Blue Holdings, Inc. Receives Nasdaq Staff Determination Letter Regarding Failure...

Blue Holdings, Inc. Receives Nasdaq Staff Determination Letter Regarding Failure to Maintain Minimum Bid Price and Stockholders' Equity Requirements

Announces Possible Restatement of 2007 Financial Statements
COMMERCE, Calif.--(Business Wire)--
Blue Holdings, Inc. (NASDAQ:BLUE), a designer, manufacturer and
distributor of high-end fashion jeans, today announced that the
Company received a Nasdaq Staff Determination Letter on May 14, 2008
indicating that the Company fails to comply with the minimum bid price
and stockholders' equity requirements for continued listing set forth
in Marketplace Rules 4310(c)(4) and 4310(c)(3)(A), respectively, and
that its securities are therefore subject to delisting from The Nasdaq
Capital Market. On or before May 21, 2008, the Company expects to
request a hearing before a Nasdaq Listing Qualifications Panel to
review the Staff Determination. There can be no assurance that the
Panel will grant the Company's request for continued listing.

Pending a decision by the Panel, the Company's shares will remain
listed on the Nasdaq Capital Market.

The Company also announced that it may need to restate its
financial statements for the year ended December 31, 2007, and certain
of the quarters therein, as a result of potential accounting errors.
The Audit Committee of the Board of Directors, comprised of
independent directors, has commenced a review of these potential
errors, and is working with the Company's recently hired Chief
Financial Officer, Eric Hohl, to conclude the review as quickly as
possible. The potential accounting errors relate to, among other
matters, related party accounting entries made in calendar year 2007.
The impact of any potential restatement is not known at this time. The
Company will delay the filing of its 10-Q for the quarter ended March
31, 2008 until such time as the potential restatement matters are
resolved.

The company's Chief Executive Officer, Glenn Palmer, stated, "We
are very disappointed to have to make today's announcements, but are
committed to doing the right thing for the Company and our
shareholders. Clearly, our prior internal controls had material
weaknesses. One of my principal initiatives has been to build out our
internal controls and we continue to take actions to do that."

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 Blue
Holdings' restatement matters, future financial results and the
results of the Nasdaq Listing Qualifications Panel. 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.

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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