Barnes & Noble, Inc. Reports Comparable "Super" Store Sales Increase of 10.6 Percent.

NEW YORK--(BUSINESS WIRE)--August 21, 1997--

Company to Split Stock Two-For-One

Barnes & Noble, Inc. (NYSE: BKS), the world's largest bookseller, today reported record revenues for its second quarter ended August 2, 1997. Total revenues during the second quarter rose 18 percent to $617.7 million, up from $524.3 million a year ago. Barnes & Noble "super" store revenues increased 26 percent to $503.6 million from $399.1 million and accounted for 82 percent of total revenues during the quarter compared with 76 percent during the same period last year.

For the second quarter, Barnes & Noble stores' comparable sales rose 10.6 percent, while comparable store sales for B. Dalton were down (2.5) percent. For the first half, Barnes & Noble stores' comparable sales rose 10.0 percent and comparable store sales for B. Dalton were down (3.7) percent.

Results of operations for the second quarter improved 50 percent to a net loss of ($1.4) million as compared with the year-ago second quarter net loss of ($2.7) million. Earnings per common share improved 50 percent to a ($0.04) per share loss (based on 33.4 million shares) as compared with the year-ago ($0.08) per share loss (based on 33.0 million shares).

Operating profit grew 32 percent and 92 percent during the second quarter and first half of fiscal 1997, respectively, in comparison to the same periods last year.

Merchandise inventories increased seven percent from $682.7 million as of July 27, 1996 to $733.3 million as of August 2, 1997, while total square footage grew 18 percent quarter-over-quarter. Despite the increase in inventories, the company's borrowings under its revolving credit facility dropped 27 percent from $110.0 million as of July 27, 1996 to $80.5 million as of August 2, 1997.

During the second quarter, the company opened 14 and closed six Barnes & Noble stores. During the same period, B. Dalton closed eight stores. As of August 2, 1997 the company operated 454 Barnes & Noble stores and 559 B. Dalton stores.

The company has announced a two-for-one stock split effective for all stockholders of record as of September 2, 1997. The split will be effected by a share-for-share stock dividend. Additional share certificates will be mailed to stockholders on September 22, 1997.

Barnes & Noble stores offer an authoritative selection of more than 175,000 titles from more than 10,000 publishers with an emphasis on small, independent publishers and university presses. Barnes & Noble is the world's largest bookseller on the World Wide Web (http://www.barnesandnoble.com), and the exclusive bookseller on America Online's Marketplace (Keyword: Barnes and Noble).

The company also publishes books under the Barnes & Noble imprint for exclusive sale through its retail stores and mail-order catalogs.

This release may contain certain forward-looking statements. Factors that could cause actual results to differ materially from any forward-looking statements contained in this release can be found in the company's 1996 Annual Report. Any forward-looking statements contained in this release are expressly qualified by the cautionary statements contained in the company's 1996 Annual Report.

General financial information on Barnes & Noble, Inc. can be obtained via the Internet by visiting the company's investor relations web site at http://www.shareholder.com/bks/. -0-

                   BARNES & NOBLE, INC. AND SUBSIDIARIES
                   Consolidated Statements of Operations
               (thousands of dollars, except per share data)
                                 (unaudited)

                         13 weeks ended            26 weeks ended
                     August 2,     July 27,     August 2,   July 27,
                        1997         1996        1997        1996

Revenues             $ 617,748      524,321   1,213,479   1,033,076

Cost of sales,
 buying and
 occupancy             398,616      340,236     787,240     673,712

    Gross profit       219,132      184,085     426,239     359,364

Selling and
 administrative
 expenses              126,186      105,185     246,426     209,412
Rental expense          63,212       54,149     125,376     107,264
Depreciation and
 amortization           18,926       14,266      36,673      27,855
Pre-opening
 expenses                3,367        4,863       7,221       9,352

    Operating
     profit              7,441        5,622      10,543       5,481

Interest expense,
 net                     9,756       10,169      19,404      18,513

Benefit for income
 taxes                   (949)      (1,826)      (3,634)     (4,918)

    Net loss         $ (1,366)      (2,721)      (5,227)     (8,114)

Net loss per
 common share        $  (0.04)       (0.08)       (0.16)      (0.25)

Weighted average
 common shares
 outstanding       33,410,000   33,005,000    33,315,000  32,986,000


Percentage of
Revenues:

Revenues               100.0%       100.0%        100.0%      100.0%

Cost of sales,
 buying and
 occupancy              64.5%        64.9%         64.9%       65.2%

    Gross margin        35.5%        35.1%         35.1%       34.8%

Selling and
 administrative
 expenses               20.4%        20.1%         20.3%       20.3%
Rental expense          10.2%        10.3%         10.3%       10.4%
Depreciation and
 amortization            3.1%         2.7%          3.0%        2.7%
Pre-opening
 expenses                0.6%         0.9%          0.6%        0.9%

    Operating
     profit              1.2%         1.1%          0.9%        0.5%

Interest expense,
 net                     1.6%         1.9%          1.6%        1.8%

Benefit for income
 taxes                  (0.2)%       (0.3)%        (0.3)%      (0.5)%

    Net loss            (0.2)%       (0.5)%        (0.4)%      (0.8)%

CONTACT: Investor Contact:

Marie Toulantis

Executive Vice President, Finance

[phone] or

Elizabeth Babin

Vice President, Treasurer

[phone]

Media Contact:

Lisa Herling

V.P. Corporate Communications

[phone]