Oregon Borders Books and Music Stores are the Nation's First to Feature Seattle's Best Coffee Cafes

Business Wire, Feb 9, 2005

SEATTLE -- Celebratory First Pour Ceremony at Borders in Beaverton to Feature Company CEOs and Beaverton Mayor

Six Borders Books and Music(R) stores throughout Oregon will be the nation's first to feature Seattle's Best Coffee(R) cafes under a national licensing agreement that Borders, Inc., a subsidiary of Borders Group, Inc (NYSE:BGP) and Seattle's Best Coffee LLC, a wholly-owned subsidiary of Starbucks Corporation (Nasdaq:SBUX) announced last August. Over the next few years, more than 400 existing Borders cafes across the nation will be converted to Seattle's Best Coffee cafes and will also be featured in new Borders stores as they open across the country beginning this year.

Borders stores in Corvallis, Eugene, Gresham, Portland, Salem and Beaverton underwent extensive renovations to convert the existing Borders-operated cafes to new Seattle's Best Coffee cafes. All six cafes will celebrate their grand re-openings Friday, Feb. 11. The Beaverton Borders store will be the centerpiece of the celebration with a special First Pour ceremony - a ribbon cutting Seattle's Best Coffee-style - to include Beaverton Mayor Rob Drake. The event will also feature welcome remarks from Borders Group Chief Executive Officer Greg Josefowicz, and Starbucks chief executive officer designate Jim Donald.

Just prior to the First Pour ceremony, Seattle's Best Coffee and Borders will host a special "Behind the Beans and Books" tour for news media. Seattle's Best Coffee will give attendees a rare, behind-the-scenes look at the art of coffee and how smooth roasting creates the perfect cup of Seattle's Best Coffee. Guests will experience a coffee tasting and even try their hand at preparing their own lattes and mochas. In addition, Borders will provide guests with a glimpse at what goes on behind the shelves, with an inside view of how the books, music and movies we love make their way from the authors and artists who create them to store shelves.

"It's gratifying to see the agreement we announced last summer become a reality," said Josefowicz. "Customers in our stores throughout Oregon will be the first in the nation to experience the new Seattle's Best Coffee cafes and we look forward to welcoming them as we kick off this relationship. Enjoying a smooth cup of coffee while shopping at Borders is a big part of our destination shopping experience and we're pleased to give customers in Oregon the first opportunity to enjoy it."

Like existing Seattle's Best Coffee locations, the cafes at Borders stores in Oregon and around the nation will serve their full line of Seattle's Best Coffee's premium coffee and non-coffee beverages, including lattes, mochas and the JavaKula(TM), Seattle's Best Coffee's signature blended beverage line. In addition, the cafes will offer a fresh food menu, featuring pastries and bakery items, as well as the new Oven Song(TM) fresh food program, featuring warm sandwiches. The cafes will also feature select Seattle's Best Coffee merchandise and a variety of whole bean coffees. The cafes feature fun, new graphics celebrating Seattle's Best Coffee's heritage and the lighter side of Seattle coffee culture. The cafes also offer customers comfortable seating to relax while enjoying their smooth cup of coffee.

"The opening of these first six cafes with Borders stores represents a great first step in the growth of the Seattle's Best Coffee brand at retail," said Donald. "The experience we have in licensing combined with Borders expertise as a retailer of books, music and movies will make this a great success. This is an exciting time for both companies."

Annual Meeting B-Roll Footage

Starbucks Corporation's Annual Meeting b-roll footage will be available for download at IA-5, Transponder 05 (C-Band), Downlink Frequency: 3800MHz Vertical, Audio: 6.20/6.80 on Wednesday, February 9 from 9:30 - 9:45 p.m. EST and Thursday, February 10 from 11:00 - 11:15 a.m. EST.

About Borders Group

Borders Group Inc. (NYSE:BGP) is a leading global retailer of books, music and movies with annual revenues of $3.7 billion. Headquartered in Ann Arbor, Mich., the company employs approximately 32,000 people worldwide. Borders Group operates over 460 Borders superstores and approximately 700 Waldenbooks stores throughout the U.S. In addition, the company operates 42 Borders superstores outside the U.S., as well as 36 Books etc. stores located throughout Great Britain. Borders Group recently acquired Paperchase Products Limited, a leading stationery retailer in the U.K. with 70 locations. Teamed with Amazon.com, online shopping is available 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 regarding Borders store locations, in-store events and title reservation is available through www.bordersstores.com.

About Seattle's Best Coffee

Seattle's Best Coffee, LLC, a wholly owned subsidiary of Starbucks Corporation, was founded in 1970 and retains a strong link to Seattle coffee culture. Seattle's Best Coffee is available in the continental U.S. and Canada in company-operated, and franchised locations, Borders Books and Music, supermarkets, and at foodservice locations such as college campuses, restaurants, hotels and cruise lines. Seattle's Best Coffee features smooth roasted premium coffees across a broad product portfolio including blends, varietals, organics and flavored coffees that help to satisfy the variety-seeking nature of coffee consumers. Seattle's Best Coffee offers more than 30 whole bean and ground coffees, espresso beverages, JavaKula(TM), Seattle's Best Coffee's signature blended beverage line, Oven Song(TM) fresh food products and select merchandise.