COMMERCE, Calif., Jul 17, 2008 (BUSINESS WIRE) ----Blue Holdings, Inc. (NASDAQ:BLUE), a designer, manufacturer and distributor of high-end fashion jeans, today announced it has signed a Term Sheet outlining the basic business terms of a joint venture (JV) where Blue Holdings, Inc. and Headgear Inc. will co-market select Blue Holdings brands, including Taverniti So and Antik Denim, to selected Headgear retailers, and jointly develop new non-denim products. Blue Holdings and Headgear hope to execute the definitive joint venture agreement shortly.

Under the terms of the joint venture, Blue Holdings will provide sales and marketing support for selected accounts, introduce new accounts and co-develop new products. Headgear will design and develop all non-denim apparel and footwear and will share all production resources and sourcing resources world-wide. In addition, Blue Holdings will provide celebrity introductions to Headgear brands and link web sites for co-marketing opportunities.

Founded in 1992, Headgear Sportswear is today a wholesale designer and marketer of young men's and junior's apparel in the U.S., with a portfolio of private label brands such as Blac Label, Blac Label Pink, Blac Label Gunmetal and Tru Ambition footwear. Headgear's private label brands are sold through multiple retail channels.

"We are very excited to partner with Headgear Inc," said, Glenn Palmer, Chief Executive Officer of Blue Holdings, Inc. "This venture will be an important step forward for Blue Holdings and Headgear. The partnership of these two companies has tremendous synergies. By combining our respective core competencies and creative vision, we will greatly expand the product offerings under the Antik and Taverniti brands as well as their bases of distribution. We look forward to a long and successful relationship."

Jeff Watson, Chief Executive Office of Headgear Inc., said, "Headgear is more than excited to begin work with Blue holdings on a joint venture to make Taverniti and Antik denim pure lifestyle brands. Headgear's lead brand Blac Label will have estimated sales of $200 million at retail with estimated profits of $25 million for 2008. I feel in teaming with Blue, we can take Antik and Taverniti and form pure and complete collections to complement the their excellent denim products."

About Blue Holdings, Inc.

Blue Holdings, Inc., directly and through its wholly owned subsidiaries, Antik Denim, LLC and Taverniti So Jeans, LLC, designs, develops, manufactures, markets, distributes and sells high-end fashion jeans, apparel, and accessories under the "Antik Denim," "Yanuk," "Taverniti So Jeans," and "Faith" brands both in the United States and internationally. Blue Holdings currently sells men's, women's and children's styles. Antik Denim, Yanuk, Taverniti So and Faith jeans and apparel are made from high-quality fabrics milled in the United States, Japan, Italy and Spain, and are processed with cutting-edge treatments and finishes. Blue Holdings' concepts, designs, embellishments, patent-pending pockets and great attention to detail and quality give it a competitive advantage in the high-end fashion jeans market.

Forward-Looking Statements

This release contains "forward-looking statements" that include information relating to future events. Examples of forward looking statements included in this release include statements regarding the proposed joint venture with Headgear Inc. and the timeline to sign a definitive agreement. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which that performance or those results will be achieved. Forward-looking statements are based on information available at the time they are made and/or management's good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause these differences include, but are not limited to: fluctuations in demand for Blue Holdings' products, the introduction of new products, Blue Holdings' ability to maintain customer and strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of Blue Holdings' liquidity and financial strength to support its growth, and other information that may be detailed from time to time in Blue Holdings' filings with the United States Securities and Exchange Commission. For a more detailed description of the risk factors and uncertainties affecting Blue Holdings, please refer to the Company's recent Securities and Exchange filings, which are available at www.sec.gov. Blue Holdings undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE: Blue Holdings, Inc.

Blue Holdings, Inc. Eric Hohl, CFO, 323-725-5555 eric.hohl@blueholdings.com or Integrated Corporate
   Relations 310-954-1100 Andrew Greenebaum agreenebaum@icrinc.com or Patricia Dolmatsky pdolmatsky@icrinc.com 

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   Business Wire 2008