Books-A-Million, Inc. Reports Fourth Quarter Results.

Business Editors

BIRMINGHAM, Ala.--(BUSINESS WIRE)--March 22, 2001

Books-A-Million, Inc. (Nasdaq/NM:BAMM) today announced financial results for the fourth quarter and fiscal year ended February 3, 2001. Net sales for the 14-week period increased 2.8% to $141.7 million compared with $137.9 million in the 13-week period ended January 29, 2000. Comparable store sales decreased 8.4% when compared with the same 13-week period of fiscal 2000. Excluding the sales of Pokemon collectibles, comparable stores sales decreased 1.4%. Earnings before interest, taxes and depreciation for the fourth quarter decreased 16.3% to $12.6 million from $15.1 million in the year-earlier period. Net income for the fourth quarter of fiscal 2001 was $4.8 million, or $0.27 per diluted share, compared with net income of $6.5 million, or $0.36 per diluted share, in the year-earlier period.

For the 53-week period ended February 3, 2001, net sales increased 3.6% to $418.6 million from sales of $404.1 million for the 52-week period ended January 29, 2000. Comparable store sales decreased 2.9% when compared with the same 52-week period of fiscal 2000. Earnings before interest, taxes and depreciation for the year decreased 11.2% to $24.5 million compared with $27.6 million for the same period of fiscal 2000. The Company reported net income of $3.1 million, or $0.17 per diluted share for fiscal 2001, compared with net income of $5.9 million, or $0.33 per diluted share for fiscal 2000.

"Several factors had an impact on our fourth quarter results, including a difficult retail environment and the continued softness in our collectors category," said, Clyde B. Anderson, Chairman and Chief Executive Officer. "We are encouraged, however, by the performance of our core book business, which posted solid results despite comparing with strong millennium product sales during the period last year. Operationally, the Company responded well to the decline in sales and did an exceptional job of controlling selling, general and administrative expenses.

"Booksamillion.com concluded a successful year," Anderson continued. "Sales exceeded our internal projections and the margin continues to improve. In addition, NetCentral, Inc., our web development company, completed development of our web-based, in-store customer service system, which now is operational in all Books-A-Million locations."

Anderson added, "The integration of the recently acquired Crown Books stores has begun smoothly. Our customers and associates alike are excited that Books-A-Million will continue serving booklovers in Washington, D.C. and Chicago. In addition to the 18 Crown stores, we plan to open five new Books-A-Million stores and eight new Joe Muggs Newsstands in fiscal 2002. Fiscal 2002 earnings per diluted share are projected to improve approximately 30% versus last year's earnings of $0.17 per diluted share. We project a net loss in the range of $0.02 to $0.00 per diluted share for the first quarter of fiscal 2002 versus net income $0.03 per diluted share for the prior-year first quarter. The projected net loss in the first quarter is primarily due to the difficult Pokemon comparisons from the prior year."

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 202 stores in 18 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. The Company's wholesale operations include American Wholesale Book Company and Book$mart, both based in Florence, Alabama. NetCentral, Inc., an Internet development and service company is located in Nashville, Tennessee. For more information, visit the company's website at www.booksamillioninc.com.

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

                                              Fourth Quarter Ended
                                            February 3,    January 29,
                                               2001           2000
Net sales                                    $141,745       $137,890
Earnings before interest, taxes
 and depreciation                              12,628         15,096
Operating income                                8,909         11,400
Net income                                   $  4,800       $  6,537
                                             ========       ========
Earnings per share - basic and diluted       $   0.27       $   0.36
                                             ========       ========
Weighted average number of shares outstanding:
   Basic                                       17,807         17,998
   Diluted                                     17,860         18,212
                                             ========       ========

                                                 Fiscal Year Ended
                                            February 3,    January 29,
                                               2001           2000
Net sales                                    $418,606       $404,057
Earnings before interest, taxes
 and depreciation                              24,542         27,624
Operating income                                9,749         13,794
Net income                                   $  3,066       $  5,942
                                             ========       ========
Earnings per share - basic and diluted       $   0.17       $   0.33
                                             ========       ========
Weighted average number of shares outstanding:
   Basic                                       17,955         17,981
   Diluted                                     17,991         18,250
                                             ========       ========


                         BOOKS-A-MILLION, INC.
                   Consolidated Statements of Income
                 (In thousands, except per share data)

                            14 Weeks   13 Weeks   53 Weeks   52 Weeks
                             Ended      Ended      Ended       Ended
                             Feb. 3,   Jan. 29,    Feb. 3,    Jan. 29,
                              2001       2000       2001        2000
NET SALES                   $141,745   $137,890   $418,606   $404,057
Cost of sales (including
 warehouse, distribution
 and store occupancy costs   103,815     97,951    309,397    296,316
                            --------   --------   --------   --------
GROSS PROFIT                  37,930     39,939    109,209    107,741
Operating, selling and
 administrative expenses      25,302     24,843     84,667     80,117
                            --------   --------   --------   --------
EBITDA                        12,628     15,096     24,542     27,624
Depreciation and
 amortization                  3,719      3,696     14,793     13,830
                            --------   --------   --------   --------
OPERATING INCOME               8,909     11,400      9,749     13,794
Interest expense, net          1,167        857      4,804      4,211
                            --------   --------   --------   --------
INCOME BEFORE INCOME TAXES     7,742     10,543      4,945      9,583
Income taxes                   2,942      4,006      1,879      3,641
                            --------   --------   --------   --------
NET INCOME                  $  4,800   $  6,537   $  3,066   $  5,942
                            ========   ========   ========   ========
Net income per share
 -- basic and diluted       $   0.27   $   0.36   $   0.17   $   0.33
                            ========   ========   ========   ========
Weighted average shares
 outstanding:
   Basic                      17,807     17,998     17,955     17,981
   Diluted                    17,860     18,212     17,991     18,250
                            ========   ========   ========   ========

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 the Internet and the Company's Internet initiative. 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.