ANN ARBOR, Mich., June 10, 2008 - Borders Group, Inc. (NYSE: BGP) today stated that it has closed on the previously announced transaction to sell its Australia/New Zealand/Singapore businesses to A&R Whitcoulls (ARW), the leading Australasian retailer of books and related products owned by private equity firm Pacific Equity Partners (PEP).

The agreement was described in a June 5 news release as well as a Form 8-K report recently filed by the company. With the closing, Borders has received proceeds of approximately $90 million (USD based on current exchange rates). Additional deferred payments of up to $14 million (USD based on current exchange rates) will be paid to Borders Group on or about March 31, 2009 if certain performance targets are achieved.

About Borders Group
Headquartered in Ann Arbor, Mich., Borders Group, Inc. is a $3.8 billion retailer of books, music and movies with more than 1,100 stores and approximately 30,000 employees worldwide. The company recently launched Borders.com for online shopping. More information on the company is available at www.borders.com.

Filed under: Retail