BOOKS-A-MILLION, INC. ANNOUNCES SECOND QUARTER REVENUES UP 19%.

BIRMINGHAM, Ala.--(BUSINESS WIRE)--Aug. 21, 1997-- Books-A-Million, Inc. (Nasdaq\NM:BAMM) today announced record revenues for the second quarter ended August 2, 1997. For the quarter, net sales increased 19% to $71.9 million from sales of $60.5 million for the year-earlier quarter. Superstore sales accounted for 87% of total retail sales for the quarter. Comparable store sales increased 2.5% for superstores and 2.3% for all stores for the second quarter of fiscal 1998. Earnings before interest, taxes and depreciation for the second quarter rose 26% to $4.7 million for the second quarter of fiscal 1998 compared with $3.8 million a year ago. Net income for the second quarter of fiscal 1998 rose to $527,000, or $.03 per share, compared with net income of $508,000, or $.03 per share, for the prior-year period.

Net sales for the first half of fiscal 1998 increased 20% to $140.1 million from $117.0 million in the first half of fiscal 1997. Earnings before interest, taxes and depreciation for the first six months of fiscal 1998 rose 16% to $9.0 million compared with $7.8 million in the prior-year period. Net income for the six months ended August 2, 1997, was $896,000, or $.05 per share, compared with net income for the first half last year of $1.5 million, or $.09 per share.

Commenting on the results, Clyde B. Anderson, President and Chief Executive Officer, said, "We were pleased that comparable store sales continued to show improvement for the quarter, reflecting strong sales in books and a broad group of other product categories. During the quarter, we opened one superstore and one combination store, and plan to open an additional 16 superstores during the second half of the year. We are looking forward to a good lineup of titles for the fall season, led by best-selling authors Stephen King, Anne Rice, Sidney Sheldon, and Danielle Steel. In addition, we note that the South is continuing to make its mark on the bestseller lists with the success of Charles Frazier's Cold Mountain, John Grisham's The Partner, Jan Karon's "Mitford" series, and the unprecedented success of John Berendt's Midnight in the Garden of Good and Evil."

Books-A-Million, Inc. is one of the dominant book retailers in the southeastern United States. The Company presently operates 155 bookstores in 17 states. The Company operates three distinct store formats, including large superstores operating under the names Books-A-Million and Books & Co., traditional bookstores and combination book and greeting card stores, both operating under the name Bookland. -0-

                           BOOKS-A-MILLION, INC.
                Unaudited Consolidated Financial Highlights
                   (In thousands, except per share data)


                                                   13 Weeks Ended
                                                August 2,   August 3,
                                                  1997        1996
Net sales                                       $  71,867   $  60,455
Earnings before interest, taxes
  and depreciation                                  4,747       3,761
Operating income                                    2,024       1,482
Interest expense, net                               1,173         663
Net income                                      $     527   $     508
Net income per share                            $    0.03   $    0.03
Weighted average number of
  shares outstanding                               17,428      17,408

                                                   26 Weeks Ended
                                                August 2,   August 3,
                                                  1997          1996
Net sales                                       $ 140,104   $ 117,044
Earnings before interest, taxes
  and depreciation                                  9,045       7,813
Operating income                                    3,630       3,470
Interest expense, net                               2,184       1,069
Net income                                      $     896   $   1,489
Net income per share                            $    0.05   $    0.09
Weighted average number of
  shares outstanding                               17,423      17,402

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

Certain of the statements set forth herein are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current intentions, assumptions and projections and are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, among other things, unanticipated increases in merchandise, salary and distribution costs, and the effects of increased competition on specific stores and the Company generally.

CONTACT: Books-A-Million, Inc., Birmingham

Sandra B. Cochran, 205/942-3737