BORDERS GROUP honored for cross-channel retailing excellence by ‘RIS NEWS’

ANN ARBOR, Mich.— Borders Group, Inc. (NYSE: BGP) has been 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, joining 11 other retailers being honored for excellence in cross-channel and e-commerce operations.

Central to Borders’ overarching cross-channel strategy is the creation of its upcoming proprietary e-commerce site, and the seamless connection of the site to brick and mortar stores and online communities to create a single, integrated and enhanced overall experience for customers.

The retailer’s cross-channel offerings also include the Borders Search in-store kiosks, which enable customers to place special orders, locate titles in stores and conduct out-of-print searches, and sample music before they make a purchase. Other core cross-channel elements that support this strategy include the retailer’s nearly 21-million-member Borders Rewards® program, an e-mail-based customer loyalty initiative; Borders.Gather.com, an alliance with social networking site Gather.com; “Borders Book Club,” an online version of the neighborhood and store book club; and “Borders Live at 01,” the online video series of author readings and other events held at the company’s first store located in downtown Ann Arbor.

“This recognition by ‘RIS News’ validates the innovative technology strategies we are employing to become a true cross-channel retailer that provides a total experience for our customers,” said Chief Executive Officer George Jones. “The advancements we’ve made to date will be greatly enhanced when we launch our new Borders.com Web site in early 2008, which will be the major milestone in driving our cross-channel position.”

According to Kevin Ertell, vice president of e-Business for Borders Group, “Once launched, the new Borders.com site will fuel our cross-channel offerings by providing a highly usable and valuable enhancement and extension of the Borders in-store experience, giving our customers a unique online shopping experience that is fully integrated with our in-store Borders Search kiosks and our Borders Rewards customer loyalty program.”

Borders Group will be formally recognized today at the 4th Annual “RIS News” Fusion Awards presentation in Scottsdale, Ariz.