Borders Books & Music to Open Store in Warrenton, Virginia

Business Wire, March 7, 2005

ANN ARBOR, Mich. -- Borders Books & Music(R) (NYSE:BGP) will open a 19,750 square-foot store in Warrenton, Virginia, in November. The store's new location will be in the Warrenton Center shopping plaza at the intersection of West Lee Highway and Route 17.

The new store will be Borders' 13th in the state of Virginia, including stores in Arlington, Fairfax, and the newer store in Stafford, which opened last fall. The new site was selected based on a variety of factors including consumer demographics, the strength of the co-tenants, traffic patterns, the availability of parking and the overall attractiveness of the site.

"I am excited about the special features available in this store, such as a Paperchase shop and an 'All Things Local' section tailored to showcase the best of Warrenton and Virginia," said Rick Morley, district manager for Borders. "Virginians have been very supportive of Borders in their communities and we look forward to extending our relationship to Warrenton and its nearby cities by offering them great selection, service and community involvement."

In keeping with Warrenton's unique horse history, the building will be designed with equestrian-inspired details. The store's mezzanine will feature a Seattle's Best Coffee(R) cafe that will serve their full line of premium coffee and non-coffee beverages, including lattes, mochas and blended beverages, and a fresh food menu, featuring pastries and sandwiches. The new Borders store will also include a Paperchase shop with a wide selection of fashionable notebooks, journals, wrapping paper, greeting cards and other gifts and stationery items from London-based Paperchase Products Limited, exclusively distributed within Borders in the United States.

Like the more than 500 Borders stores worldwide, the Warrenton store will offer a vast selection of up to 200,000 books, music and movie titles available in an inviting atmosphere with plenty of cushy chairs and seating throughout the store. Music fans will enjoy using the digital listening stations throughout the store to hear virtually any CD in the store before buying. In addition, Borders makes it easy to find the books that customers need. Each store features multiple self-serve Title Sleuth(TM) computer stations, offering customers the opportunity to see if a particular title is in stock and where it is located within the store. If the item is not in the store, Title Sleuth allows customers to search neighboring stores and also to access more than 15 million out-of-print and hard-to-find titles worldwide. For Borders.com and Amazon.com online shoppers, the "In-Store Express Pick Up" service combines the ease of shopping online with the convenience of paying for and picking up an item at Borders the same day.

Exploring contemporary books and CDs by innovative authors and artists is easy with Borders' "Original Voices" program. This initiative features the works of more than 200 contemporary authors and illustrators from around the world who are highlighted at Borders so the customers can uncover new favorites. For those unsure of what they're looking for, "Borders Recommends" titles and reviews are displayed throughout the store, and knowledgeable booksellers are happy to suggest titles well suited to each customer.

About Borders Group

Borders Group, Inc. (NYSE:BGP) is a leading global retailer of books, music and movies with annual revenues of $3.9 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 43 Borders superstores outside the U.S., as well as 36 Books etc. stores located throughout Great Britain. Borders Group has also acquired Paperchase Products Limited, a leading stationery retailer in the U.K. with more than 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.