Borders Group and Barnes & Noble Reach Settlement With American Booksellers Association

Apr 19, 2001, 01:00 ET from Borders Group, Inc.

    ANN ARBOR, Mich., April 19 /PRNewswire/ -- Borders Group, Inc. (NYSE:   BGP)
 announced today that a settlement has been reached in the action instituted by
 the American Booksellers Association and 26 independent bookstores against
 Borders and Barnes & Noble.  U.S. District Judge William Orrick presided over
 the trial, which began April 9, in the United States District Court for the
 Northern District of California.  Under the agreement Borders will pay
 $2.35 million, a small portion of the plaintiffs' legal fees.
     On February 27, Judge William Orrick heard arguments for the summary
 judgement phase of the case and took the case under advisement before
 dismissing damage claims on March 21.  At that time, Judge Orrick ruled that
 the ABA and the bookseller plaintiffs could seek injunctive relief and legal
 fee costs.
     Borders Group President and Chief Executive Officer Greg Josefowicz said,
 "The Company has been completely vindicated in this case.  Two very important
 points to note are that the settlement does not require any change in our
 business practices, and that the payment to the plaintiffs amounts to a
 fraction of their legal costs.  We have defended our position vigorously from
 the beginning and are extremely pleased with the outcome of the case."
 Josefowicz also noted that the settlement allows Borders to avoid anticipated
 ongoing expenses relating to the suit.
     Earnings estimates for 2001 will remain unchanged as a result of this
 settlement.  Earnings in the first quarter of 2001 will be negatively impacted
 by about $.02 earnings per share.  This will be offset with earnings
 improvements of $.02 per share, primarily in the second quarter of 2001, due
 to lower future legal costs.
     Headquartered in Ann Arbor, Mich., Borders Group employs 30,000 worldwide
 and operates 335 Borders domestic superstores, 14 international Borders
 stores, 31 Books etc. locations, 869 Waldenbooks stores and Borders.com .
     Information for journalists is available at www.bgimediacenter.com .
 Financial data is hosted on www.bordersgroupinc.com and information on Borders
 stores is available through www.bordersstores.com .
 
 

SOURCE Borders Group, Inc.
    ANN ARBOR, Mich., April 19 /PRNewswire/ -- Borders Group, Inc. (NYSE:   BGP)
 announced today that a settlement has been reached in the action instituted by
 the American Booksellers Association and 26 independent bookstores against
 Borders and Barnes & Noble.  U.S. District Judge William Orrick presided over
 the trial, which began April 9, in the United States District Court for the
 Northern District of California.  Under the agreement Borders will pay
 $2.35 million, a small portion of the plaintiffs' legal fees.
     On February 27, Judge William Orrick heard arguments for the summary
 judgement phase of the case and took the case under advisement before
 dismissing damage claims on March 21.  At that time, Judge Orrick ruled that
 the ABA and the bookseller plaintiffs could seek injunctive relief and legal
 fee costs.
     Borders Group President and Chief Executive Officer Greg Josefowicz said,
 "The Company has been completely vindicated in this case.  Two very important
 points to note are that the settlement does not require any change in our
 business practices, and that the payment to the plaintiffs amounts to a
 fraction of their legal costs.  We have defended our position vigorously from
 the beginning and are extremely pleased with the outcome of the case."
 Josefowicz also noted that the settlement allows Borders to avoid anticipated
 ongoing expenses relating to the suit.
     Earnings estimates for 2001 will remain unchanged as a result of this
 settlement.  Earnings in the first quarter of 2001 will be negatively impacted
 by about $.02 earnings per share.  This will be offset with earnings
 improvements of $.02 per share, primarily in the second quarter of 2001, due
 to lower future legal costs.
     Headquartered in Ann Arbor, Mich., Borders Group employs 30,000 worldwide
 and operates 335 Borders domestic superstores, 14 international Borders
 stores, 31 Books etc. locations, 869 Waldenbooks stores and Borders.com .
     Information for journalists is available at www.bgimediacenter.com .
 Financial data is hosted on www.bordersgroupinc.com and information on Borders
 stores is available through www.bordersstores.com .
 
 SOURCE  Borders Group, Inc.

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