Borders Books & Music® Stores in Hawaii Will Soon Include Starbucks Coffee® Stores

Business Wire, Jan 19, 2006

ANN ARBOR, Mich. -- Six Borders Books & Music stores in Hawaii will soon feature Starbucks Coffee stores under a licensing agreement reached between Borders, Inc., a subsidiary of Borders Group, Inc. (NYSE:BGP), and Coffee Partners Hawaii, a joint venture and partnership between Starbucks Coffee International and Cafe Hawaii Partners.

The six Hawaii Borders locations that will feature full-service Starbucks Coffee stores include:

--  Borders Books & Music
    Waikele Center
    94-821 Lumiaina St.
    Waipahu, HI
    808-676-6699

--  Borders Books & Music
    4303 Nawiliwili Road
    Lihue, HI
    808-246-0862

--  Borders Books & Music
    Victoria Ward Center
    1200 Ala Moana Blvd.
    Honolulu, HI
    808-591-8995

--  Borders Books & Music
    Maui Marketplace
    270 Dairy Road, Suite 190
    Kahului, Maui, HI
    808-877-6160

--  Borders Books & Music
    Waiakea Center
    301 Maka'ala St.
    Hilo, HI
    808-933-1410

--  Borders Books & Music
    98-1005 Moanalua Road, Unit 815A
    Aiea, HI-Pearlridge
    808-487-1818

The majority of the stores listed above currently operate proprietary Borders cafes and will convert to Starbucks locations over the course of the next several months with all of the conversions expected to be completed by September 2006. Exceptions include the Borders store in Aiea/Pearlridge, which is a new Borders location that opened Oct. 14 with a Starbucks Coffee store in place. In addition, at the Waikele location, the existing Borders cafe will be closed and interior access will be made to adjoin the store to a neighboring Starbucks Coffee store.

"We are pleased to extend the positive working relationship with Starbucks Coffee International," said Chris Nichols, director, cafe operations for Borders. "In the U.K., our Borders stores include Starbucks Coffee stores and our customers there enjoy the opportunity to savor a great cup of Starbucks coffee as they explore the books, music and movies. It's all part of the shopping experience at Borders. Now, in Hawaii, our customers will have that same opportunity through Coffee Partners Hawaii."

"We look forward to offering the Starbucks experience to Borders customers through this new relationship," said Greg Meier, president of Coffee Partners Hawaii. "Our stores have always been a place to relax with a cup of Starbucks coffee and a good book and the new Borders locations will be a great addition to creating the 'third place' experience."

About Coffee Partners Hawaii

Since entering the Hawaii market in December 1996, Coffee Partners Hawaii, an authorized licensee of Starbucks Coffee International, has opened 54 Starbucks Coffee stores spanning four islands and creating over 1,100 jobs in the state of Hawaii. Coffee Partners Hawaii gives back to the communities in which it does business through its charitable pillars that include: the environment, AIDS research, literacy, and culture and the arts.

About Borders Group

Borders Group, Inc. (NYSE:BGP) is a leading global retailer of books, music and movies with 2004 revenues of $3.9 billion. Headquartered in Ann Arbor, Mich., the company employs approximately 34,000 people worldwide. Borders Group operates more than 475 Borders superstores and approximately 650 Waldenbooks stores throughout the U.S. In addition, the company operates over 50 Borders superstores outside the U.S., as well as 33 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 (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.