Blue Nile - One Year Anniversary of its European Headquarters in Dublin

19/06/2008

Blue Nile
Blue Nile is the largest online retailer of certified diamonds and fine jewellery

Tánaiste and Minister for Enterprise, Trade and Employment Mary Coughlan TD, today (19 June 2008) welcomed the celebration by Blue Nile, the largest online retailer of diamonds and fine jewellery, of the one year anniversary of its European Headquarters in Dublin. The company will recruit skilled and qualified people for positions in customer support, light assembly, logistics and quality control. IDA Ireland worked closely with the company to attract it to Dublin and advised on the advantages of doing business from Ireland.

Blue Nile, a U.S. Company based in Seattle, Washington, provides consumers with a superior way to buy diamond engagement rings, wedding rings and fine jewellery. The Company offers consumers unmatched quality, selection, and service and provides in-depth educational materials and unique online tools that place consumers in control of their jewellery shopping experience.

The Tánaiste said “Blue Nile is a superb addition to the base of U.S. online companies that have established themselves in Ireland. The Company’s decision to open its European Headquarters here is testament to the strength of the high-tech industry within the country. I am pleased that Blue Nile has been able to successfully grow its international business from Ireland.”

Blue Nile opened its European Headquarters in Dublin in May of 2007 to better serve its growing European customer base. The Company’s Dublin office provides customers with voice and email support services. Orders are fulfilled and shipped from Dublin to customers throughout Ireland, the UK and the rest of Europe. Blue Nile provides quick turnaround time on customised jewellery, which can be dispatched within 5-7 business days. The Company offers free overnight delivery to all counties in Ireland and to most countries throughout Europe.

“Blue Nile is excited to celebrate the one year anniversary of the first shipment from The Company’s European headquarters in Dublin,” said Paul Forman, Blue Nile’s Director of European Operations. “I am pleased to announce that since May of 2007, Blue Nile has shipped to all counties in Ireland and nearly every country in Europe. We would like to thank IDA Ireland for providing Blue Nile with an unparalleled level of co-operation, assistance and support over the past year. We look forward to continuing to grow our international business from Ireland.”

Blue Nile Inc

Blue Nile, Inc. is the leading online retailer of diamonds and fine jewellery. The Company delivers the ultimate customer experience, providing consumers with a superior way to buy engagement rings, wedding rings and fine jewellery. Blue Nile offers in-depth educational materials and unique online tools that place consumers in control of the jewellery shopping process. The Company has some of the highest quality standards in the industry and offers thousands of independently certified diamonds and fine jewellery 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.

FACT SHEET

In May of 2007, Blue Nile opened an operations center in Ireland to better serve the UK and Ireland and to provide an operating base for expansion into the rest of Europe. In 2007, the Company’s international revenues grew over 100% to $17.2 Million (this includes Canada, the UK and Ireland – we don’t break it out by country). While still a small portion of overall revenues ($319 MM total for the whole year), we expect that the international side of the business will be a great source of growth for the Company going forward.

As is the case in the United States, Blue Nile offers unmatched quality, selection, service and value to customers in Ireland. Diamonds in Europe tend to be severely marked-up (even more so than in the US, where on average they are marked up 100%). Blue Nile’s prices are far below those of traditional jewelers. In addition, because diamonds are priced in dollars, customers in Ireland (and the rest of Europe) are getting an even better deal at present time (with the Euro being so strong against the dollar). Education is also a key differentiator for Blue Nile – the diamond and jewelry education sections of our website give consumers the essentials they need to know to make an informed decision. Transparency like this does not exist with the traditional brick and mortar shopping experience.

Perhaps the most important thing to point out is the selection of diamonds that Blue Nile is able to offer to customers in Ireland. The demand for diamonds in Europe is high and yet the supply is low (According to IDEX - International Diamond and Jewelry Exchange – 50% of the world’s market for diamonds is in the US, whereas 13% is in Europe). Customers who shop with Blue Nile have access to the Company’s virtual inventory of over 60,000 independently certified diamonds.

Employees at Blue Nile’s facility in Blanchardstown handle day to day operations for the Company’s European business that includes everything from answering customer service calls to setting engagement rings. Earlier this year, the Company started shipping to the rest of Western Europe (orders to Switzerland and Norway are shipped from our US facility) – these orders are all being handled from the Dublin office.

For further information please contact –

Department of Enterprise, Trade and Employment –
Press Office, Tel: 01- 6312200

IDA Ireland –
Ruth Croke, Press & PR Manager. Tel: 087 4195051 ruth.croke@ida.ie
Brendan Kenny, Press & PR Officer, Tel: 087 9036126