RedEnvelope.com Gets a High Ranking Gift From Internet Retailer's Top 500 Guide

SAN FRANCISCO, CA -- (MARKET WIRE) -- 05/21/08 -- RedEnvelope, Inc. (PINKSHEETS: REDEQ) announces its ranking in the Internet Retailer's Top 500 Guide. For 2007, RedEnvelope has been ranked as number 132 for its web sales and number four in the Top 500 flowers/gifts category.

Internet Retailer's definitive ranking and analysis of America's 500 largest e-retailers is based on annual 2007 Internet sales, researched by Internet Retailer and confirmed by retailers. This report includes company financial, operational and performance data, as well as vendors in 18 key categories.

"We're excited that we have ranked high in both overall web sales and the category of flowers/gifts," said Scott Sanborn, General Manager of RedEnvelope, Inc. "We thank our customers who continue to make RedEnvelope.com their definitive online retail destination for all of their gift giving needs."

"We're pleased once again to have been able to include RedEnvelope among the ranks of America's largest online retailers," says Kurt Peters, Editor in Chief of Internet Retailer. "The fact that they rank number 132 in the Top 500 Guide is evidence of the broad array of gift merchandise that consumers will buy online."

About Internet Retailer

Published by Chicago-based Vertical Web Media LLC, Internet Retailer is a monthly national business magazine, web site conference and directory that serve the retailing community. The Internet Retailer family of products focuses on the Internet's vital role in a wide array of retailing activities, including web merchandising, supply chain management and multi-channel integration. Its 40,000+ subscribers are senior executives primarily from retail chains, independent stores, catalogs, virtual merchants and brand name manufacturers. Internet Retailer's circulation represents the largest multi-channel readership base of any retailing magazine. The magazine also publishes the most widely read e-mail newsletter in retailing, IRNewsLink, which is distributed twice-weekly to 35,000 opt-in subscribers, operates the largest retailing information web site, InternetRetailer.com, sponsors the largest conference in the e-retailing industry and publishes an annual ranking of the 500 largest web sites.

About RedEnvelope, Inc.

RedEnvelope, Inc. is a retailer dedicated to inspiring people to celebrate their relationships through giving. RedEnvelope offers an extensive collection of imaginative gifts through its webstore, www.RedEnvelope.com.

"RedEnvelope" is a registered trademark of RedEnvelope, Inc.

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. The forward-looking statements contained in this press release include statements which may be preceded by the words "plan," "will," "expect," "believe," or similar words. Such statements are based upon current expectations and involve risks and uncertainties. The Company's actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of several factors. Factors that could affect future performance include, but are not limited to: the Company's ability to obtain bankruptcy court approval of the DIP Agreement; operate pursuant to the terms of the DIP Agreement; fund its working capital needs through the expiration of the DIP Agreement; obtain bankruptcy court approval of the Agreement and consummate the Agreement in a timely manner; complete the Chapter 11 process in a timely manner; continue to operate in the ordinary course and manage its relationships with its creditors, noteholders, vendors, employees and customers given the Company's financial condition; limit the amount of time the Company's management and officers devote to restructuring, in order to allow them to run the business and retain a number of its key managers and employees, and other risk factors described in detail in our Report on Form 10-K for the fiscal year ended April 1, 2007 and Quarterly Report on Form 10-Q for the period ended December 30, 2007, including, without limitation, those discussed under the caption, "Risk Factors," which documents are on file with the Securities and Exchange Commission (the "SEC") and available at the SEC's website at www.sec.gov. These forward-looking statements are made only as of the date of this press release, and RedEnvelope undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. The lack of any update or revision is not intended to imply continued affirmation of forward-looking statements contained herein.