BIRMINGHAM, Ala. (October 25, 2002) -- Books-A-Million, Inc. (Nasdaq/NM:BAMM) today announced that it is lowering financial guidance for the third quarter ending November 2, 2002. The Company has revised expectations for the third quarter to reflect softer-than-expected overall sales during the quarter, particularly in non-book categories. Specifically, magazines and gifts have seen significant decreases compared with strong sales of products related to September 11 during the same period last year.

As a result, the Company expects to report a net loss in the range of $0.16 to $0.14 per diluted share for the third quarter of fiscal 2003 versus last year’s loss of $0.11 per diluted share. Previous guidance indicated the third quarter loss would be in the range of $0.11 to $0.09 per diluted share. Based on the anticipation of continued weakness in consumer demand, the Company also expects fourth quarter earnings to be lower than previously issued guidance. Since the Company is unable to quantify the impact at this time, no revised guidance is being provided.

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 209 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.