Big Dog Holdings, Inc. Announces Closing Private Convertible Debt Financing

SANTA BARBARA, CA -- (MARKET WIRE) -- April 11, 2007 -- Big Dog Holdings, Inc. (NASDAQ: BDOG) (www.bigdogs.com) (www.thewalkingcompany.com) announced today that it has completed a private equity placement of $18.5 million of 8.375% Convertible Notes due 2012. The Notes are convertible into shares of common stock at a price of $18.00 per share. Thomas Weisel Partners LLC and Wells Fargo Securities LLC served as placement agents for the transaction.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any security. The securities have not been registered under the Securities Act of 1933, as amended, or any state securities laws. Unless so registered, the common stock may not be offered or sold in the United States absent an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any applicable state securities laws. As part of this transaction Big Dog Holdings, Inc. has agreed to file a registration statement covering the resale of the shares of common stock issuable upon conversion of the Notes.

Big Dog Holdings, Inc. consists of its The Walking Company and Big Dogs subsidiaries. The Walking Company is the leading specialty retailer of high-quality, technically designed comfort shoes and accessories that features premium brands such as ECCO, Mephisto, Dansko, 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 149 stores in premium malls across the nation. 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 145 retail stores, Big Dogs markets its products through its catalog and internet.

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 sales and other 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.

Contact Information: For Further Information: Big Dog Holdings, Inc. 121 Gray Avenue Santa Barbara, California 93101 www.bigdogs.com www.thewalkingcompany.com CONTACT: Alexis Dilg Investor Information (805) 963-8727, extension 1360 Email Contact