Barnes & Noble Reports October Sales; Book Sales Weaker Than Expected; Video Game Sales On Target; Earnings Guidance Updated.

Business Editors

NEW YORK--(BUSINESS WIRE)--Nov. 8, 2001

Barnes & Noble, Inc. (NYSE:BKS), the nation's largest bookseller, today reported comparable "super" store sales for October decreased (0.4) percent from the prior year. For the quarter, comparable "super" store sales increased 0.2 percent. Although comparable sales for Barnes & Noble stores were in the low range of previously revised guidance, new stores and non-comparable stores opened last year were well below plan. Comparable store sales at B. Dalton, which comprises 8.0 percent of total bookstore sales, decreased (5.1) percent for the quarter, also below plan and guidance, as were the Barnes & Noble mall stores.

Video game comparable store sales for October were on target, decreasing as expected (19.7) percent from the prior year when PlayStation 2 was launched. Comparable store sales for the quarter were also on target, increasing 3.6 percent.

Although Barnes & Noble is performing better than most retailers, events connected to the war on terrorism are affecting sales. As an example, on Halloween day, which is normally one of the strongest days of the third quarter, sales for company bookstores were down between (2.0) and (20.0) percent depending on their proximity to malls, owing to renewed warnings about terrorist threats.

Earnings for the company's retail book business are now expected to be $0.10 to $0.12 less than previous guidance for the third quarter, going from an expected $0.18 per share to $0.06 to $0.08 per share. Video game earnings will be on target with previous guidance at $0.01 per share for the third quarter.

Should current trends continue, comparable "super" store sales for the fourth quarter would be flat to plus 2.0 percent. Guidance for bookstore earnings for the fourth quarter, therefore, is being reduced to $1.04 to $1.08 (based upon 79.9 million fully diluted shares) and $1.49 to $1.53 for the full year. Guidance for consolidated EPS for the full year has been reduced to $1.08 to $1.12 compared to $1.06 for the prior year. Results for Barnes & Noble.com continue to improve as planned, and GameStop is expected to meet previous guidance.

"Given the conditions of the economy, we are encouraged by our ability to outperform the retail sector," said Leonard Riggio, chairman and chief executive officer of Barnes & Noble, Inc. "We expect to continue to benefit from the counter cyclical nature of the book business, yet recognize that even our business will be somewhat affected. Problematic is the lack of media exposure for authors amid the din of crisis coverage."

The company expects to report third-quarter results on Thursday, November 29, 2001.

About Barnes & Noble, Inc.

Barnes & Noble, Inc. (NYSE: BKS) operates 569 Barnes & Noble and 331 B. Dalton bookstores, and GameStop (formerly Babbage's), which is the nation's largest operator of video game and entertainment software stores with 990 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 premiere bookseller on America Online's (Keyword: bn) proprietary network. 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 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 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.