BOOKS-A-MILLION REPORTS FISCAL 1997 RESULTS; Revenues Up 21% To A Record $278.6 Million.

BIRMINGHAM, Ala.--(BUSINESS WIRE)--March 21, 1997--

25 New Superstores Opened For The Year

Books-A-Million, Inc. (Nasdaq/NM:BAMM) today announced financial results for the fourth quarter and fiscal year ended February 1, 1997. Net sales for the fourth quarter of fiscal 1997 increased 14% to a record $97.1 million from $85.0 million in the year-earlier period. Excluding the 53rd week in fiscal 1996, net sales for the fourth quarter increased 19% in fiscal 1997. Earnings before interest, taxes and depreciation for the fourth quarter decreased 13% to $10.5 million from $12.0 million in the year-earlier period. Net income for the final three months of fiscal 1997 was $4.3 million, or $0.25 per share, compared with $6.1 million, or $0.35 per share, in the year-earlier period.

Net sales for all of fiscal 1997 increased 21% to $278.6 million from $229.8 million in fiscal 1996. Excluding the 53rd week in fiscal 1996, net sales increased 23% for all of fiscal 1997. Earnings before interest, taxes and depreciation for fiscal 1997 decreased 2% to $21.7 million from $22.1 million, before restructuring charge, in the year-earlier period. Net income for fiscal 1997 was $5.8 million, or $0.33 per share, compared with fiscal 1996 net income of $7.5 million, or $0.43 per share. Fiscal 1996 net income includes a one-time store-closing charge of $1.8 million, or $0.11 per share.

Commenting on the results, Clyde B. Anderson, President and Chief Executive Officer, said, "We are pleased that 25 new superstores opened as scheduled in 1997; however, the year-long effects of increased competition and a shortened holiday selling season resulted in lower comparable store sales. For the fourth quarter of fiscal 1997, comparable store sales declined 0.7% for superstores and 1.2% for all stores. Superstores accounted for 85% of retail sales.

"In spite of a very difficult year in fiscal 1997, we enter fiscal 1998 with a number of major strengths. We are the value leader in the marketplace and have the financial resources to support continued expansion. Over 71% of our superstores are less than three years old and are still maturing. We plan to continue to aggressively open new superstores in fiscal 1998 and to build customer loyalty by offering the best value, selection and service."

Books-A-Million, Inc. is one of the dominant book retailers in the southeastern United States. The Company presently operates 151 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.

Certain of the statements set forth above are forward-looking statements within the meaning of the Securities Exchange Act of 1934. Such statements are based upon management's estimates, 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 the level of competition, salary costs, merchandise costs, distribution costs or interest expense. -0-

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

                                              Fourth Quarter Ended
                                            February 1, February 3,
                                               1997          1996
Net sales                                    $  97,064     $ 84,991
Earnings before interest,
  taxes and depreciation                        10,485       12,049

Operating income                                 7,820        9,879
Net income                                   $   4,282     $  6,079
Net income per share                         $    0.25     $   0.35
Weighted average number of
  shares outstanding                            17,409       17,387

                                                Fiscal Year Ended
                                            February 1, February 3,
                                               1997          1996
Net sales                                   $ 278,613     $ 229,801
Earnings before interest, taxes and
 depreciation
  (before store closing charge)                21,708        22,118
Operating income (before store
  closing charge)                              12,168        15,285
Net income                                  $   5,792      $  7,476
Net income per share                        $    0.33      $   0.43

Net income (excluding store closing charge) $   5,792      $  9,301
Net income per share (excluding
  store closing charge)                     $    0.33      $   0.54

Weighted average number of
  shares outstanding                           17,405        17,371

CONTACT: Books-A-Million Inc., Birmingham

Sandra B. Cochran, 205/942-3737