Barnes & Noble, Inc. Reports:.

    Business Editors

      NEW YORK--(BUSINESS WIRE)--Feb. 22, 2001--

       Record "Super" Store Sales of $3.2 Billion for Year 2000,
                   a 12.3 Percent Increase from 1999

         52-Week Comparable "Super" Store Sales Up 4.9 Percent

       January 2001 Comparable "Super" Store Sales Up More Than
                               5 Percent

          61 Percent Consolidated EPS Growth Expected in 2001

      Barnes & Noble, Inc. (NYSE:BKS), the nation's largest bookseller,
today reported "super" store sales for the 53-week period ended
February 3, 2001 of $3,169.6 million, an increase of 12.3 percent over
last year. Comparable "super" store sales based upon a 52-week sales
period increased 4.9 percent while comparable "super" store sales for
the fourth quarter (adjusted for the 53rd week) increased 2.1 percent.
      B. Dalton sales for fiscal year 2000 of $372.2 million decreased
$53.8 million (12.6 percent) from the prior year primarily due to the
closing of 61 stores. Comparable sales decreased 1.7 percent for the
same period.
      Babbage's reported sales of $757.6 million for the fiscal year, an
increase of 37 percent. Comparable store sales for the period
decreased 6.7 percent.
      Barnes & Noble.com reported record fiscal 2000 sales of $320
million, up 65 percent over the prior year.
      January sales trends were particularly strong with comparable
"super" store sale increases of 5.2 percent.
      Based on the positive sales results, the company expects to report
retail earnings per share for fiscal 2000 of $1.69 (prior to a
one-time charge), utilizing a 64.3 million basic share count. On a
consolidated basis, including the company's share of pro-forma losses
at Barnes & Noble.com and other investments, earnings for fiscal 2000
are expected to be $1.06 (prior to a one-time charge).
      The company will be taking a non-cash, after-tax charge of
approximately $92.4 million (or $1.44 per share) due primarily to the
impairment of goodwill and selected assets at B. Dalton, including
under-performing B. Dalton stores. As a result of this charge, the EPS
calculation will be based upon a basic share count of 64.3 million
shares.
      The company projects retail earnings-per-share growth for fiscal
2001 of over 30 percent (excluding the one-time charge in 2000),
consisting of $2.12 for Barnes & Noble Booksellers and $0.10 for
Babbage's.
      On a consolidated basis, including the company's share of
pro-forma losses at Barnes & Noble.com and other investments, earnings
for fiscal 2001 are expected to be $1.71 per share, an increase of
over 60 percent as compared to estimates for fiscal 2000 (prior to the
one-time charge). Quarterly guidance for fiscal 2001 will be issued on
or about March 22, 2001 when the company releases its audited results
for the fiscal year ended February 3, 2001.
      "Our 'super' store comparable sales for January were strong again,
a continuation of the trends we experienced in the first nine months
of fiscal year 2000. We believe the somewhat weakened holiday sales
are behind us and may have been an aberration due to factors
previously discussed," said Leonard Riggio, chairman and chief
executive officer of Barnes & Noble, Inc.
      "Therefore, we are very optimistic as we begin 2001. Our core
'super' store business is again our leading story; Babbage's is now
poised to capitalize on the arrival of three great new platforms; and
Barnes & Noble.com is beginning to show a rapid decline in its losses
and is making progress towards profitability."
      Mr. Riggio continued, "The bottom line is that our consolidated
EPS is expected to grow by over 60 percent, our EBITDA and cash flows
remain strong, and our 'super' stores continue to outpace both the
bookselling industry and most of the entire retail sector."
      A conference call with Barnes & Noble, Inc.'s management will be
simulcast on the Web at (www.streetfusion.com) beginning at 11 A.M.
EST on Thursday, February 22, 2001, and is accessible at
(http://www.barnesandnobleinc.com/financials), where it will be
archived until March 12, 2001.

    About Barnes & Noble, Inc.

      Barnes & Noble, Inc. (NYSE: BKS) operates 559 Barnes & Noble and
378 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 corporate Web
site: http://www.barnesandnobleinc.com/financials.

    SAFE HARBOR

      This press release (including the attached schedule) 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. -0- *T
Barnes & Noble, Inc. Discussion of 2001 Guidance vs. 2000 Projection
($ in millions, except per share amounts)

                                  2001          2000       Variance
                                 Guidance     Projection      %
                                ------------------     ------------------
----------------

BARNES & NOBLE RETAIL OPERATIONS

Barnes & Noble Booksellers
Sales                            $ 3,780       $ 3,552        6.4%

EPS                                 2.12          1.85       14.6%


Babbage's Etc.
Sales                              1,212           757       60.1%

EPS                                 0.10         (0.16)     162.5%


RETAIL EPS                          2.22          1.69       31.4%

INVESTING ACTIVITIES

  Share of pro-forma net losses
   of Barnes&Noble.com(1)          (0.44)        (0.55)
  Share of net losses from
   other investments               (0.07)        (0.08)

CONSOLIDATED EPS BEFORE IMPAIRMENT
 CHARGE                             1.71          1.06       61.3%

OTHER ADJUSTMENTS
       Impairment Charge              -          (1.44)


CONSOLIDATED EPS                  $ 1.71       $ (0.38)


Weighted average shares
 outstanding                      66,000        64,341


      (1) Pro-forma results are presented for informational purposes
only and are not prepared in accordance with generally accepted
accounting principles. Such results present the net loss of
barnesandnoble.com inc., excluding charges related to impairment and
special charges, stock-based compensation, and acquisition and
investment-related costs, including amortization of intangibles and
equity in net loss of equity investments.
*T

    --30--jgm/ny*

    CONTACTS: Barnes & Noble, Inc.
              Media Contact:
              Mary Ellen Keating,  212/633-3323
              Senior Vice President, Corporate Communications
              Investor Contact:
              Maureen O'Connell, 212/633-3338
              Chief Financial Officer

    KEYWORD: NEW YORK
    INDUSTRY KEYWORD: ENTERTAINMENT MUSIC PUBLISHING RETAIL EARNINGS