Borders Inc. Joins Echo
Retail-Driven Digital Music Consortium Expands with the Addition of Borders as Seventh Retail Investor
Company Press Release
March 19, 2003

Ann Arbor, Mich. and Los Angeles, Calif. - Echo announced today that Borders Inc. has joined its growing group of industry leading music retailers committed to bridging the gap between brick and mortar and digital music distribution through an investment in Echo’s Los Angeles-based consortium. First launched in January, Echo was founded by retailers Best Buy, Co., Hastings Entertainment, Tower Records, Trans World Entertainment, Virgin Entertainment, and Wherehouse Music.

Borders joins Echo as an equal shareholder with the other six retail founders, strengthening the joint venture. New York investment bank, Sonenshine Pastor advised Borders in this transaction. The book and music retailer will focus on the group’s goal of building a licensing and technology platform for the sale and delivery of digital music, as well as bringing additional marketing capabilities and industry knowledge to the consortium. With more than 435 book and music superstores around the globe, Borders is the second largest retailer of books, music and movies in the world.

“Echo welcomes the addition of Borders as an endorsement of Echo’s vision. Echo’s approach to working with content providers to develop an industry leading digital music platform represents a real opportunity for music retailers to create stronger relationships with their customers,” stated Dan Hart, CEO of Echo. “This is great for Echo, Borders, and the digital music industry. Borders’ industry stature and significant consumer presence will strengthen Echo’s ability to help retailers extend traditional customer relationships into the world of digital music.”

“Borders has a strong commitment to providing our customers with an incredible variety in books, music and movies as well as an appealing shopping experience. By working with Echo, Borders will extend that commitment into digital music delivery,” said Michael Spinozzi, executive vice president and chief marketing officer for Borders Group.

Echo is actively seeking competitive licenses from the recording industry to enable the mass marketing and growth of legitimate digital music products and services through a variety of online and in-store offerings.

Echo seeks to deliver digital music products and services through individually branded or co-branded consumer offerings. The joint venture will enable its retail partners to extend their traditional marketing acumen to the world of digital music and will provide consumers online an expanded variety of entertainment software products and services.

About Echo

Echo (www.echo.com) is a joint venture between Best Buy, Co., Borders Books and Music, Hastings Entertainment, Tower Records, Trans World Entertainment, Virgin Entertainment, and Wherehouse Music. Echo is working to structure digital content licenses, marketing programs, andinnovative new technologies that will enable its retail members to revolutionize the digital music marketplace through the launch of a new era of consumer-focused digital music offerings.

About Borders Group, Inc.

Borders Group 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 405 Borders domestic superstores, 31 international Borders stores, 37 Books etc. locations and approximately 775 Waldenbooks stores. Teamed with Amazon.com, the company also offers online shopping through Borders.com and Waldenbooks.com. More detailed information on the company is available at www.bordersgroupinc.com. Information on Borders stores is available through www.bordersstores.com.

Borders Group Safe Harbor Statement

This release contains forward-looking statements within the meaning of the Private Securities Litigation and Reform Act of 1995. One can identify these forward-looking statements by use of words such as “may,” “will,” “anticipates,” “plans,” “expects,” and other words of similar meaning. These statements are subject to risks and uncertainties that could cause actual results and plans to differ materially from those included in the company’s forward-looking statements. The forward-looking statements include future benefits and future results from this investment. More information about factors that potentially could affect Borders Group’s results is included in Borders Group’s filing with the Securities and Exchange Commission, including its quarterly report on Form 10-Q for the fiscal quarter ended October 27, 2002 and all subsequent annual reports on Form 10-K and quarterly reports on Form 10-Q.