Borders Books and Music to Open Store in Scottsdale, Ariz.

Business Editors

ANN ARBOR, Mich.--(BUSINESS WIRE)--May 17, 2002

Borders Books and Music(R) will open its seventh store in the Phoenix market in 2003. The 25,000-square-foot Scottsdale store will be located on the southeast corner of Frank Lloyd Wright and Scottsdale Road.

The new Borders will be a part of Phase II of The Promenade, a unique shopping complex that celebrates the talents of famed architect Frank Lloyd Wright, who owned a home and founded an architectural school in Scottsdale. The store will incorporate Wright's designs into its architecture and will be situated next to both the Scottsdale Visitors Center and a 125-foot spire originally designed by Wright as the principle architectural element of an Arizona State Capitol complex that was never built.

Borders will offer Scottsdale residents a comfortable place to explore over 200,000 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 takes great pride in fostering strong relationships with the communities we serve," said Shari Valcourt, district manager for the new Scottsdale location. "One way we do this is by holding a number of free events such as lectures, author signings, musical performances, children's activities and `Benefit Days' that support local charities."

Borders selected the Scottsdale location based on a variety of factors including demographics, strong national retail co-tenants, traffic patterns, the availability of parking and the attractiveness of the site.

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 the Scottsdale store, the cafe will open onto a plaza where community events will be hosted. Customers of the cafe will be able to choose from a variety of gourmet coffees, teas and beverages and enjoy desserts and light lunch items.

"Our stores have a way of being vibrant and comfortable all at once," said Valcourt. "It's a place where people can feel comfortable reading, studying, having a group discussion or simply sipping a cup of coffee. Borders will be a welcome neighbor in Scottsdale."

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 employees worldwide and operates over 370 Borders domestic superstores, 23 international Borders stores, 36 Books etc. locations and approximately 825 Waldenbooks stores. Teamed with Amazon.com, the company also offers online shopping through www.borders.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.