Books-A-Million, Inc. Reports Holiday Sales Increase of 7.7%; Increases Fourth Quarter Earnings Estimates.

Business Editors

BIRMINGHAM, Ala.--(BUSINESS WIRE)--Jan. 14, 2002

Books-A-Million, Inc. (Nasdaq/NM:BAMM) today announced that sales for the nine-week period ended January 5, 2002, totaled $110.2 million compared with $102.3 million during the same period in fiscal 2001, an increase of 7.7%. Comparable store sales for the Company's core book business increased 4.4% during the period, while lower comparable sales in non-book merchandise, particularly music and collectibles, resulted in a 0.5% increase for all categories combined. Due to less after-holiday discounting in January when compared with the same period of fiscal 2001, the Company expects comparable store sales for the fourth quarter ending February 2, 2002, to decrease approximately 1.0%.

For the first 11 months of fiscal 2002, sales increased 8.0% to $409.5 million from $379.1 million in the year-earlier period. Comparable store sales for the first 11 months of fiscal 2002 decreased 2.8%. Excluding the sales of collectibles, comparable store sales increased 0.4%. The final results for the year ending February 2, 2002, will be released as scheduled in mid-March.

Commenting on the results, Clyde B. Anderson, Chairman and Chief Executive Officer, said, "Our core book business has been strong during the fourth quarter, led by the excellent performance in the fiction category. The release of the film versions of Harry Potter and the Lord of the Rings during the quarter contributed to significant sales of both series of books. Other titles of note included John Grisham's Skipping Christmas, Life magazine's One Nation, and the biographies John Adams and Theodore Rex."

Due to stronger holiday sales than anticipated, the Company is raising its fourth quarter net income estimates to $0.39 to $0.43 per diluted share from $0.36 to $0.40 per diluted share, compared with actual net income of $0.27 per diluted share for the same period last year. Fiscal 2003 net income is expected to increase approximately 15% to 20%.

Books-A-Million will host a webcast in conjunction with this announcement. The call will begin at 5:00 p.m. ET today. A 30-day Internet replay of the call will also be available approximately two hours after the call ends. Visit www.booksamillioninc.com or www.companyboardroom.com for the links.

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 204 stores in 18 states and the District of Columbia. 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.

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.