<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2005-06-07</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001080359</issuerCik>
        <issuerName>ALLOY  INC</issuerName>
        <issuerTradingSymbol>ALOY</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001162627</rptOwnerCik>
            <rptOwnerName>MLF INVESTMENTS LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>2401 WEST BAY DRIVE</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 124</rptOwnerStreet2>
            <rptOwnerCity>LARGO</rptOwnerCity>
            <rptOwnerState>FL</rptOwnerState>
            <rptOwnerZipCode>33770</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001003947</rptOwnerCik>
            <rptOwnerName>FESHBACH MATTHEW L</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>2401 WEST BAY DRIVE</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 124</rptOwnerStreet2>
            <rptOwnerCity>LARGO</rptOwnerCity>
            <rptOwnerState>FL</rptOwnerState>
            <rptOwnerZipCode>33770</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001276116</rptOwnerCik>
            <rptOwnerName>MLF CAPITAL MANAGEMENT LP</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>2401 WEST BAY DRIVE</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 124</rptOwnerStreet2>
            <rptOwnerCity>LARGO</rptOwnerCity>
            <rptOwnerState>FL</rptOwnerState>
            <rptOwnerZipCode>33770</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001276095</rptOwnerCik>
            <rptOwnerName>MLF CAYMAN GP LTD</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>TRIDENT TRUST COMPANY (CAYMAN) LTD</rptOwnerStreet1>
            <rptOwnerStreet2>ONE CAPITAL PLACE</rptOwnerStreet2>
            <rptOwnerCity>PO BOX 847</rptOwnerCity>
            <rptOwnerState></rptOwnerState>
            <rptOwnerZipCode></rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001275883</rptOwnerCik>
            <rptOwnerName>MLF OFFSHORE PORTFOLIO CO LP</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>TRIDENT TRUST COMPANY (CAYMAN) LTD</rptOwnerStreet1>
            <rptOwnerStreet2>ONE CAPITAL PLACE</rptOwnerStreet2>
            <rptOwnerCity>PO BOX 847</rptOwnerCity>
            <rptOwnerState></rptOwnerState>
            <rptOwnerZipCode></rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001260441</rptOwnerCik>
            <rptOwnerName>MLF PARTNERS L P</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>2401 WEST BAY DRIVE</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 124</rptOwnerStreet2>
            <rptOwnerCity>LARGO</rptOwnerCity>
            <rptOwnerState>FL</rptOwnerState>
            <rptOwnerZipCode>33770</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001304015</rptOwnerCik>
            <rptOwnerName>MLF Holdings LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>2401 WEST BAY DRIVE</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 124</rptOwnerStreet2>
            <rptOwnerCity>LARGO</rptOwnerCity>
            <rptOwnerState>FL</rptOwnerState>
            <rptOwnerZipCode>33770</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock, $.01 par value</value>
            </securityTitle>
            <transactionDate>
                <value>2005-06-07</value>
            </transactionDate>
            <deemedExecutionDate></deemedExecutionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>P</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>50000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>5.1700</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>7489082</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                    <footnoteId id="F1"/>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>MLF Offshore</value>
                    <footnoteId id="F1"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">This report is jointly filed by MLF Investments, LLC (MLFI), Matthew L. Feshbach, MLF Partners, L.P. (MLFP), MLF Offshore Portfolio Company, L.P. (MLF Offshore), MLF Cayman GP, Ltd. (MLFC), MLF Capital Management L.P. (MLFM), and MLF Holdings (MLFH).  MLFI,  Mr. Feshbach, MLF Offshore, MLFC, MLFM and MLFH are deemed to be 10% owners of the Issuer.  These securities are owned directly by MLF Offshore and owned indirectly by MLFC by virtue of it being the general partner of MLF Offshore, by MLFM by virtue of it being the sole shareholder of MLFC,  by MLFH by virtue of it being the general partner of MLFM, by MLFI by virtue of a management agreement with MLF Offshore and by Mr. Feshbach by virtue of his postion as the managing member of MLFI.  Each of MLFI, Mr. Feshbach, MLFP, MLFC, MLFH and MLFM disclaims beneficial ownership of the shares owned by MLF Offshore except to the extent of their respective pecuniary interests therein.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>By: MLF Investments, LLC, By: /s/ Matthew L. Feshbach, its managing member</signatureName>
        <signatureDate>2005-06-09</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>By: /s/ Matthew L. Feshbach</signatureName>
        <signatureDate>2005-06-09</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>By: MLF Capital Management, L.P., By: MLF Holdings, LLC, its general partner, By: /s/ Matthew L. Feshbach, its president</signatureName>
        <signatureDate>2005-06-09</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>By: MLF Cayman G.P., Ltd., By: MLF Capital Management, L.P., its sole shareholder, By: /s/ Matthew L. Feshbach, its president</signatureName>
        <signatureDate>2005-06-09</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>By: MLF Offshore Portfolio COmpany, L.P., By: MLF Cayman GP, Ltd., its general partner, By: MLF Capital Management, L.P., its sole shareholder, By: MLF Holdings, its general partners, By: /s/ Matthew L. Feshbach, its president</signatureName>
        <signatureDate>2005-06-09</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>By: MLF Partners, L.P., By: MLF Capital Management L.P., its general partner, By: MLF Holdings, LLC, its general partner,  By: /s/ Matthew L. Feshbach, its President</signatureName>
        <signatureDate>2005-06-09</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>By: MLF Holdings LLC, /s/Matthew L. Feshbach, its managing member</signatureName>
        <signatureDate>2005-06-09</signatureDate>
    </ownerSignature>
</ownershipDocument>
