ANN ARBOR, Mich., June 25, 2008 - Borders announced today that it plans to open one of its new concept stores in New Orleans this October, when the retailer will debut a new 26,368-square-foot store at the former Bultman Funeral Home site located at St. Charles and Louisiana Avenues. The store will be one of 14 concept stores that Borders will open nationwide this year. The concept store represents a significant enhancement over existing Borders stores inside and out and fulfills the company’s mission to be a headquarters for knowledge and entertainment.

“We’re excited to bring one of our new concept stores to New Orleans in the heart of the Garden District,” said Borders Group Chief Executive Officer George Jones. “New Orleans is one of only 14 cities in the entire nation to be selected for a Borders concept store, and this particular location is especially relevant to me as I am a part-time resident of New Orleans. I’m eager to bring Borders’ unique in-store shopping experience to the community and to help restore the vibrant culture of this city. We are anxious for customers to start enjoying all the new features that the concept store will offer when it opens this fall because there really isn’t anything else like it in retail.”

The new Borders concept store will offer what customers have always loved about Borders - deep and intelligent selection, knowledgeable staff, and a comfortable, welcoming atmosphere - plus an exciting interactive dimension that includes enriching Web-based services accessible right in the store

Highlights of the store include:
· A Digital Center where customers can do everything from mix and make their own CDs and download books and music to publish their own books, explore their family history, and create photo books. Importantly, trained, dedicated specialists are ready to assist customers of all technical levels with any of the Digital Center’s services and products.

• Special Destinations for Cooking, Wellness, Travel, Graphic Novels and Children’s that feature books, DVDs and related merchandise as well as topical programming shown via 32″ flat screen monitors. Some destinations also include computer kiosks where customers can take advantage of a number of digital and Internet options to maximize their experiences. For example, in the Travel destination customers can use the computer kiosk to do everything from researching a trip to actually booking their travel-all within the Borders store.
• Multiple self-serve Borders.com stations offer customers the opportunity to use the retailer’s new e-commerce site while in the store. Customers can check the availability of a particular title, the title’s location in the store and even order directly from the site, ordering books, music and movies right at the kiosk with orders shipped directly home or to the store for pick up at a later.
• A fresh new interior with dazzling graphics that both guide customers to the Destinations as well as inspire them to shop the entire store’s diverse and relevant assortment of up to 170,000 book, music and movie titles. A warm, neutral color scheme and plenty of cozy seating suggest comfort and an invitation for customers to stay as long as they like.
• Enriching and enjoyable community events featuring appearances by authors and performers as well as free activities for children that may include storytime events, summer camps, author signings and other kid-focused store events.
• A Seattle’s Best Coffee^® cafe that will serve its full line of premium coffee and non-coffee beverages, including lattes, mochas and blended beverages, and a fresh food menu, featuring pastries and sandwiches.
• A Paperchase shop with a wide selection of fashionable notebooks, journals, wrapping paper, greeting cards and other gifts and stationery items from U.K.-based Paperchase^® Products Limited.
• Internet access available storewide. Through an alliance with T-Mobile^®, Borders stores are T-Mobile HotSpots^®, allowing customers using Wi-Fi enabled laptops or PDAs with a T-Mobile account the ability to comfortably surf the Web, access email, connect to their corporate network, or download large files all while connected to the nation’s largest, carrier-owned Wi-Fi network.
• Borders Recommends” titles and reviews displayed throughout the store. In addition, knowledgeable booksellers are happy to suggest titles suited to each customer.
• The Borders Original Voices program, now in its 12^th year, highlights the work of new and emerging authors and artists and helps Borders share its passion for books, music, and movies with customers from one enthusiast to another. Over the course of a year, more than 200 new works are featured in Borders stores.

Customers who shop at this store - and at any Borders, Waldenbooks or Borders Express store - are eligible to become Borders Rewards^® members. Borders Rewards is the company’s free loyalty program where all purchases count toward earning Borders Bucks that can be used on future purchases. Members also enjoy exclusive Borders Rewards Bonus Events and receive members-only coupons and savings opportunities throughout the year.

The opening of this new concept store is expected to create approximately 50 jobs in the local community. Employment opportunities at Borders in New Orleans will be posted online and available in August. To apply, please visit Borders at www.borders.jobs.

About Borders Group, Inc.
Headquartered in Ann Arbor, Mich., Borders Group, Inc. (NYSE: BGP), is a leading retailer of books, music and movies with more than 28,000 employees worldwide. Through its subsidiaries, the company operates more than 1,100 stores primarily under the Borders^® and Waldenbooks^® brand names and recently launched Borders.com for online shopping. For more information, visit www.borders.com/aboutus.

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