have a maturity date of July 30, 2003 and warrants to purchase 25,000 shares of its common stock, exercisable at any time during the next four years, at $1.12 per share.

Soros Private Equity Partners, which is the venture capital arm of the $10 billion fund headed by legendary hedge fund manager George Soros, rode to the company's rescue in 2000 when the Internet recession began to set in several years ago. Soros now holds an 87.9 percent stake in Bluefly through his investment vehicles.

The company also said it expects to release full year 2002 and fourth quarter financial results on February 25. For the third quarter net sales increased by 23 percent to $6.3 million. Net loss was $2.23 million.

In December the company said that net sales for the month of November 2002 increased by approximately 31 percent to more than $3.1 million from nearly $2.4 million for November 2001.

Last fall Bluefly, located on W. 39th St. in the heart of the Fashion District, relaunched its Web site and added keyword search, a more powerful version of its size finder tool that enables shoppers to locate products in their exact size, and better analytical tools.