Press Release

ANN ARBOR, Mich., May 8 /PRNewswire/ -- Borders, Inc. announced today that it will debut a new 24,000-square-foot store in Allen, Texas, in August at Watters Creek at Montgomery Farms, located at Highway 75 and West Bethany Drive. The store will be one of 14 concept stores that Borders will open this year nationwide. The concept store is a retail breakthrough that represents a significant enhancement over existing Borders stores. Borders concept stores bring together digital and Internet options with a fresh new look, a host of enriching in-store services, and a number of exciting features that help fulfill Borders' mission to be a headquarters for knowledge and entertainment.

"We're delighted to have signed on to open a concept store in Watters Creek at Montgomery Farms," said Vince Vizza, vice president of Real Estate for Borders Group. "Allen is only one of 14 cities in the entire nation to get a Borders concept store in 2008. With its many avid book, music and movie lovers -- together with its vibrant culture and rich history -- Allen is a wonderful community for a concept store, and we are anxious for customers to start enjoying all that the store will offer this summer."

The store will provide customers with a unique and engaging shopping experience, the new Borders concept store will offer what customers have always loved about Borders -- deep and intelligent selection, knowledgeable staff, and a comfortable, welcoming atmosphere -- plus an exciting interactive dimension that includes enriching Web-based services accessible right in the store.

Highlights of the store include:

• A Digital Center where customers can do everything from mix and make their own CDs and download books and music to publish their own books, explore their family history, and create photo books. Importantly, trained, dedicated specialists are ready to assist customers of all technical levels with any of the Digital Center's services and products.
• Special Destinations for Cooking, Wellness, Travel, Graphic Novels and Children's that feature books, DVDs and related merchandise as well as topical programming shown via 32" LCD screens. Some destinations also include computer kiosks where customers can take advantage of a number of digital and Internet options to maximize their in-Destination experiences.
• A fresh new interior with dazzling graphics that both guide customers to the Destinations as well as inspire them to shop the entire store's diverse and relevant assortment of up to 170,000 book, music and movie titles. A warm, neutral color scheme and plenty of cozy seating suggest comfort and an invitation for customers to stay as long as they like.
• Enriching and enjoyable community events featuring appearances by authors and performers as well as free activities for children that may include storytime events, summer camps, author signings and other kid- focused store events.
• A Seattle's Best Coffee(R) cafe that will serve its full line of premium coffee and non-coffee beverages, including lattes, mochas and blended beverages, and a fresh food menu, featuring pastries and sandwiches.
• A Paperchase shop with a wide selection of fashionable notebooks, journals, wrapping paper, greeting cards and other gifts and stationery items from U.K.-based Paperchase(R) Products Limited.
• Internet access available storewide. Through an alliance with T-Mobile(R), Borders stores are T-Mobile HotSpots(R), allowing customers using Wi-Fi enabled laptops or PDAs with a T-Mobile account the ability to comfortably surf the Web, access email, connect to their corporate network, or download large files all while connected to the nation's largest, carrier-owned Wi-Fi network.
• Multiple self-serve Borders Search stations offering customers the opportunity to check the availability of a particular title and where it is located within the store. After Borders' proprietary e-commerce site, Borders.com, launches this year, customers will be able to order books, music and movies right at the kiosk and have their order shipped directly to their house or to the store of their choice for pick up at a later time. In addition, the stations in each store's music department will give customers the chance to listen to a CD before purchasing it.
• "Borders Recommends" titles and reviews displayed throughout the store. In addition, knowledgeable booksellers are happy to suggest titles suited to each customer.
• The Borders Original Voices program, now in its 12th year, highlights the work of new and emerging authors and artists and helps Borders share its passion for books, music, and movies with customers from one enthusiast to another. Over the course of a year, more than 200 new works are featured in Borders stores.

Customers who shop at this store -- and at any Borders, Waldenbooks or Borders Express store -- are eligible to become Borders Rewards(R) members. Borders Rewards is the company's free loyalty program where all purchases count toward earning Borders Bucks that can be used on future purchases. Members also enjoy exclusive Borders Rewards Bonus Events and receive members- only coupons and savings opportunities throughout the year. Customers can also participate in the Borders Group Savings and Services Program, which offers discounts, deferred billing, complimentary price quotes as well as specialized customer service to businesses, schools, libraries and non-profit groups. Membership in this program is also free.

The opening of this new concept store is expected to create approximately 65 jobs in the local community. Employment opportunities at Borders in Allen will be posted online and available in July. To apply, please visit Borders at www.borders.jobs.

About Borders Group, Inc.

Borders Group, Inc. trades on the New York Stock Exchange under the symbol BGP. Headquartered in Ann Arbor, Mich., the company is a $3.8 billion global retailer of books, music, movies, and gift and stationery items. Through its subsidiaries, Borders Group has more than 30,000 employees and operates over 1,100 stores. More information on Borders Group is available at www.bordersgroupinc.com.

SOURCE Borders

CONTACT: Kolleen O'Meara, Borders, +1-734-477-1224, komeara@bordersgroupinc.com