Division Highlights: Booksamillion.com

Our Internet efforts started the year strong and finished stronger. Booksamillion.com is, not surprisingly, the fastest growing division in the company. We made significant improvements to our site throughout the year to enhance our customer's experience. Among the features we added were electronic and paper gift certificates, an improved customer "wallet", expanded gift options, improved searching capabilities and an innovative business-to-business functionality. Our emphasis on customer service remains core to our philosophy and we invested in people and technology to insure we continue to lead in this area. Behind the scenes we vastly improved our reporting tools, our customer service interface, and our site management capabilities. We are planning for continued aggressive growth in both sales and customers at Booksamillion.com and are committed to remaining competitive in this very competitive arena.