Borders Books and Music to Open Store in Billings, Mont.; Borders Also to Open Bozeman, Mont., Store in Mid-February.

Business Editors

ANN ARBOR, Mich.--(BUSINESS WIRE)--Dec. 6, 2002

Borders Books and Music(R) (NYSE:BGP) will open a 20,000-square-foot store in Billings, Mont., in mid-February 2003. The store will be located in the Market Place West shopping center at the intersection of King Street and 29th West Street. Borders will also simultaneously open a 20,000-square-foot store in Bozeman, Mont., at the southwest corner of North 19th Street and Valley Center Road, just south of U.S. Interstate 90. The two stores will mark Borders' entry into the state of Montana.

Borders will offer Billings and Bozeman residents a comfortable place to explore over 150,000 book, music, DVD and periodical titles, as well as the opportunity to experience cutting-edge service technology backed by a knowledgeable staff with a commitment to the community.

"Borders shoppers love the community spirit that is fostered at the stores," said Cynthia Latish, regional director for the new Montana locations. "It's a great atmosphere, and the stores host a number of free events for our customers. Author signings, live music, children's events and `Benefit Days' that support local non-profits will be a regular part of the stores' offering. Borders stores also have a dedicated corporate sales representative to address the needs of schools, libraries, hospitals and businesses in the area."

Borders selected the Montana locations based on a variety of factors including demographics, traffic patterns, the availability of parking, and the attractiveness of the sites.

As a retailer, Borders is unique in tailoring its title base to respond to the interests of the customers who shop each store location. Just 50 percent of Borders' title base is common to all stores, while the other half is customized to the location by experienced buyers using the company's sophisticated computerized inventory system.

In addition to offering books, music and movies, Borders invites shoppers to unwind at Cafe Borders. In both the Billings and Bozeman stores, customers of the cafe can choose from a variety of gourmet coffees, teas and beverages and enjoy desserts and light lunch items.

Borders Group, Inc., (NYSE:BGP) is a leading global retailer of books, music, video and other information and entertainment items with stores in the United States, United Kingdom, Australia, New Zealand, Singapore, and the commonwealth of Puerto Rico. A FORTUNE 500 company headquartered in Ann Arbor, Mich., Borders Group employs 32,000 worldwide and operates over 400 Borders domestic superstores, 29 international Borders stores, 37 Books etc. locations and approximately 800 Waldenbooks stores. Teamed with Amazon.com, the company also offers online shopping through Borders.com (www.borders.com) and Waldenbooks.com (www.waldenbooks.com).

More detailed information for journalists is available at www.bgimediacenter.com. Financial data is hosted on www.bordersgroupinc.com and information on Borders stores is available through www.bordersstores.com.