Blue Nile Offers Attractive Financing Options This Holiday Season; Expands Bill Me Later Offering

Katie Evans

Customers Can Buy Jewelry Today, and Pay No Interest for Six Months on All Orders over $500

SEATTLE--Nov. 10, 2008--
Blue Nile, Inc. (Nasdaq:NILE), the leading online retailer of diamonds and fine jewelry, today announced the expansion of the Bill Me Later payment option. Customers using Bill Me Later now have the option of no interest financing for six months on orders over $500. On orders over $250, customers can select Bill Me Later and pay no interest for 90 days. Blue Nile customers can choose the Bill Me Later payment option when shopping online or over the phone.

In addition to Bill Me Later, Blue Nile also offers third-party financing through Bank of America, as well as payment options that include PayPal, all major credit cards and bank wire transfers.

"Blue Nile is always looking for ways to enhance the shopping experience for our customers, especially throughout the holiday season," said Diane Irvine, Chief Executive Officer of Blue Nile. "Customers will now have even greater options for financing their gift purchases through this expanded Bill Me Later offering."

To use Bill Me Later, customers simply select Bill Me Later as their payment method at checkout, answer two quick questions and then accept the terms. An approval response takes only a few seconds, there are no application fees and there is no need to apply ahead of time. For more details on the financing options available at Blue Nile, please visit: http://www.bluenile.com/services_channel.jsp.

For those looking to purchase jewelry this holiday season, Blue Nile provides a simple and seamless gift-giving shopping experience. Throughout the shopping process, customers can contact Blue Nile`s expert diamond and jewelry consultants by email, live chat or through a 1-800 number posted on every page of the website. Blue Nile offers free FedEx delivery on all purchases, elegant packaging, grading reports for all certified diamonds, professional appraisals for diamond, gemstone and pearl jewelry over $1,000 and a 30-day return period.

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.

CONTACT: Blue Nile, Inc.
Liz Powell, 206-336-6755 (Media)
Eileen Askew, 206-336-6745 (Investors)


Bill Me Later, Blue Nile Inc., Diamond, Nile