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BORDERS GROUP HONORED FOR OUTSTANDING ACHIEVEMENT IN CROSS-CHANNEL RETAILING BY RIS NEWS

ANN ARBOR, Mich., Oct. 13, 2008—Borders today announced that it has once again been honored with a Fusion Award from RIS News for its innovative cross-channel retail strategies. The Fusion Awards honor retailers for their excellence in cross-channel and e-commerce operations. RIS News also recognized Borders with a Fusion Award for its cross-channel strategies last year.Borders achieved a milestone in cross-channel retailing earlier this year when it launched its own e-commerce site—Borders.com. The site is rich with innovations that bring the bookstore experience to life online, including the Magic Shelf™, a virtual bookshelf that allows customers to easily view book, music and movie titles much the way they browse the book tables and displays and bookshelves in their favorite Borders store. Displayed prominently on Borders.com —and enjoyed by millions of Borders customers—is Borders Media, the retailer’s exclusive and original video programming that includes such popular programs as “Live at 01,” which captures all the excitement and energy of in-store performances and author events held at the Borders’ first store in Ann Arbor, and “Borders Book Club,” an online version of the neighborhood book club.

Among the most important cross-channel features on Borders.com is the ability for Borders Rewards® loyalty program members, which now number 29 million, to earn and redeem rewards and savings online. Borders.com is in the process of being introduced to Borders’ brick-and-mortar stores on existing computer kiosks, so customers will be able to order items online in the store as well as at home or at work. They can choose to have items shipped to their home or office, or they can have their order shipped for free to the store. When using Borders.com in the store, customers will also be able to view staff and customer recommendations and access the wish lists they’ve compiled. There are any number of possible combinations of browsing and buying with the Borders cross-channel strategy giving customers the ultimate in convenience that truly suits their needs at any time and anywhere.

“With the launch of Borders.com, we’ve successfully combined the best of our online assets with the best of what our stores have to offer to create what we feel is a superior cross-channel experience for our customers,” said Kevin Ertell, senior vice president of e-business for Borders Group. “We’re honored to receive a Fusion Award from RIS News and pleased that the editors have recognized the work and creativity our team has put into creating and executing a successful cross-channel strategy that sets us apart in the bookselling industry.”

About Borders Group
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. Through its subsidiaries, the company operates more than 1,100 stores worldwide 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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