Borders Selects Netkey 6.5 for Retail Self-Service Kiosk Solution; Global Book, Music and Movie Retailer to Optimize Title Sleuth Kiosk Deployment and Launch New Store Technology Initiatives with Netkey

Business Wire, May 25, 2005

CHICAGO -- Netkey Inc. announced today that Borders, Inc., a subsidiary of Borders Group, Inc. (NYSE: BGP), a leading global retailer of books, music and movies, has licensed Netkey 6.5, the latest version of its enterprise software platform for retail self-service management, to support the expansion of the Borders Title Sleuth(R) program.

The announcement was made at the Retail Systems 2005 Conference and Exposition in Chicago, where Netkey is launching the Netkey 6.5 product in booth #539.

Borders Group operates over 460 stores under the Borders brand in the U.S. and is recognized as an industry leader in selection, customer service and convenience. Borders stores offer up to 200,000 titles, with thousands of Title Sleuth self-service computer stations in stores across the nation. 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. In addition, Title Sleuth provides customers with title recommendations and calendars for in-store events.

Borders used Netkey software for the successful deployment of the original Title Sleuth kiosks chain-wide in 2000. Now, Borders Group is expanding its use of Netkey by licensing the complete Netkey 6.5 platform for the development, deployment, monitoring and management of the applications and computer hardware used for the Title Sleuth kiosk network and other new self-service and digital merchandising initiatives.

"We're pleased that Borders has licensed the entire Netkey 6.5 platform to support existing and new programs in its retail stores," said V. Miller Newton, chief executive officer of Netkey. "Borders is known as a leader and innovator in the strategic use of self-service in its stores, and we look forward to delivering the software infrastructure to support these customer-centric technology initiatives."

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 more than 460 Borders superstores and approximately 650 Waldenbooks stores throughout the U.S. In addition, the company operates 46 Borders superstores outside the U.S., as well as 35 Books etc. stores located throughout Great Britain. Borders Group has also acquired Paperchase Products Limited, a leading stationery retailer based in London, England with more than 70 locations in the U.K. Teamed with Amazon.com, online shopping is available through borders.com and 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 Netkey

Netkey provides a comprehensive software platform for authoring, securing, monitoring and managing self-service applications delivered on kiosks, computer terminals, digital signs and other retail technologies. Netkey measurably lowers the cost, and increases the value, of interfacing with customers and employees on unattended devices. Customers include BMW, Borders Group, Inc., JC Penney, Menards, Target and the U.S. Postal Service. Contact Netkey at 1-800-443-7924, via e-mail at info@netkey.com, or on the Web at www.netkey.com.