SANTA BARBARA, CA, March 8, 2004 - Big Dog Holdings, Inc. (NASDAQ:BDOG) is pleased to announce that it has completed the acquisition of The Walking Company effective March 3 for cash, debt and equity securities totaling approximately $19 million. The Walking Company is the leading specialty retailer of high-quality, technically designed comfort walkwear & accessories, featuring quality brands such as Ecco, Mephisto, Dansko, Birkenstock and Merrell. It markets its collections of products through more than 70 retail store locations with total annual sales of approximately $65 million. The Walking Company will be operated as a subsidiary of Big Dog Holdings, Inc.

Big Dog Holdings, Inc. is the parent company of Big Dog Sportswear, which develops, markets and retails a branded, lifestyle collection of unique, high-quality, popularly priced consumer products, including active wear, casual sportswear, accessories and gifts. The BIG DOGS brand image is one of quality, fun and a sense of humor. 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 194 retail stores, Big Dogs markets its products through its catalog, better wholesale accounts and Internet sales.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

With the exception of historical information, the matters discussed in this press release are forward looking statements that involve a number of risks and uncertainties. The actual future results of the Company could differ significantly from those statements. Further information on the Company's risk factors is contained in the Company's quarterly and annual reports as filed with the Securities and Exchange Commission.


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Big Dog Holdings, Inc.
121 Gray Avenue
Santa Barbara, California 93101


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Liz Gates
Investor Information
(805) 963-8727, ext. 1216