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Sony and Borders to Sell Digital Reading Device

Relationship Brings Sony Reader to Borders Stores Nationwide

SAN DIEGO, April 3, 2006 – Sony Electronics and BordersA, Inc., today announced an agreement to make the Sony Reader – an innovative reading device for e-books and text documents – available through about 200 Borders stores nationwide.

The Sony Reader will debut in Borders and more than 30 Sony Style stores around the country as well as online at www.sonystyle.com. Borders stores, including some airport locations, will be outfitted with custom-designed display fixtures that will enable customers to learn about the device firsthand and experience reading with the high-contrast, high-resolution electronic paper display.

“Borders is committed to helping our customers enrich their lives through knowledge and entertainment,” said Borders Senior Vice President of Trade Books Bill Nasshan. “That is why we’ve always been committed to offering a vast selection of books in our stores. Now, with this agreement to offer the Sony Reader to Borders customers, we are adding an exciting, new book format that gives those who are passionate about reading another way to indulge that passion. We are proud to be associated with Sony for the introduction of this exciting new product.”

Coupling an innovative electronic paper display with a lightweight, compact form factor and a stylish, durable design, the Sony Reader will allow active readers to carry as much as they want to read whether they are traveling on the road or just around the corner. Roughly the size of a paperback novel, but thinner than most (about .5 inches thin), the device can store hundreds of books and other documents using a combination of internal flash memory and optional Memory StickA or Secure Digital (SD) flash memory cards.

“This agreement with Borders, a brand that resonates with book lovers everywhere, affords us the opportunity to showcase the Sony Reader directly to reading enthusiasts,” said Ron Hawkins, vice president of Portable Reader Systems at Sony Electronics. “Borders stores provide the premier locations for customers to see the Reader and experience all the advantages this revolutionary digital reading device has to offer.”

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As part of the relationship, Borders customers will also have the opportunity to purchase prepaid cards, redeemable online for e-books at the Sony CONNECT service which will offer a broad selection of trade fiction and non-fiction e-books from major and independent publishers at prices competitive with books offered in stores.

“In addition to e-books, the Sony CONNECT service will offer Borders customers who buy the Sony Reader access to a broad selection of web content in the form of blogs, news feeds and online magazines,” said Lee Shirani, vice president of Sony CONNECT Inc. “Reading enthusiasts can now join the ranks of other digital media consumers to read their text content – e-books and Internet content – portably, anytime, anywhere.”

In addition to e-books offered through the Sony CONNECT service, the Reader can store and display personal documents in Adobe PDF format as well as JPEG photos. With a seemingly limitless battery life equivalent to roughly 7,500 page turns, avid readers can devour a dozen bestsellers plus War and Peace without ever having to recharge.
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About Borders
Borders Group, Inc. is a Fortune 500 company that trades on the New York Stock Exchange under the symbol BGP. The company is a leading global retailer of books, music, movies, and gift and stationery items with 2005 revenues of $4 billion. Headquartered in Ann Arbor, Michigan, Borders Group, through its subsidiaries, employs more than 35,000 people worldwide and serves more than 30 million customers each year on a global basis. The company is organized into three business segments: Borders Domestic Superstores, International, and Waldenbooks Specialty Retail. Currently, there are more than 470 domestic Borders Superstores. In the International segment, there are 55 Borders superstores located mainly in the U.K. and Asia Pacific, as well as 33 Books etc. stores primarily throughout Great Britain. In addition, the International segment includes Paperchase Products Limited, a U.K.-based gifts and stationery retailer with approximately 90 locations. The Waldenbooks Specialty Retail segment includes over 675 Waldenbooks, Borders Express, Borders outlet and airport stores as well as the company’s seasonal calendar business. More information on the company is available at www.bordersgroupinc.com.

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