BN.com and Barnes & Noble, Inc. Acquire Majority Stake in Enews

Posted on April 6, 2001

Barnes & Noble.com announced that it has increased its investment in Enews, a retailer of magazine subscriptions on the Internet, and together with a new investment by Barnes & Noble, Inc., the booksellers now a hold a majority interest in the company. Enews is a destination for subscriptions to more 100,000 consumer and specialty magazines, newsletters and newspapers. In addition to selling directly through its website, Enews has powered the Barnes & Noble.com magazine store on an exclusive basis since March 1998.

``Our majority interest in enews provides Barnes & Noble with a powerful marketing and e-commerce platform,'' said Steve Riggio, vice chairman of Barnes & Noble.com. ``We intend to create a variety of exciting new marketing opportunities for magazine publishers as the Barnes & Noble network of retail stores and website represents an unequalled opportunity for them to reach a prime demographic audience of upscale and educated shoppers.''

``With strong financial and strategic support from the Barnes & Noble family of companies, we can expand our ability to innovate and serve our publishers, customers and marketing partners,'' said Brian Hecht, chief executive officer and president of Enews. ``Our expanded relationship with them gives us the opportunity to serve a new segment of the Barnes & Noble customer base, the most desirable retail demographic in the country.''

The terms of the enews transaction were not disclosed. Barnes & Noble.com has held a stake in enews since December 1999. A number of the original investors in Enews will retain a minimal stake in the company. Enews will retain its strategic relationships with major magazine publishers, marketing partners and its network of more than 85,000 affiliates, and the Enews website will continue to serve customers. Enews recently announced a 50% reduction in its workforce (65 people) in February, 2001.