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

    <schemaVersion>X0201</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2004-03-09</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>0</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>BANK OF BERMUDA (CAYMAN) LIMITED</rptOwnerStreet1>
            <rptOwnerStreet2>6 FRONT STREET</rptOwnerStreet2>
            <rptOwnerCity>HAMILTON HM11</rptOwnerCity>
            <rptOwnerState></rptOwnerState>
            <rptOwnerZipCode></rptOwnerZipCode>
            <rptOwnerStateDescription>BERMUDA</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>BANK OF BERMUDA (CAYMAN) LIMITED</rptOwnerStreet1>
            <rptOwnerStreet2>6 FRONT STREET</rptOwnerStreet2>
            <rptOwnerCity>HAMILTON HM11</rptOwnerCity>
            <rptOwnerState></rptOwnerState>
            <rptOwnerZipCode></rptOwnerZipCode>
            <rptOwnerStateDescription>BERMUDA</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>BANK OF BERMUDA (CAYMAN) LIMITED</rptOwnerStreet1>
            <rptOwnerStreet2>6 FRONT STREET</rptOwnerStreet2>
            <rptOwnerCity>HAMILTON HM11</rptOwnerCity>
            <rptOwnerState></rptOwnerState>
            <rptOwnerZipCode></rptOwnerZipCode>
            <rptOwnerStateDescription>BERMUDA</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>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock, $.01 par value</value>
            </securityTitle>
            <transactionDate>
                <value>2004-03-09</value>
            </transactionDate>
            <deemedExecutionDate></deemedExecutionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>P</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>77000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>5.29</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>3705840.00</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                    <footnoteId id="F1"/>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>MLF Partners</value>
                    <footnoteId id="F1"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock, $.01 par value</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>601668.00</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>MLF Offshore</value>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
    </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. (MLF Cayman), MLF Capital Management L.P. (MLF Capital).  MLFI and Mr. Feshbach are deemed to be 10% owners of the Issuer.  These securities are owned directly by MLFP and owned indirectly by MLFI by virtue of its being the general partner of MLFP and by Mr. Feshbach by virtue of his postion as the managing member of MLFI.  Each of MLFI, Mr. Feshbach, MLF Offshore, MLF Cayman and MLF Capital disclaims beneficial ownership of the shares owned by MLFP 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>2004-03-11</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>By: /s/ Matthew L. Feshbach</signatureName>
        <signatureDate>2004-03-11</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>By: MLF Capital Management, L.P., By: /s/ Matthew L. Feshbach, its president</signatureName>
        <signatureDate>2004-03-11</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>2004-03-11</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: /s/ Matthew L. Feshbach, its president</signatureName>
        <signatureDate>2004-03-11</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>By: MLF Partners, L.P., By: MLF Investments, LLC, its general partner, By: /s/ Matthew L. Feshbach, its managing member</signatureName>
        <signatureDate>2004-03-11</signatureDate>
    </ownerSignature>
</ownershipDocument>

