Big Dog Holdings, Inc. Repurchases a Block of Options for 245,000 Shares


SANTA BARBARA, CA. -- (MARKET WIRE) -- May 10, 2007 -- Big Dog Holdings, Inc. (NASDAQ: BDOG); (www.bigdogs.com, www.thewalkingcompany.com), a developer and retailer of branded, lifestyle consumer products, today reported that on May 9 it purchased from officers of the Company all of the vested employee stock options held by them that would otherwise expire within one year of the current date. Options for a total of 245,000 shares were purchased from five officers (no options were purchased from the CEO, Andrew Feshbach). The purchase price was $16.00 per share, less the exercise price of the options, which ranged from $6.50 to $10.00 per share. The $16.00 price represents a discount of approximately 5% from the May 9 closing price of $16.80. The net purchase price was $1,964,800. The Company paid for the options by delivery of notes bearing interest at 7% per annum and payable in two equal installments on April 10, 2008 and April 10, 2009.

Big Dog Holdings, Inc. consists of Big Dogs and The Walking Company. Big Dogs develops, markets and retails a branded, lifestyle collection of unique, high quality, popular-priced consumer products, including activewear, casual sportswear, accessories and gifts. The BIG DOGS® brand image is one of quality, value and fun. The BIG DOGS® brand is designed to appeal to people of all ages and demographics, particularly baby boomers and their kids, big and tall customers, and pet owners. In addition to its 144 retail stores, Big Dogs markets its products through its catalog, internet and corporate sales accounts. The Walking Company is a leading independent specialty retailer of high quality, technically designed comfort shoes and accessories that features premium brands such as ECCO, Mephisto, Dansko, Birkenstock and Merrell among many others. These products have particular appeal to one of the largest and most rapidly growing demographics in the nation. The Walking Company operates 152 stores in premium malls across the nation.

Contact Information: For Further Information: Big Dog Holdings, Inc. 121 Gray Avenue Santa Barbara, California 93101 www.bigdogs.com www.walkingco.com CONTACT: Laura Russell Investor Information (805) 963-8727, ext. 1360 Email Contact