BORDERS GROUP, INC.
Exhibit 99.1
CAUTIONARY STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995 - "SAFE HARBOR" FOR FORWARD-LOOKING STATEMENTS
This report and other written reports and oral statements made from time to
time by Borders Group, Inc. (the "Company") may contain so-called
"forward-looking statements, all of which are subject to risks and
uncertainties. One can identify these forward-looking statements by their use
of words such as "expects," believes," "anticipates," "plans," "will,"
"estimates," "forecasts," "guidance," "outlook," "opinion," "projects,"
"intends," "initiatives," "looks", "should," "goals" and other words of similar
meaning. One can also identify them by the fact that they do not relate
strictly to historical or current facts. These statements are likely to
address the Company's growth strategy, future financial performance (including
sales and earnings projections), strategic alternatives, marketing and
expansion plans, such as the impact of Title Sleuth, and similar matters. One
must carefully consider any such statement and should understand that many
factors could cause actual results to differ from the Company's
forward-looking statements. These factors include inaccurate assumptions and
a broad variety of risks and uncertainties, including some that are known and
some that are not. No forward-looking statement can be guaranteed and actual
future results may vary materially. Although it is not possible to predict or
identify all such factors, they may include the following:
o consumer demand for the Company's products, particularly during the
holiday season, which is believed to be related to a number of
factors, including general economic conditions and overall
consumer spending patterns, weather conditions and, with respect
to the mall business, overall mall traffic;
o an unexpected increase in competition, including Internet competition
and competition resulting from electronic or other alternative
methods of delivery of books, music and other products to consumers,
or unanticipated margin or other disadvantages relative to our
competitors;
o the continued availability of adequate capital to fund the Company's
operations, which may from time to time include (i) the need for
additional seasonal borrowing capacity, and (ii) the availability
of satisfactory permanent financing for properties that have been
temporarily financed through the Company's lease financing
facilities;
o higher than anticipated interest, occupancy, labor, distribution and
inventory shrinkage costs;
o unanticipated adverse litigation expenses or results;
o unanticipated work stoppages;
o higher than anticipated costs associated with the closing of
underperforming stores;
o unanticipated increases in the cost of the merchandise sold by the
Company;
o the performance of the Company's strategic initiatives, including the
Internet and international expansion;
o the stability and capacity of the Company's information systems;
o unanticipated costs or problems relating to the informational technology
systems required for the operations of the Company;
o changes in foreign currency exchange rates; and
o the continued ability of the Company to locate and develop suitable
sites for its superstore expansion program and kiosk programs.
The Company does not undertake any obligation to update forward-looking
statements.
