Borders Group Closes Transaction for Sale of Australia/New Zealand/Singapore Businesses

ANN ARBOR, Mich., June 10, 2008 — Borders Group, Inc. (NYSE: BGP) today stated that it has closed on the previously announced transaction to sell its Australia/New Zealand/Singapore businesses to A&R Whitcoulls (ARW), the leading Australasian retailer of books and related products owned by private equity firm Pacific Equity Partners (PEP).
The agreement was described in a June 5 news release as well as a Form 8-K report recently filed by the company.
With the closing, Borders has received proceeds of approximately $90 million (USD based on current exchange rates). Additional deferred payments of up to $14 million (USD based on current exchange rates) will be paid to Borders Group on or about March 31, 2009 if certain performance targets are achieved.