Barnes & Noble Chooses SupplyWorks for Nationwide Store Supply Management.

Business Editors/Hi Tech Writers

BEDFORD, Mass.--(BUSINESS WIRE)--April 2, 2001

SupplyWorks' Intranet Supply System to Lower Costs and Streamline

Supply Management for Nation's Largest Bookseller

SupplyWorks(R), Inc., the leader in supplier relationship management (SRM) solutions, today announced that Barnes & Noble, Inc. (NYSE:BKS) has chosen SupplyWorks' Web-based eProcurement solution to transform its store supply management system. Barnes & Noble will utilize SupplyWorks' eProcurement technology to shorten procurement and delivery cycles, achieve better pricing, and gain new operational visibility and financial control throughout its nationwide retail stores.

SupplyWorks will automate the store-based purchasing of goods and equipment needed to keep Barnes & Noble locations operating smoothly and cost-efficiently. In all, nearly 1000 locations will be brought online through the SupplyWorks hosted and managed system. The system will greatly enhance coordination and management between the stores, corporate headquarters and the company's suppliers. Chosen after an extensive competitive review, SupplyWorks' online system will integrate directly into Barnes & Noble's Intranet system.

"We want our booksellers to focus on what they do best -- which is selling books -- and to make operations such as online supplies procurement as straightforward and efficient as possible," said Jack Kelleher, vice president, operations at Barnes & Noble, Inc. "Whether opening a new store or supplying an existing one, the procurement system must operate flawlessly. We chose SupplyWorks as a solution we knew would work, has the right functionality as well as a team that will be responsive to our needs."

"This is 'clicks and mortar' in action for a large, well-respected and forward-looking business leader," said Jeff Herrmann, president and chief executive officer, SupplyWorks Inc. "Barnes & Noble continues to set a high standard for online initiatives that positively impact their bottom line. SupplyWorks' selection further validates our position as a leader in the supply chain eCommerce market."

Benefits of the SupplyWorks Solution

Barnes & Noble chose SupplyWorks to improve store access to supplies on a timely basis, while providing tighter management control, and improved budgeting and reporting. Primary goals of the implementation include:

-- Reduced store operations costs derived from more efficient supplies
ordering, fulfillment and payment;

-- Reduced supply costs from improved budget and management analysis; and

-- Easy access for the booksellers to a set of corporate standards for
suppliers and products.

As a hosted application, SupplyWorks will enable Barnes & Noble to see faster implementation, lower initial costs and the lowest total cost of ownership (TCO) of any comparable application available today.

About SupplyWorks

SupplyWorks, Inc. is a leading provider of business-to-business (B2B) supply chain solutions that optimize the flow of production materials and information. The Company's Web-based solutions enable organizations to significantly increase competitive advantage, enhance market reaction time and flexibility, and strengthen financial performance. SupplyWorks is headquartered in Bedford, MA, and is backed by Atlas Venture, North Bridge Venture Partners and New Meadows Capital. Information about SupplyWorks and its solutions is available on the Internet at www.supplyworks.com or by calling 781.301.7000.

About Barnes & Noble, Inc.

Barnes & Noble, Inc. (NYSE: BKS) operates 569 Barnes & Noble and 339 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 imprint for exclusive sale through its retail stores and Web site.

General information on Barnes & Noble, Inc. can be obtained via the Internet by visiting the company's corporate Web site: www.barnesandnobleinc.com.