Borders Books & Music(R) to Open Three Stores in Virginia.

ANN ARBOR, Mich. -- This November, Borders Books & Music (NYSE:BGP) will open three new stores in Virginia, including:

--Newport News, a 21,017 square-foot store, located in the Patrick Henry Mall at the intersection of Interstate 64 and Jefferson Boulevard

--Warrenton, a 19,750 square-foot store, located in the Warrenton Center Shopping Plaza at the intersection of West Lee Highway and Route 17

--Winchester, a 20,000 square-foot store, located in the Winchester Station Shopping Center at the intersection of Pleasant Valley and East Tevis roads

Upon the opening of these new stores, Borders will operate 15 stores in Virginia, including a new store in Stafford, which opened last fall. The new sites were selected based on a variety of factors including consumer demographics, the strength of the co-tenants, traffic patterns, the availability of parking and the overall attractiveness of the sites.

"Virginia is a wonderful state, known for its museums and cultural facilities as well as for its commitment to education," said Ray Dinterman, regional director for Borders. "We look forward to continuing to cultivate our relationship with book, music and movie lovers in Virginia and offering its cities great selection, service and community involvement."

Like the more than 500 Borders stores worldwide, the stores in Newport News, Warrenton, and Winchester will offer a vast selection of up to 200,000 book, music and movie titles available in an inviting atmosphere with plenty of comfortable seating throughout the stores. The new stores will feature Seattle's Best Coffee(R) cafes that will serve their full line of premium coffee and non-coffee beverages, including lattes, mochas and blended beverages, and a fresh food menu, featuring pastries and sandwiches. The stores will also include Paperchase shops 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.

Through an alliance with T-Mobile(R), Borders stores are T-Mobile HotSpots(R), 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.

In addition, Borders makes it easy to find the books, music and movies that customers need. Each store features multiple self-serve Title Sleuth(R) computer stations, offering customers the opportunity to see if a particular title is in stock and where it is located within the store. If the item is not in the store, Title Sleuth allows customers to search neighboring stores and also to access more than 15 million out-of-print and hard-to-find titles worldwide. Through an alliance with Amazon.com, online shoppers at Borders.com can use the "In-Store Express Pick Up" option. This service combines the ease of shopping online with the convenience of paying for and picking up an item at a Borders store the same day.

Borders Original Voices program, now in its tenth year, gives recognition to 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. For those unsure of what they're looking for, "Borders Recommends" titles and reviews are displayed throughout the store, and knowledgeable booksellers are happy to suggest titles well suited to each customer.

Anyone interested in positions at these new stores should visit www.bordersgroupinc.com/careers for additional information.

About Borders Group

Borders Group, Inc. (NYSE:BGP) is a leading global retailer of books, music and movies with annual revenues of $3.9 billion. Headquartered in Ann Arbor, Mich., the company employs approximately 32,000 people worldwide. Borders Group operates more than 460 Borders superstores and approximately 650 Waldenbooks stores throughout the U.S. In addition, the company operates 46 Borders superstores outside the U.S., as well as 35 Books etc. stores located throughout Great Britain. Borders Group has also acquired Paperchase Products Limited, a leading stationery retailer based in London, England with more than 70 locations in the U.K. Teamed with Amazon.com, online shopping is available through Borders.com (www.borders.com) and Waldenbooks.com (www.waldenbooks.com). More detailed information on the company is available at www.bordersgroupinc.com. Information regarding Borders store locations, in-store events and title reservation is available through www.bordersstores.com.