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Borders Group and Amazon.com Extend Alliance With In-Store Pick Up at Borders Stores Nationwide for Amazon.com Customers and New Waldenbooks Teamed With Amazon.com Site
ANN ARBOR, Mich./SEATTLE, Wash.--(BUSINESS WIRE)--April 23, 2002--Borders Group Inc. (NYSE:BGP - news), and Amazon.com (Nasdaq:AMZN - news) today jointly announced a multi-year agreement to provide Amazon.com's millions of customers with the option of picking up books, music CDs and DVDs at Borders Books and Music stores nationwide. A second agreement between the companies will create a new co-branded Web site, Waldenbooks teamed with Amazon.com, which follows the successful Borders teamed with Amazon.com site that has been serving customers for nine months.

Combined with a multi-year extension of the original agreement, today's announcements mark a significant broadening and deepening of the two companies' alliance.

Express In-Store Pick Up at Borders Stores

In time for holiday 2002, thousands of books, CDs and DVDs will be available for Amazon.com and Borders.com customers to order online and pick up at their convenience at one of more than 365 Borders stores throughout the U.S.

When customers view a product description page, they will have the option to complete their order online with delivery from Amazon.com or to see if the item is in-stock at their local Borders store. For each item selected, a list of up to five nearby Borders stores will be provided, based on the customer's zip code and product availability. Customers who elect the in-store pick up option will receive e-mail confirmation from Borders informing them the item has been successfully picked and reserved in their name for express in-store pick up. Items ordered online for pick up at Borders stores will be sold at the national Borders store price, or local store price if lower, with applicable local sales tax added. No shipping and handling fees will be charged and customers will have the opportunity to apply any special store discounts or offers on their orders.

Sales for items ordered online and picked up in Borders stores will be recorded by Borders Group with Amazon.com receiving a commission. Returns on these items will be accepted at Borders stores.

``This agreement is an important next step in the extremely successful alliance we've experienced with Amazon.com,'' said Borders Group Chairman, President and Chief Executive Officer Greg Josefowicz. ``Customers overwhelmingly indicate a desire for the convenience of in-store pick up and we're delighted to offer it to the world's largest online audience of book, music and movie lovers.''

``We're pleased to build on the success of our original alliance with Borders and now offer customers the option of picking up thousands of books, music and DVD products at their neighborhood Borders store,'' said Jeff Bezos, founder and CEO of Amazon.com. ``Together, we're combining the convenience of online shopping with the speed of in-store pick up at a best-of-breed Borders store.''

Waldenbooks Teamed with Amazon.com

The companies also announced an agreement to launch Waldenbooks teamed with Amazon.com prior to the 2002 holiday season. Like Borders teamed with Amazon.com, the new site will offer customers the benefits of Amazon.com's e-commerce platform, such as personalization and 1-Click(TM) ordering. The new Waldenbooks.com will strongly appeal to the more than three million members of Waldenbooks' Preferred Reader loyalty program who will be able to earn points with every purchase made through the co-branded site. In addition, boutiques on romance and science fiction genres, which are of primary interest to the Preferred Reader audience, will be featured on the site.

The multi-year agreement has terms similar to the Borders teamed with Amazon.com alliance with all sales originating through the new site recorded by Amazon.com with a percentage of sales going to Borders Group. Inventory, fulfillment and customer service will be provided by Amazon.com.

``With stores in all 50 states, Waldenbooks is the nation's largest mall book retailer and a highly recognized brand,'' Josefowicz said. ``Preferred Readers are the most loyal Waldenbooks customers who visit our stores more often and spend more when they shop. We're pleased to give them the opportunity to gain Preferred Reader points when they buy through the co-branded site and are confident they'll enjoy the special features.''

``For almost seven years, we've been working to provide customers with the easiest to use, most convenient online shopping experience, and we're pleased to now make that experience available to Waldenbooks' millions of Preferred Readers and others who can now shop at Waldenbooks.com,'' Bezos said.

About Borders Group

Borders Group, Inc., (NYSE:BGP - news) is a leading global retailer of books, music, video and other information and entertainment items with stores in the United States, United Kingdom, Australia, New Zealand, Singapore, and the commonwealth of Puerto Rico. A Fortune 500 company headquartered in Ann Arbor, Mich., Borders Group employs 32,000 worldwide and operates more than 365 Borders domestic superstores, 22 international Borders stores, 36 Books etc. locations and approximately 820 Waldenbooks stores. More detailed information for journalists is available at www.bgimediacenter.com. Financial data is hosted on www.bordersgroupinc.com. Information on Borders stores is available through www.bordersstores.com and information on how to sign up for the Waldenbooks Preferred Reader program is posted on www.preferredreader.com.

About Amazon.com

Amazon.com, a Fortune 500 company based in Seattle, Wash., opened its virtual doors on the World Wide Web in July 1995 and today offers Earth's Biggest Selection, along with online auctions and free electronic greeting cards. Amazon.com seeks to be the world's most customer-centric company, where customers can find and discover anything they might want to buy online. Amazon.com and sellers list millions of unique new and used items in categories such as electronics, computers, kitchen and housewares, books, music, DVDs, videos, camera and photo items, toys, baby and baby registry, software, computer and video games, cell phones and service, tools and hardware, travel services, magazine subscriptions and outdoor living products. Through Amazon Marketplace, zShops and Auctions, any business or individual can sell virtually anything to Amazon.com's millions of customers, and with Amazon.com Payments, sellers can accept credit card transactions, avoiding the hassles of offline payments.

Amazon.com operates four international Web sites: www.amazon.co.uk, www.amazon.de, www.amazon.fr and www.amazon.co.jp. It also operates the Internet Movie Database (www.imdb.com), the Web's comprehensive and authoritative source of information on more than 275,000 movies and entertainment titles and 1 million cast and crewmembers dating from the birth of film to 2005.

Borders Group Safe Harbor Statement

This release contains forward-looking statements within the meaning of the Private Securities Litigation and Reform Act of 1995. One can identify these forward-looking statements by use of words such as ``may,'' ``will,'' ``anticipates,'' ``plans,'' ``expects,'' and other words of similar meaning. These statements are subject to risks and uncertainties that could cause actual results and plans to differ materially from those included in the company's forward-looking statements. The forward-looking statements include future benefits and future results from this alliance. These risks and uncertainties include, but are not limited to, information systems improvements and the implementation of store operation procedures that will affect the ability of Borders Group to achieve these benefits and results. More information about factors that potentially could affect Borders Group's results is included in Borders Group's filing with the Securities and Exchange Commission, including its quarterly report on Form 10-Q for the fiscal quarter ended October 28, 2001 and all subsequent annual reports on Form 10-K and quarterly reports on Form 10-Q.

Amazon.com Safe Harbor Statement

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results may differ significantly from management's expectations. These forward-looking statements involve risks and uncertainties that include, among others, risks related to potential future losses, significant amount of indebtedness, competition, strategic alliances and business combinations, seasonality, potential fluctuations in operating results and rate of growth, foreign currency exchange rates, management of potential growth, system interruption, international expansion, consumer trends, fulfillment center optimization, inventory, limited operating history, government regulation and taxation, fraud and Amazon.com Payments, and new business areas. More information about factors that potentially could affect Amazon.com's financial results is included in Amazon.com's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2001 and all subsequent filings.


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