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Press Releases Thursday, February 5, 2004   
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RedEnvelope Announces New Web Site Enhancements

Company Optimizes Search and Image Server to Provide Excellent Customer Experience

SAN FRANCISCO, CA—Feb. 4, 2004 -- RedEnvelope, Inc. (Nasdaq:REDE), the premier multi-channel gift retailer, announced today a number of Web site enhancements to its online store, www.RedEnvelope.com, designed to further create a positive shopping experience for its customers in time for the Valentine`s Day shopping season.

"The gift-buying process is of the utmost importance to us at RedEnvelope," said Alison May, President and CEO of RedEnvelope. "We are constantly looking at business strategies and technology initiatives that allow our customers to have the best possible experience while shopping for a gift on our Web site and through our customer care center."

To implement the site`s new search engine, RedEnvelope selected Endeca, the only provider of search solutions featuring Guided Navigation(SM). The new enhancements allow customers to perform an advanced search for gifts by occasion, recipient, category, and price. Customers can further enhance their search to find a tightly edited selection of gifts targeted to their needs. An important part of the search functionality is the Sort Results feature powered by Guided Navigation, allowing customers to view their findings by pre-programmed categories such as new, favorites, catalog items, and price. This enhanced search engine provides greater flexibility to customers while browsing RedEnvelope`s 14 gift categories.

As a complement to the newly enhanced search, RedEnvelope has increased the size of its Gift Results page to 16 products, up from 12 products. The increased Gift Results page, designed to allow customers to navigate the site with additional ease and flexibility, also gives the customer further control over their shopping experience. A View All feature is a new addition to the site to accommodate the growing customer base with increased broadband.

A final change integrated into the Web site before Valentine`s Day is enhanced, high-resolution product images. Customers can use the zoom feature on the Product Information Page to view products in much closer detail. This feature is designed to increase consumer confidence while shopping on the site by allowing customers to examine the excellent quality and craftsmanship of RedEnvelope products.

"We are building our online store using the same thought process and attention to detail we would put into a brick and mortar store," said Ms. May. "We want RedEnvelope customers to be able to use our new search engine as they would an efficient and helpful personal shopper and our imaging capabilities as if they were holding the product in their hand."

About RedEnvelope, Inc.
Whether a gift is a token of gratitude or a grand gesture of love, we consider its giving and receiving a cherished occasion in itself. In Asian traditions, gifts are often presented in a simple red envelope -- atimeless symbol of love and appreciation. In the spirit of this tradition, gifts purchased from RedEnvelope are accompanied by a personalized message in a red envelope. We offer an extensive collection of imaginative, original gifts for every occasion, recipient and budget through our Web site and catalog, as well as customized corporate gift services. Several unique features help guide customers to the gift they want, including: GiftSearch, GiftReminder, ExpressGifts (guaranteed overnight delivery), online customer service, multiple addressing and an inventory system that tracks in real-time to ensure that every item featured on the site is available. Our goal is to make gift giving -- no matter what the occasion -- easy and fun.

Contact:
Astrid Stevenson
RedEnvelope
(415) 371-9100 x 293
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