Books-A-Million, Inc. Announces 4.9% Increase in Comparable Store Sales for First Quarter; Earnings Improve Significantly Over Prior Year.

BIRMINGHAM, Ala.--(BUSINESS WIRE)--May 18, 1999--

Books-A-Million, Inc. (Nasdaq/NM:BAMM) today announced financial results for the first quarter ended May 1, 1999. Net sales for the first quarter of fiscal 2000 increased 14.3% to $85.1 million from $74.5 million in the year-earlier period. Comparable store sales for the quarter increased 4.9%. Earnings before interest, taxes and depreciation for the first quarter increased 13.6% to $4.9 million from $4.3 million in the year-earlier period. The Company reported net income for the quarter of $310,000, or $0.02 per diluted share, compared with $10,000, or $0.00 per diluted share, in the year-earlier period.

Commenting on the results, Clyde B. Anderson, President and Chief Executive Officer, said, "We are pleased with the increase in comparable store sales for the quarter. These results build upon the trend that began in the fourth quarter of last fiscal year. We believe that our focus on the fundamentals of our retail business is paying dividends in the form of increased store sales and profits.

"We continue to be committed to our e-commerce initiative," Anderson continued, "During the first quarter we launched Joemuggs.com, featuring gourmet coffee and cafe related gift items, and expanded magazine and gift departments. We are moving forward to further expand our product offerings, strengthen our distribution capabilities, enhance our customer service and build our brand."

Books-A-Million is one of the nation's leading book retailers and sells on the Internet at www.booksamillion.com. The company presently operates 177 stores in 17 states. The Company operates four distinct store formats, including large superstores operating under the names Books-A-Million and Books & Co., traditional bookstores and combination book and greeting card stores, both operating under the name Bookland, and Joe Muggs Newsstands. -0-

                         BOOKS-A-MILLION, INC.
              Unaudited Consolidated Financial Highlights
                 (In thousands, except per share data)

                                                Thirteen Weeks Ended
                                                ---------------------
                                                 May 1,        May 2,
                                                  1999          1998
                                                -------       -------
Net sales                                       $85,127       $74,469
Earnings before interest,
  taxes and depreciation                          4,859         4,278
Operating income                                  1,517         1,135
Interest expense, net                             1,017         1,119
Net income                                      $   310       $    10
                                                =======       =======
Earnings per share - diluted                    $   .02       $   .00
                                                =======       =======
Weighted average number of
 shares outstanding - diluted                    18,318        17,459
                                                =======       =======

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995:

This document contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties. A number of factors could cause actual results, performance, achievements of the Company, or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These factors include, but are not limited to, the competitive environment in the book retail industry in general and in the Company's specific market area; inflation; economic conditions in general and in the Company's specific market areas; the number of store openings and closings; the profitability of certain product lines, capital expenditures and future liquidity; liability and other claims asserted against the Company; uncertainties related to Year 2000 issues; and other factors referenced herein. In addition, such forward-looking statements are necessarily dependent upon assumptions, estimates and dates that may be incorrect or imprecise and involve known and unknown risks, uncertainties and other factors. Accordingly, any forward-looking statements included herein do not purport to be predictions of future events or circumstances and may not be realized. Given these uncertainties, shareholders and prospective investors are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligations to update any such factors or to publicly announce the results of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.