Barnes & Noble Announces Strategic Investment Made by Liberty Media

Barnes & Noble, Inc.

today announced that Liberty Media has invested an aggregate of $204 million in the Company through the purchase of newly issued convertible preferred stock. Under the terms of the strategic investment, Liberty purchased preferred stock, convertible into approximately 12 million shares or 16.6% (after giving effect to the issuance) of the Company's common stock at a price of $17 per share, and with a dividend rate of 7.75% per annum to be paid quarterly. The investment, which was approved by Barnes & Noble's board of directors following a recommendation made by its Special Committee, closed today. In light of Liberty's investment, the parties have ceased discussions regarding Liberty's previously announced acquisition proposal.