NuvoMedia Closes $16.9 Million Third-Round of Funding; Cisco Systems among Leading Investors

Company also Names New Member to Board of Directors

MOUNTAIN VIEW, Calif. - (9/8/99) — NuvoMedia™, makers of the Rocket eBook™, today announced completion of its third round of financing, raising a total of $16.9 million. Cisco Systems, Compass Technology Partners and private investors comprise the list of new investors supporting NuvoMedia and the award-winning Rocket eBook. They join venture capital firm Mayfield Fund and corporate investor Barnes & Noble, Inc., which are returning for the latest round of funding. As part of the announcement, NuvoMedia also named Marc Turtletaub, a private investor and co-founder and former CEO of The Money Store, as a new member of NuvoMedia’s Board of Directors.

“Cisco Systems, Mayfield Fund and Barnes & Noble are synonymous with excellence in their given industries," commented Martin F. Eberhard, cofounder and CEO of NuvoMedia. "The significant investments made by these companies in NuvoMedia will help us to continue delivering on the promise of eBooks, while ensuring our corporate success into the future.”

“Innovative products like the Rocket eBook show how the Internet is changing nearly every aspect of how people live,” said Robba Benjamin, vice president and general manager of Cisco Systems’ Consumer Line of Business. “With an eBook and an always-on Internet connection from home, consumers will have unparalleled flexibility in how they access literature.”

“Barnes & Noble is dedicated to cultivating and delivering products that provide its customers with the best reading experience possible,” noted Steve Riggio, vice chairman of Barnes and Noble, Inc. “We are proud to continue to support NuvoMedia and the Rocket eBook in this round of funding, helping the company deliver on the promise of electronic books.”

"With over 1,200 RocketEditions available at bn.com we expect to see rapid adoption of ebooks by consumers, and are delighted with the progress NuvoMedia has made since our initial investment," said Yogan Dalal, General Partner of Mayfield Fund.

About NuvoMedia, Inc.

Headquartered in Mountain View, California, with offices in New York, New York and located on the Web at www.nuvomedia.com, NuvoMedia is dedicated to becoming the electronic book distribution solution by providing a network infrastructure for publishers, retailers and end users to publish, distribute, purchase and read electronic content securely and efficiently over the World Wide Web.

About Barnes & Noble, Inc.

Barnes & Noble, Inc. (NYSE: BKS) operates 521 Barnes & Noble and 448 B. Dalton bookstores. Barnes & Noble stores stock an authoritative selection of book titles and provide access to more than one million titles. They offer books from more than 50,000 publisher imprints with an emphasis on small, independent publishers and university presses. Barnes & Noble is one of the world's largest booksellers on the World Wide Web (http://www.bn.com), and the exclusive bookseller on America Online (Keyword: bn). barnesandnoble.com has the largest standing inventory of any online bookseller. Barnes & Noble also publishes books under its own imprint for exclusive sale through its retail stores, mail-order catalogs, and Web site.General financial information on Barnes & Noble, Inc. can be obtained via the Internet by visiting the company's investor relations Web site: http://www.shareholder.com/bks/.

About Cisco Systems

Cisco Systems (Nasdaq:CSCO) is the worldwide leader in networking for the Internet.

About Mayfield Fund

Mayfield Fund is a private venture capital partnership based in Menlo Park, California. Since Mayfield’s founding in 1969, the firm has invested in more than 300 companies and has taken approximately 80 companies public. Today, these Mayfield-backed companies represent an aggregate market value of more than $100 billion. Mayfield’s portfolio companies include: Advent Software; Aspect Telecommunications; BroadVision, Inc.; Calico Technologies; Citrix Systems; Concur Technologies; LSI Logic; Genentech, Inc.; Legato Systems, Inc.; Linear Technologies, Corp.; Millennium Pharmaceuticals; NuvoMedia, Quantum Corp.; 3COM Corp; The Vantive Corp. Teralogic, Tibco and Whistle Communications.