Barnes & Noble, Inc. Expects to Meet Analysts' Consensus EPS Estimates for the Third Quarter.

Business Editors

NEW YORK--(BUSINESS WIRE)--Nov. 8, 2000

Barnes & Noble, Inc. (NYSE:BKS), the nation's largest bookseller, said it will meet analysts' EPS consensus estimates for the third quarter. Barnes & Noble said its third-quarter comparable bookstore sales are estimated to be 5.6 percent and bookstore earnings are expected to meet analysts' estimates.

Earnings from Video Game and Entertainment Software stores are also expected to meet analysts' estimates due to higher than plan sales of video game products more than offsetting a reduced allocation of PlayStation 2 during the quarter. Sales from new video game releases of "Legend of Zelda: Majora's Mask," "Pokemon Gold," and "Pokemon Silver," in addition to used video game product, were particularly strong during the quarter. In addition, the company continued to lead the market with the highest tie-ratio of software and accessories sales to hardware sales for PlayStation 2 with all of its initial allocation selling through during the quarter.

Comparable store sales in the third quarter from the Video Game and Entertainment Software stores are expected to be slightly below plan, down (16.8) percent as a result of lower than plan sales of PlayStation 2 due to a product shortage in the market. However, the gross margin for the segment in the third quarter was higher than plan due to greater sales of higher-margin video game products. Hardware sales produce a low gross profit as a result of gross margin being less than 5 percent.

The fully detailed third-quarter financials will be released on Thursday, November 16, 2000.

About Barnes & Noble, Inc.

Barnes & Noble, Inc. (NYSE: BKS) operates 551 Barnes & Noble and 379 B. Dalton bookstores, and, with its acquisition of Babbage's Etc. and Funco, Inc., is the nation's largest operator 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 also publishes books under its own imprints for sale through its retail stores 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/.

SAFE HARBOR 

This press release contains "forward-looking statements." Barnes & Noble is including this statement for the express purpose of availing itself of the protections of the safe harbor provided by the Private Securities Litigation Reform Act of 1995 with respect to all such forward-looking statements. These forward-looking statements are based on currently available information and represent the beliefs of the management of the company. These statements are subject to risks and uncertainties that could cause actual results to differ materially. These risks include, but are not limited to, general economic and market conditions, decreased consumer demand for the company's products, possible disruptions in the company's computer or telephone systems, possible work stoppages or increases in labor costs, possible increases in shipping rates or interruptions in shipping service, effects of competition, possible disruptions or delays in the opening of new stores or the inability to obtain suitable sites for new stores, higher than anticipated store closing or relocation costs, higher interest rates, the performance of the company's online and other initiatives, the successful integration of acquired businesses, unanticipated increases in merchandise or occupancy costs, unanticipated adverse litigation results or effects, product shortages, and other factors which may be outside of the company's control. Please refer to the company's annual, quarterly and periodic reports on file with the SEC for a more detailed discussion of these and other risks that could cause results to differ materially.