Babbage's Etc. Makes Big Play for PlayStation 2 Launch.

Business & Entertainment Editors

GRAPEVINE, Texas--(BUSINESS WIRE)--Oct. 24, 2000

World's Largest Video Game and Entertainment Software Retailer

Readies for Launch with Customer Promotions and Game Demo Stations

Babbage's Etc., the world's largest video game and entertainment software specialty retailer, today announced several initiatives for the October 26th North American launch of the highly anticipated PlayStation(R)2 computer entertainment system.

At the stroke of midnight, hundreds of Babbage's Etc. stores will open their doors, offering special in-store promotions, demos, and events. Thousands of gamers who pre-ordered through Babbage's Etc.'s stores will be lining up at stores to get their hands on the PlayStation 2 computer entertainment system, which is designed to bring together games, music and movies. In addition, the company has undertaken extensive internal logistics planning to ensure that its supply of PlayStation 2's gets into gamers' hands on the 26th. Babbage's Etc. is a wholly owned subsidiary of Barnes & Noble, Inc. (NYSE: BKS), and has nearly 1000 stores under the Babbage's, Software Etc., GameStop and Funcoland names.

"Demand for the system is unprecedented, and we expect the launch will result in spectacular sales and inventory turnover for Babbage's Etc.," said Dan Dematteo, president of Babbage's Etc. "As the world's largest specialty retailer of video game and PC entertainment software, we have been working around the clock to prepare for the launch and ensure our customers the broadest selection of games and accessories."

A heavy in-store merchandising and media push for the system is underway. The system is featured prominently in Babbage's Etc.'s store ads, catalogs, and in gaming magazines. For the past week, consumers have been able to try out some of the hottest games for the system in several stores that feature system kiosks.

Across the U.S., select stores will open at midnight on October 25th or early on October 26th to accommodate customers who have pre-ordered the systems. In addition, gamers who registered for the system at Babbage's Etc.'s www.gamestop.com Web site will have it arrive on their doorsteps on October 26th. Babbage's Etc. conducted an extensive pre-order program on the gamestop.com site as well as in many of its stores. Employees worked closely with customers on pre-orders to educate them as to the availability of the systems. Gamers who did not pre-order enough in advance will be notified as additional systems arrive throughout the holiday season.

On the launch day, the chain will have a wide selection of PlayStation 2 games such as FantaVision(TM), published by SCEA, Tekken Tag Tournament, published and developed by Namco, and Madden NFL 2001, published and developed by EA Sports, as well as several first and third party accessories.

Babbage's Etc. has done thorough training for the new system, by educating its store personnel at a September managers meeting and delivering information and promotional materials to all of its stores. Employees will be able to help consumers pick the best games and accessories for the new system.

About PlayStation 2

Supporting both the audio CD and DVD-Video formats, the PlayStation 2 computer entertainment system leads the fusion of interactive entertainment with music and video. Since its Japanese debut on March 4th 2000, a staggering 3 million PlayStation 2 units have been shipped, making it one of the most successful electronic entertainment product launches ever.

The new system supports the existing PlayStation software catalog of more than 800 titles now on the market, bridging the generation of the two systems while protecting consumers' investment in their PlayStation software libraries. Currently 208 publishers/developers have signed license agreements and more than 270 software titles are in development worldwide. The PlayStation 2 computer entertainment system will launch in North America with a software library of more than 50 titles scheduled for release by the end of 2000.

About Babbage's Etc.

Babbage's Etc., owned by Barnes & Noble Inc. (NYSE: BKS), is the world's largest video game and PC entertainment specialty retailer, operating more than 950 stores including Babbage's(R), Software Etc.(TM), GameStop(R), and FuncoLand(R), and the e-commerce Web site -- http://www.gamestop.com, which features the world's largest selection of gaming products including video game and entertainment software. Babbage's Etc. also publishes the monthly Game Informer magazine with over 200,000 subscribers.

About Barnes & Noble, Inc.

Barnes & Noble, Inc. operates 544 Barnes & Noble and 389 B. Dalton bookstores, and Babbage's Etc., one of the nation's largest operators of video game and entertainment software stores. Barnes & Noble stores stock an authoritative selection of book titles and provide access to more than one million titles. They offer books from more than 50,000 publisher imprints with an emphasis on small, independent publishers and university presses. Barnes & Noble is one of the world's largest booksellers on the World Wide Web (http://www.bn.com), and the exclusive bookseller on America Online (Keyword: bn). Barnes & Noble.com has the largest standing inventory of any online bookseller. Barnes & Noble, Inc. also publishes books under its own imprint for exclusive sale through its retail stores, mail-order catalogs, and Web site.

General financial information on Barnes & Noble, Inc. can be obtained via the Internet by visiting the company's investor relations Web site: http://www.shareholder.com/bks/.