Dean & Deluca Opens Its First Borders Books & Music Cafe; Dean & Deluca to own and operate cafes in new Borders Manhattan stores opening in 2003

Business Wire, June 16, 2003

Business Editors

NEW YORK--(BUSINESS WIRE)--June 16, 2003

Dean & Deluca opened its first cafe located within a Borders Books & Music store last Tuesday evening at a preview party held at the new Borders site at 100 Broadway between Wall and Pine Street. The gala, which attracted over 800 of New York's literary and culinary set, marked the beginning of a relationship between Dean & Deluca and Borders that will include the opening of another Dean & Deluca cafe in the Borders location scheduled to open this fall at the new 2.1 million-square-foot AOL Time Warner Center on Manhattan's West Side at Columbus Circle. Dean & Deluca will also sell its branded products in kiosks located in over 120 Borders stores.

"This is a natural fit," said Dane J. Neller, Dean & Deluca's President and CEO. "Both companies are passionate about offering superior products, service and merchandizing, and we are excited to be part of Borders' New York expansion."

"With the addition of Dean & Deluca, New York's premier food emporium, operating the cafe, our customers will be able to experience, rich, distinctive coffees, fresh breads, pastries, sandwiches, and other gourmet foods and gift items," said Tami Heim, president of Borders.

Dean & Deluca, founded in 1977 by Joel Dean, Giorgio Deluca and Jack Ceglic with the opening of its flagship store in SoHo New York, helped inspire a new culinary movement in America through the introduction of specialty foods from around the globe. It quickly grew into a multi-channel retailer of gourmet and specialty foods, premium wines and high-end kitchenware with operations throughout the United States and abroad. Dean & Deluca stores and cafes feature a European style marketplace environment with displays of the finest in gourmet prepared foods, high-end produce, charcuterie, cheese, baked goods, coffee and imported goods. Dean & Deluca also sells an extensive line of products bearing its name, including as coffees, teas, oils, vinegars, spices, candies, pasta sauces and chocolates. Exacting standards govern the selection of every Dean & Deluca specialty item as experts from each food category carefully select products from around the world based on taste, quality, and uniqueness.

Borders is an industry leader in selection, customer service and convenience. Borders stores offer up to 200,000 book, music, DVD and periodical titles, as well as cutting-edge service technology through Title Sleuth(TM), self-service computer stations located throughout the store. Title Sleuth allows Borders customers to easily determine if a particular book CD or movie is in stock at the store they are visiting or at a nearby Borders location and offers access to more than 15 million used, out-of-print and hard-to-find titles worldwide. For Borders.com and Amazon.com shoppers, "In-Store Express Pick Up" service combines the ease of ordering online with the convenience of paying for their purchase and pick up the same day.

About Dean & Deluca

Dean & Deluca is a specialty retailer of gourmet foods, premium wines and high-end kitchenware with fourteen retail stores and cafes in select U.S. markets, a consumer and corporate gift catalogue, and an e-commerce site, www.deandeluca.com. Dean & Deluca also markets its private label products to other retailers and wholesalers throughout the world. New store openings in 2003 include a food emporium at Madison Avenue and 85th Street, two cafes at Borders' 100 Broadway and AOL Time Warner Center locations, and a flagship market in Tokyo through a licensing agreement with Itochu Corporation.

About Borders Group

Borders Group 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 over 410 Borders domestic superstores, 34 international Borders stores, 37 Books etc. locations and approximately 710 Waldenbooks stores. Teamed with Amazon.com, the company also offers online shopping through Borders.com (www.borders.com) and Waldenbooks.com (www.waldenbooks.com). More detailed information on the company is available at www.bordersgroupinc.com. Information on Borders stores is available through www.bordersstores.com.