January 3 – January 10, 2008 Edition

Borders Launches
Co-Branded Online
E-Book Store with Sony

ANN ARBOR, Mich., Jan. 2, 2008–Borders® announced on December 20 that it has launched a co-branded online store with support from Sony offering digital downloads of more than 25,000 e-books. Borders and Sony have not yet given a link to the Sony digital downloads. However, the Borders site does feature e-Documents under a category called “Special Formats.” That section currently links to Amazon’s Kindle store, featuring books that can be read by the new Kindle wireless reading device.

Customers who purchase a Sony Reader Digital Book at a Borders superstore are given a promotion code and a customized version of the eBook Library software to access the new co-branded site, allowing them to immediately begin purchasing e-book downloads of titles written by bestselling authors such as Dean Koontz, Khaled Hosseini and Michael Connelly, among thousands of others.

Through its expanded agreement with Sony, announced in September, Borders is also now selling the Reader in virtually all of its Borders superstores nationwide, doubling the number of locations that had been selling the Reader since last year.

Additionally, Borders customers who are also T-Mobile HotSpot customers can access the co-branded site while in a Borders superstore via the T-Mobile HotSpot network. As customers log into the wireless service, they’ll see a special Borders e-books banner. By clicking on the banner, they’ll go directly to the co-branded site and be able to download software and purchase and download e-books directly to their personal computers.

“With the rollout of the Reader in our Borders superstores nationwide, we are seeing sales increase chain-wide, and customer interest in this exciting technology is growing,” said Kevin Ertell, Borders Group’s vice president of e-business. “By adding the opportunity through the co-branded online store to purchase e-book downloads, we are now meeting our customers’ needs fully, from device to a vast array of titles. Clearly, with this commitment and offering to customers, Borders is embracing this technology, which we firmly believe will emerge over time as important to our business.”

Sony is currently running a promotion on the Reader whereby customers who purchase the device on or before January 15, 2008 will receive a $50 credit good toward the purchase of e-books from the co-branded store as well as 100 free eBooks Classics from Sony.

About the Reader

The Reader couples an innovative electronic paper display with simple on-screen controls and stylish design. The Reader, which weighs just nine ounces and is only half an inch thick, can hold about 160 averaged sized e-books. Easily held in one hand, the Reader has a rechargeable battery that can accommodate up to 7,500 page turns on a single charge. The Reader’s high resolution electronic paper display delivers a realistic print look on an impressive 6-inch display that rivals traditional paper and results in crisp text and graphics that are easy on the eyes even in bright sunlight.

About Borders Group, Inc.

Headquartered in Ann Arbor, Mich., Borders Group, Inc. (NYSE: BGP) is a $4.1 billion global retailer of books, music, movies, periodicals, and gift and stationery items. Through its subsidiaries, Borders Group employs more than 30,000 and operates over 1,100 stores worldwide primarily under the Borders® and Waldenbooks® brand names. The company’s mission is to be a headquarters for knowledge and entertainment. Borders superstores carry up to 200,000 titles, and customers enjoy a comfortable shopping experience, as well as a host of popular events and community-centered activities when they visit their local Borders store. For more information, visit