Stockholder Information

Corporate Headquarters
Borders Group, Inc.
100 Phoenix Drive
Ann Arbor, Michigan 48108
(734) 477-1100

Independent Accountants
Ernst & Young LLP
500 Woodward Avenue
Detroit, Michigan 48226

Registrar and
Stock Transfer Agent
First Chicago Trust Company
A division of EquiServe
P. O. Box 2500
Jersey City, NJ 07303
(800) 446-2617

Common Stock
The Company’s Common Stock trades on the New York Stock Exchange under the symbol BGP.

Annual Meeting
Borders Group, Inc. ’s annual meeting of stockholders will be held on May 17, 2001 at 11: 30 a. m. Central time at The Palmer House Hilton, 17 East Monroe Street, Chicago, Illinois 60603.

Market Price for Common Stock
The following table sets forth for the period indicated the high and low market prices for the Common Stock on the New York Stock Exchange.

As of March 6, 2001, there were approximately 4,206 holders of the Company’s Common Stock. This number excludes individual stockholders holding stock under nominee security position listings.

Dividends

The Company has not declared any cash dividends and intends to retain its earnings to finance future growth. Therefore, the Company does not anticipate paying any cash dividends in the foreseeable future. The declaration and payment of dividends, if any, is subject to the discretion of the Board of Directors of the Company and to certain limitations under the Michigan Business Corporation Act. In addition, the Company’s ability to pay dividends is restricted by certain agreements to which the Company is a party. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources.”

Stockholders’ Inquiries

For information about Borders Group, Inc. and its subsidiaries, including Annual Reports, Form 10-K and 10-Q documents and other available financial information, please send your request to:
Borders Group, Inc.
Investor Relations
100 Phoenix Drive
Ann Arbor, Michigan 48108
Phone: (734) 477-1794
Fax: (734) 477-1901

Information can also be obtained via the Internet by visiting the Borders Web site at www.bordersgroupinc.com or via fax by calling Company News On-Call at (800) 758-5804, ext. 106169.

Safe Harbor Statement

This report 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,” “anticipates,” “plans,” “agenda,” “will,” “estimates,” “believes,” “may,” “indicates,” “forecasts,” “focusing,” “guidance,” “outlook,” “projects,” “initiatives,” “strives,” “seeks,” “goals,” “anticipate,” “looks,” “should,” 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), shareholder value, share repurchases, strategic alternatives, potential partnership arrangements, marketing and expansion plans, retail convergence initiatives, such as the rollout of Title Sleuth and related capabilities, and the impact of growth initiatives. These statements are subject to risks and uncertainties that could cause actual results to differ materially from the Company’s forward-looking statements. Please refer to the Company’s annual, quarterly and periodic reports on file with the SEC for a detailed discussion of such risks and uncertainties. The Company does not undertake any obligation to update forward-looking statements.

Change in Accountant

On October 20, 2000, the Company‘ s Board of Directors, acting upon the recommendation of the Audit Committee of the Board, voted to dismiss its independent auditor, PricewaterhouseCoopers LLP (“PwC”). The reports of PwC on the Company‘ s financial statements for the 1999 and 1998 fiscal years did not contain any adverse opinion or a disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles. During the 1999 or 1998 fiscal years and the period through October 20, 2000, there were no disagreements between the Company and PwC on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of PwC, would have caused it to make reference to the subject matter of the disagreements in connection with its reports on financial statements. In addition, during the 1998 and 1999 fiscal years and the period through October 20, 2000, there were no “reportable events” within the meaning of Item 304 of the Securities and Exchange Commission's regulation S-K. The Company retained the accounting firm of Ernst & Young LLP (E& Y) on October 20, 2000, to make an examination of the financial statements of the Company for the 2000 fiscal year.