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Non-Tech : Barnes & Noble (BKS) -- Ignore unavailable to you. Want to Upgrade?

To: LTK007 who wrote (1371)	5/24/1999 5:23:00 PM
From: Bird	Respond to of 1691

Monday May 24, 10:02 am Eastern Time biz.yahoo.com Company Press Release NCTI Subsidiary DistributedMedia.com Signs Barnes & Noble College Bookstores Sight & Sound(tm) Systems to be Deployed to 380 Stores STAMFORD, Conn.--(BUSINESS WIRE)--May 24, 1999-- DistributedMedia.com, Inc. (DMC), a wholly-owned subsidiary of NCT Group, Inc. (OTCBB: NCTI - news) announced the signing of Barnes & Noble College Bookstores, a division of Barnes & Noble, Inc., as a customer for its proprietary in-store network of Sight & Sound systems. The Sight & Sound systems will be used to deliver music programming as well as audio and billboard advertising to numerous locations within each of the 360 Barnes & Noble college bookstores. ''We are pleased with the extensive music selection and superior sound quality delivered by the Sight & Sound system and believe that customers will enjoy the enhanced ambience that music provides while they are in our stores,'' said Max Roberts, President of Barnes & Noble College Bookstores. ''And, we know that advertisers will be very eager to reach our demographic in such a targeted way. Couple that with the commitment by DMC to install and maintain the systems and you have a number of benefits we just couldn't ignore.'' Sight & Sound incorporates patented and patent pending technologies developed by NCTI to deliver a unique combination of music and advertising messages to any out-of-home location. Each Sight & Sound installation consists of four or more dual-function audio billboards and a Digital Broadcast Station to which audio advertisements are downloaded via the Internet from DMC's Central Controller. The audio speaker is flat, wall-mounted and less than two inches deep; its 18''x 24'' surface is covered with a printed, yet sound permeable, advertising billboard. The flat speakers will be supplied to DMC by NCT Audio Products, Inc., a subsidiary of NCT Group, Inc. ''Today, advertisers are trying desperately to reach the consumer who is now spending less and less time at home. There is no better way to do that than with our system. Sight & Sound enables the advertiser to reinforce a brand's proposition in an out-of-home venue with the one-two punch of visual billboard coupled with an audio advertisement played out of that billboard,'' said James McManus, President, DMC. ''We are thrilled that Barnes & Noble College Bookstores, one of the country's leading retailers, has embraced our innovative approach. The overwhelmingly positive response that we consistently receive from industry leaders solidifies our belief that Sight & Sound is the advertising paradigm for the future.'' Founded in 1873, Barnes & Noble is part of the nation's largest bookselling enterprise. Over the years, the company has established a reputation for operating the finest service-oriented campus bookstores in the nation. Barnes & Noble operates over 350 campus bookstores for many of the nation's top academic institutions, medical schools, law schools and community colleges. All campus stores are customized to meet the specific needs of their community and feature a highly professional management staff, top quality merchandise, computerized book ordering and innovative store design.

To: LTK007 who wrote (1371)	5/24/1999 6:02:00 PM
From: Glenn Petersen	Read Replies (2) \| Respond to of 1691

I have held onto my BKS shares, even though it had been my intention to sell them the day before the offering. Unless the BNBN IPO is a complete bust, we should get some sort of pop out of BKS tomorrow. In order to properly value BKS as a backdoor play, you need to break it into its two component parts, BNBN and the bricks and mortar. The bricks and mortar can be benchmarked against Borders(BGP). When you back out goodwill write offs, restructuring charges and Internet related losses for the five year period ending December 31, 1998, BKS averaged annual sales of $2,370 MM and had an average annual operating profit of $123 MM. For the comparable five year period, BGP had average annual sales of $2,016 MM and an average annual operating profit of $105 MM. For the sake of argument, lets say that the BKS bricks and mortar are worth 20% more than the BGP bricks and mortar. (I am not going to put any value on either BGP's Internet business nor BKS's announced acquisition of the Ingram distribution business.) As of today's close, BGP had a market cap of approximately $1,324.9 MM. Add 20% to that and the BKS bricks and mortar have a value of approximately $1,589.9 MM, or $23.17 per share. Based on today's close, the market is valuing BKS's BNBN interest at $8.58 per share. When you multiply $8.58 by the 68.626 million BKS shares that are currently outstanding, that gives you $589.0 MM. To get the gross valuation of BKS's interest in BNBN, divide $589.0 MM by .60 (to account for the discount associated with liquidity and tax issues). Divide the gross valuation of $982.0 MM by .411 (BKS's interest in BNBN post IPO) and you have an enterprise valuation for BNBN of $2,389.0 MM. Divide the enterprise valuation by the 140.0 MM BNBN shares that will be outstanding and you have a per share valuation of $17.06. Is BNBN going to be trading at $17 tomorrow? I don't think so. If BNBN trades at $30 per share, BKS's discounted interest will be equal to $15.09 per share. Add that to the bricks and mortar valuation of $23.17 and you have a value of $38.26. (140.MM shares multiplied by $30 multiplied by .411 multiplied by .60 divided by 68.626 MM shares = $15.09.) If BNBN trades at $25 per share, BKS's discounted interest will be equal to $12.58. Add the bricks and mortar and you have a value of $35.75. The above is JMHO. Good luck.