2007

June 18, 2007 FOR IMMEDIATE RELEASE

Contact: Eva Pereirai
(781) 559-0424
Eva.Pereira@rfbinder.com

BAG BORROW OR STEAL RAISES $15 MILLION IN FUNDING
Online "Borrowed Luxury" Company Focused on Membership Growth and Category Expansion

SEATTLE, WA (June 18, 2007) — Bag Borrow or Steal (bagborroworsteal.com), the largest online "borrowed luxury" retailer allowing women to borrow designer handbags and jewelry, today announced a third round of institutional funding, totaling $15 million, has been raised. The oversubscribed round was led by venture capital firms Steelpoint Capital Partners and Madrona Venture Group and included investments from Kuwait Holding Company, Hilltop Investments and individual investors. Bag Borrow or Steal will use this funding to expand into new luxury product categories and increase its membership. The company's growth has been generated by innovative marketing programs, strong consumer response to an entirely new shopping experience and strategic partnerships with top designers.

"We've achieved tremendous success over the past year and the additional financial support will fund our continued growth and drive expansion into new product categories," said Michael Smith, chief executive officer of Bag Borrow or Steal. "This will allow us to provide our members with what they've been asking for — even greater access to a vast inventory of designer accessories and the opportunity to enjoy luxury when they want, for as long as they want."

Currently, Bag Borrow or Steal offers its member base of over 250,000 the opportunity to borrow more than 3,000 styles of luxury handbags and jewelry from more than 100 designers, including Chanel, Gucci, Prada, Louis Vuitton, Coach, Stephen Dweck and Vera Wang. The company's plan to expand its offerings into additional luxury accessory categories is in direct response to high consumer demand and popularity of borrowing as a new means for increased access to designer accessories.

Steelpoint Capital Partners led the initial financing in 2005, recognizing the potential of the company's business model. "Bag Borrow or Steal was the first company out of the gate to introduce the concept of 'borrowed luxury' and is now the largest and most reputable player within the competitive landscape," said Adam Dell, managing director at Steelpoint Capital Partners. "The company's strong position within the marketplace, coupled with their talented executive management team, will be what drives their business model successfully into new product categories."

"We've watched Bag Borrow or Steal establish itself as the leader in an entirely new space and have been impressed with how they've been able to change people's perception of how they access luxury items," said Robert Bennett, former chief executive officer of Liberty Media Corporation and managing director at Hilltop Investments, a new institutional investor. "Bag Borrow or Steal has proven itself within the market and is clearly committed to expanding their offering and delivering the best possible customer experience."

Talal Jassim Al-Bahar, chairman and managing director of Kuwait Holding, adds, "We are pleased to be part of Bag Borrow or Steal. We believe they have a promising future in the luxury goods market and we hope to expand this experience into our markets."

About Steelpoint Capital Partners
Steelpoint Capital Partners is a growth oriented private equity firm. With offices on both coasts, the firm invests in expansion stage companies in the information technology, media and marketing services, healthcare and consumer markets. Steelpoint was established in 2003 as a spinout of the private equity group of Moore Capital Management. The firm has a flexible investment mandate and invests in companies with outstanding management teams and established products and services. The firm's portfolio includes over 25 companies throughout the United States. Steelpoint's team draws on extensive operating and investment experience to provide value-added support to portfolio companies and their management.

About Madrona Venture Group
Madrona is an early-stage venture capital firm focused on building leading technology companies in the Pacific Northwest. Started in 1995, the Firm has established a national reputation of partnering with entrepreneurs, investors and advisors to create value together. The firm invests predominately in seed and Series A rounds across the information technology spectrum including software, Internet, wireless and infrastructure. Madrona currently manages over $400 million, and has consistently delivered top-quartile performance and 30 positive exits including: Amazon.com, Isilon Systems, Classmates.com and iConclude.

About Hilltop Investments
Hilltop Investments is an investment vehicle owned by Robert and Deborah Bennett.

About Kuwait Holding Company
Kuwait Holding Co. is located in Kuwait, with capital of 300 million U.S. dollars. The firm has strategic investments in the local market as well as a diversified global portfolio. The portfolio includes investments in equity, real estate, services and construction. The company strives to expand its investments both globally and into other promising sectors.

About Bag Borrow or Steal
Founded in 2004, Bag Borrow or Steal is the largest online 'borrowed luxury' retailer. Called "Netflix for Handbags" by The New York Times, the company is focused on providing a new means for women to access and enjoy luxury accessories when they want, for as long as they want. Members simply select designer handbags and jewelry to borrow, keep them as long as they like and then purchase or exchange them for something new. With a member base of more than 250,000, Bag Borrow or Steal offers the opportunity to borrow more than 3,000 styles of luxury accessories from more than 100 designers, including Chanel, Gucci, Prada, Louis Vuitton, Coach, Stephen Dweck and Vera Wang. For more information visit www.BagBorroworSteal.com.