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FOR IMMEDIATE RELEASE
Contact:
Investor Relations Inquiries Media Inquiries
Bruce Quinnell Joele Frank/Patricia Sturms
Vice Chairman J. Frank and Associates
(734) 477-4214 (212) 355-4449, ext. 107/122
BORDERS GROUP TO EXPLORE STRATEGIC OPTIONS
Retains Merrill Lynch
ANN ARBOR, MI, (March 3, 2000) - Borders Group, Inc. (NYSE: BGP) today
announced that its Board of Directors has determined to explore the strategic
alternatives that may be available to the company and that it has retained the
investment banking firm of Merrill Lynch & Co., Inc. to assist in that effort.
Borders stated that the Board's decision to explore strategic alternatives
is driven by the fact that it believes that Borders' stock is significantly
undervalued in the market.
Gregory P. Josefowicz, president and chief executive officer of Borders
Group, said, "The Board intends to explore all alternatives for the purpose of
creating shareholder value. These could include a recapitalization, a leveraged
buyout, or a business combination with another company.
"We have an outstanding track record of growth and innovation. We're proud
of the many contributions our employees have made to our success and, as
security holders themselves, their interests are aligned with those of our
shareholders," Josefowicz continued.
Borders said that there can be no assurance that any transaction will
occur.
As previously announced, the company will report 1999 results after the
market closes on Monday, March 6, 2000.
"We expect to report results for 1999 in line with previous disclosures
along with greater detail about the results of each of our businesses,"
Josefowicz added. -more-
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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, and Singapore.
Headquartered in Ann Arbor, Mich., Borders Group, Inc., is the parent company of
Borders, Inc., which operates over 290 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 26 Books etc. and six 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." To learn more about the company, visit http://www.bordersgroupinc.com.
For information on Borders stores, visit http://www.bordersstores.com. For the
ultimate online book, music and video shopping experience, explore
http://www.borders.com.
This release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. One can identify these
forward-looking statements by the use of words such as "expects," "plans,"
"will," "estimates," "believes," "forecasts," "guidance," "intends," "projects,"
"initiatives," "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, financial performance (including sales and earnings guidance),
strategic alternatives, marketing and expansion plans or expectations, the
impact of growth initiatives, Y2K compliance and similar matters. The Company
has identified certain risk factors which could cause actual results and plans
to differ substantially from those included in the forward-looking statements.
These factors are discussed in Exhibit 99.1 to the Company's Form 10-K Report
for the fiscal year ended January 24, 1999, and that discussion regarding risk
factors is incorporated herein by reference. The Company does not undertake any
obligation to update forward-looking statements.
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