Borders(R) Previews Upcoming e-commerce Site; Names Baker & Taylor for e-commerce Fulfillment

ANN ARBOR, Mich., Oct. 5 /PRNewswire-FirstCall/ -- 2007-Borders today announced that after a month of beta testing key features that will eventually become part of its upcoming Borders.com e-commerce site, the company is ready to see what customers think. Since early September, Borders has been quietly consolidating its various Web properties and transforming its existing BordersStores.com Web site into a preview platform for its highly anticipated proprietary e-commerce site, Borders.com, which is set to launch in early 2008.

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The consolidated beta site, which can be viewed at http://beta.bordersstores.com/, does not yet include an opportunity for customers to actually purchase items, but does showcase many features that will ultimately be rolled into the new Borders.com when it launches next year.

One such feature is the Magic Shelf(TM), which Borders has been testing on the beta site for over four weeks. The Magic Shelf is Borders' unique online version of the warm and engaging shopping experience that takes place in its bookstores every day. When arriving at the site's home page, customers see a realistic looking, three-dimensional shelf of actual book covers displayed as they would be in a Borders store. For details on each title, customers simply click on a book that interests them, much the way they pick up books that catch their eye in Borders stores. Over time, as customers shop at the future Borders.com, the Magic Shelf will become personalized for the shopper based on past purchases and will display books that the customer may be particularly interested in exploring. On the beta site, there is a related Magic Shelf feature called "Picked for You." Customers simply indicate the subjects in which they have an interest, and Borders will stock the "Picked for You" shelf with books on those subjects.

In addition to the Magic Shelf, features being piloted on the beta site include new and improved search capabilities and improved navigation that helps customers deeply browse categories online and filter searches in several different ways, including price and format. Also, there is a feature to include customer and employee reviews for all BordersStores.com products and a new wish list feature, which allows customers to mark items they'd like to buy for themselves or receive as gifts. This feature also includes the capability to e-mail the list to friends and family. Of course, Borders will continue to offer the popular store locator and inventory search/title reserve functions that have always been available at BordersStores.com, but the company has enhanced these features.

Borders is also integrating other existing Web properties into the beta site, including the current BordersRewards.com site, which serves as an informational site for the nearly 21 million members of the retailer's loyalty program. On this portion of the site, members can track their rewards, find answers to common questions about the program, and even customize the home page for personalization. BordersMedia.com has also been consolidated into the beta site at http://beta.bordersstores.com/. This site, which has been serving Borders customers for several months, includes many innovative and industry- leading features, including:

-- Borders "Book Club": Highlighting some of the most interesting and important authors today, such as Jodi Picoult, Khaled Hosseini, Lalita Tademy and Michael Chabon, this broadband program delivers the same relaxed, engaging and comfortable experience of the neighborhood book club into customers' homes and offices. This program debuted in September 2006 with a discussion featuring "For One More Day" author Mitch Albom, and is one of the most popular online features Borders offers. -- Borders "Live at 01": Filmed on location at Borders' first store in Ann Arbor, Mich., this program captures all the energy and intimacy of a live in-store event at a Borders store and brings it to customers online. Over the past several months, "Live at 01" has featured such talents as authors Anne Lamott, Calvin Trillin, and Ishmael Beah, as well as singers Joss Stone and Rickie Lee Jones and musician Dave Koz. In addition, the program recently broadcast an unprecedented Borders store event and in-depth personal interview with former President Bill Clinton.

In addition to these innovative programs, the Borders Media portion of the beta site also offers the "Borders Kitchen," with interviews and cooking demonstrations; "Borders Romance Reading Room," featuring sneak peeks of upcoming romance titles; "Borders Guest Shortlist," where luminaries such as Stephen King, Michael Ondaatje, Beck and Ken Burns write exclusively about their five favorite things to read, watch and listen to; "Borders Playlist," an opportunity to hear the latest releases from some of music's most talented artists; and "Borders at the Movies," where customers can preview movie trailers and listen in on interviews with authors as they talk about their books being made into films.

Customers are encouraged to visit the beta site to experience all of the features that Borders plans to perfect and ultimately offer on the new Borders.com site. To share thoughts, customers may simply visit http://bordersbeta.gather.com/. The company will consider customer input in its final e-commerce site plans.

"Our overarching strategy is to be a true-cross channel retailer that offers our customers a rich experience that enhances the way they access and use information and entertainment," said Borders Group Chief Executive Officer George Jones. "Many retailers are multi-channel-meaning they operate in more than one channel-but we are seeking to differentiate Borders by blending the best of the online shopping experience with the best of the bricks-and-mortar experience to create a greater overall customer experience. That's why it is so important for us to hear what customers have to say about our beta site. When the new Borders.com launches in 2008, it will truly be created with our customers and not just for them."

In fact, Borders was recently recognized by "RIS News," a leading retail technology publication, for its innovative cross-channel retail strategies. Borders earned a "Fusion Award" in the "Cross-Channel Innovation" category, and was among just 12 retailers recognized nationally.

In addition to announcing the beta site, Borders also revealed that the company has selected Baker & Taylor to handle primary fulfillment of books, music and movies to customers when the new Borders.com is open for business next year. Baker & Taylor will provide fulfillment services to the Borders site from its facilities across the United States.

"We selected Baker & Taylor as our primary fulfillment partner because of their excellent track record with consumer-direct fulfillment of all of the product types we'll offer at Borders.com, and their ability to serve our customers in the superior manner they deserve," said Kevin Ertell, vice president of e-business for Borders Group.

"We are delighted to be Borders' fulfillment partner for book and entertainment products" said Richard Willis, CEO, Baker & Taylor, Inc. "We look forward to working closely with Borders on this exciting initiative and providing their customers with the world-class fulfillment services that are a standard of B&T."

About Borders Group, Inc.

Headquartered in Ann Arbor, Mich., Borders Group, Inc. is a leading global retailer of books, music and movies with more than 1,100 stores and over 30,000 employees worldwide. More information on the company is available at http://www.bordersgroupinc.com/.

Safe Harbor Statement-Borders Group, Inc.

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. One can identify these forward-looking statements by the use of words such as "plans," "will," and other words of similar meaning. One can also identify them by the fact that they do not relate strictly to historical or current facts. These statements are likely to address matters such as the company's future financial performance, and its strategic plans.

These statements are subject to risks and uncertainties that could cause actual results and plans to differ materially from those included in the company's forward-looking statements. These risks and uncertainties include, but are not limited to, consumer demand for the company's products, particularly during the holiday season, which is believed to be related to general economic and geopolitical conditions, competition and other factors; the availability of adequate capital to fund the company's operations and to carry out its strategic plans; the performance of the company's information technology systems and the development of improvements to the systems necessary to implement the company's strategic plan, and, plans and features relative to its upcoming e-commerce site.

The company's periodic reports filed from time to time with the Securities and Exchange Commission contain more detailed discussions of these and other risk factors that could cause actual results and plans to differ materially from those included in the forward-looking statements, and those discussions are incorporated herein by reference. The company does not undertake any obligation to update forward-looking statements.

About Baker & Taylor, Inc.

Baker & Taylor, Inc. (http://www.btol.com/) is a global information and entertainment services company that offers books, videos, music, games and services to libraries, educational institutions, and retailers. Based in Charlotte, N.C., the company has been in existence for over 179 years, developing long-term relationships with major suppliers, including book publishers, movie studios, and music labels. Baker & Taylor maintains the largest combined in-stock book, video and music inventory in the world, and services the broadest customer base in the industry. Baker & Taylor is majority owned by Castle Harlan Partners IV, L.P., a leading private equity investment firm.