Borders Books & Music Stores Roll Out T-Mobile HotSpot Wireless Broadband Service in 330 Stores; Borders Stores in Indiana Now Offer Wireless Broadband Internet Service

Business Wire, Sept 4, 2003

Business Editors/High-Tech Writers

ANN ARBOR, Mich.--(BUSINESS WIRE)--Sept. 4, 2003

Borders Group, allied with T-Mobile USA, Inc., continues to install T-Mobile(R) HotSpot service at Borders Books & Music(R) locations, now offering customers Wi-Fi (802.11b) high-speed wireless broadband Internet service in the Bloomington, Carmel, Fort Wayne, Highland, Indianapolis and Mishawaka stores in the state of Indiana. More than 330 stores across the country are now Wi-Fi enabled with plans to outfit nearly all of the 420 Borders Books & Music stores in time for the holiday shopping season.

Knowing that a large percentage of users are cafe customers, T-Mobile worked with Borders to design and distribute free 24-hour day passes for T-Mobile HotSpot service in the form of coffee cup sleeves. The promotional sleeves are now distributed in all Wi-Fi enabled Borders stores, and have successfully converted Cafe Borders customers to Wi-Fi users by offering them a unique password to use the service free for 24 hours in exchange for buying a cup of coffee.

"Our relationship with T-Mobile gives Borders customers a relaxing place where they can access a world of information without time or comfort constraints," says Tami Heim, president of Borders. "We're working with T-Mobile to develop unique ways to encourage shoppers in Wi-Fi enabled Borders stores to use the service, which is experiencing steady growth."

"Since launching the T-Mobile HotSpot service last year, Borders has been an enthusiastic partner and through the recent coffee sleeve promotion we've literally put access to our service in the hands of every Borders cafe customer," said Joe Sims, vice president and general manager of T-Mobile HotSpot.

"We've found once someone's been introduced to the world of Wi-Fi, they are loyal fans and repeat users."

T-Mobile HotSpot service allows customers with a wireless-enabled laptop or PDA to access the Internet or intranets at super-fast speeds at more than 2,700 convenient public locations they already go, such as Borders stores, airports and the clubs and lounges of American Airlines, Delta Air Lines and United Airlines, Starbucks coffeehouses, and, soon, Kinko's. At Borders, customers can indulge in personal interests such as reading online book reviews and experiencing rich multimedia audio and video services. Additionally, Borders is a great environment to catch up on email, download important presentations or access their corporate intranet from a comfortable chair.

To connect, customers need a T-Mobile HotSpot account and a Wi-Fi enabled laptop or PDA. To use the service, customers simply need to launch their Internet browser from within a participating Borders and login. A variety of plans currently are available, including the Unlimited National subscription plans starting at $29.99 a month, giving customers unlimited access to all 2,700 T-Mobile HotSpot locations nationwide. A $19.99 per month unlimited add-on plan is available for T-Mobile voice and data customers. Rate, location and other information about the T-Mobile HotSpot service can be found at www.t-mobile.com/hotspot/borders.

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 420 Borders domestic superstores, 35 international Borders stores, 37 Books etc. locations and approximately 750 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.

About T-Mobile, USA

Based in Bellevue, Wash., T-Mobile USA, Inc. is a member of the T-Mobile International group, the mobile telecommunications subsidiary of Deutsche Telekom AG (NYSE: DT). T-Mobile operates the largest GSM/GPRS 1900 voice and data network in the country, reaching over 245 million people including roaming and other agreements. In addition, T-Mobile operates the largest carrier owned Wi-Fi (802.11b) wireless broadband (WLAN) network in the country, available in more than 2,700 public access locations including Starbucks coffeehouses, Borders Books and Music, airports and American Airlines Admirals Clubs, United Red Carpet Clubs and Delta Air Lines Clubs. T-Mobile is committed to providing the best value in wireless service through its GET MORE(R) promise to provide customers with more minutes, more features and more service than any other wireless provider. For purposes of this press release, references to T-Mobile USA, Inc. consist of T-Mobile USA, Inc. and Powertel, Inc. For more information, visit the company web site at www.t-mobile.com