Borders Partners with Netkey, Providing In-Store Kiosks With Instant Ability to Order Books, Music, Videos.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--Sept. 25, 2000

Borders(R), Inc. Using Netkey(R) 4.0 for Customized Self-Service

Kiosks for Customers

Borders Books and Music stores, one of the nation's top booksellers, will now be able to offer its customers the ease of an in-store kiosk that utilizes the latest in web-based technologies to put millions of titles at the fingertips of Borders' store customers.

The kiosk, featuring Netkey's patented software, lets Borders customers perform self-directed searches of more than 400 subject areas including top-selling books, music and videos/DVDs. Netkey worked with Borders to customize its kiosk network, allowing customers to locate a desired title within the retail store immediately or locate it in the company-wide stock supply.

Netkey is demonstrating its award-winning retail kiosks at the National Retail Federation Conference (NRF.com 2000), Booth No. 933, at the San Diego Convention Center on September 25-26, 2000.

The Netkey-powered Borders kiosk provides customers with an interactive tool that can make buying decisions easier and faster. "Title Sleuth is a significant milestone in our retail convergence strategy," said Mary Jean Raab, senior vice president, retail direct and convergence for Borders. "We are taking our fundamental strength in customer service to a new level by bringing the range and convenience of the Internet to the store and marrying it with the insight and knowledge of our staff to create a powerful customer experience."

Borders Group defines retail convergence as the integration of traditional and emerging retail channels and technology to provide customers with a compelling and enhanced shopping experience. The rollout of Title Sleuth kiosks began this summer and will continue throughout this fiscal year to the more than 300 Borders stores around the country. Early results -- based on customer reaction and increased special order sales -- are very encouraging.

"Netkey's mission is to provide clients with kiosk software solutions that can be molded to their businesses' specific needs," said Alex Richardson, Netkey's CEO. "The flexibility of Netkey software allows clients like Borders to provide their customers a targeted, enhanced level of service."

Customers can use the kiosk to look at staff-recommended titles, read book reviews, view commentary about new videos and music, learn about upcoming in-store events or print information on any title for immediate use.

The flexibility and power of Netkey's platform also offers Borders the option to centrally program each kiosk to display which titles are bestsellers in a particular store. The kiosks are continuing to be rolled out in Borders stores across the country, in time for the holiday shopping season.

About Netkey Inc.

Netkey Inc. (formerly Lexitech Inc.) is the leading provider of innovative end-to-end solutions for Internet kiosks. Netkey provides patented self-service e-commerce systems to a wide spectrum of industries, bridging the gap between "dotcoms" and traditional businesses by Web-empowering storefronts, bank branches, payphones, transportation centers and other public areas via Internet kiosks. Netkey delivers its hardware-independent software through its own Internet-based application service provider (ASP) site called Netkey Express (http://express.netkey.com), and through partnerships with leading systems providers.

Netkey's blue-chip list of forward-thinking customers include Yahoo!, JC Penney, Microsoft Corp., Borders Inc., Hong Kong WebPhone Network, J.C. Decaux, and Bayer Corp. Netkey investors include Zero Stage Capital, and CyberStarts. The company has headquarters in Branford, Conn. and offices in San Francisco and New York. For more information about Netkey and its award-winning solutions, call 1-800-443-7924, email [e-mail], or visit http://www.netkey.com.

Netkey Inc. holds U.S. Patent Nos. 5,761,071 and 6,078,848. Netkey, Lexitech and "Turn the Monitor Around" are trademarks of Netkey Inc. Other product and company names herein may be trademarks of their respective owners.

About Borders Group Inc.

Borders Group, Inc., is a leading global retailer of books, music, video and other information and entertainment items with stores in the United States. Headquartered in Ann Arbor, Mich., Borders Group, Inc. is the parent company of Borders, Inc., which operates over 300 Borders Books and Music stores in the United States and the U.S. territory of Puerto Rico, offering what is widely regarded as the broadest selection of books and multi-media titles available to consumers anywhere. It is also the parent of Borders.com, an electronic commerce site that has access to nearly 700,000 titles and over 10 million books, music and video items in stock and ready for immediate shipping from a state-of-the-art fulfillment and distribution center. With cafe operations in nearly all of its stores, Borders, Inc., is one of the nation's largest specialty coffee retailers. Through Borders (UK) Limited, Borders Group, Inc., also operates 30 Books etc. and eight Borders stores in the U.K. In addition, Borders Group, Inc., owns Walden Book Company, Inc., which has approximately 900 Waldenbooks stores in malls, shopping centers and airports across the country. Borders Group, Inc., trades on the New York Stock Exchange under the symbol "BGP." SOURCE Borders Group, Inc.

EDITOR'S NOTE: PHOTOS OF KIOSK AVAILABLE UPON REQUEST