| [X]            | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE  |
|----------------|----------------------------------------------------------------|
|           | SECURITIES      EXCHANGE ACT OF 1934                           |
|           |                                                           |
|           | For      the quarterly period ended August 2, 2008             |
|           |                                                           |
|           | OR                                                             |
|           |                                                           |
| [  ] | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE |
|           | SECURITIES      EXCHANGE ACT OF 1934                           |

| MICHIGAN                             |   | 38-3294588                     |
|--------------------------------------|--------|--------------------------------|
| (State      or other jurisdiction of |   | (I.R.S.      Employer          |
| incorporation      or organization)  |   | Identification  No.) |

|   | Indicate      by check mark whether the registrant is a shell company (as defined in      Rule 12b-2 of the Act).    Yes   ̈    No  x |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                              |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                              |   |
|                                                                                                                                                                              | Page   |
| Part      I - Financial Information                                                                                                                                               |   |
|                                                                                                                                                                              |   |
|      Item      1.       Financial      Statements                                                                     | 1      |
|      Item      2.       Management's Discussion and      Analysis of                                                  |   |
|                        Financial      Condition and Results of |   |
|                        Operations                              | 12     |
|      Item      3.       Quantitative and Qualitative      Disclosures about                                           |   |
|                         Market      Risk                  | 28     |
|      Item      4.       Controls and      Procedures                                                                  | 28     |
|      Item      4T.    Controls and Procedures                                                                                        | N/A    |
|                                                                                                                                                                              |   |
| Part      II - Other information                                                                                                                                                  |   |
|                                                                                                                                                                              |   |
|      Item      1.       Legal    Proceedings                                                                          | 28     |
|      Item      1A.    Risk Factors                                                                                                   | 28     |
|      Item      2.   Unregistered Sales of Equity Securities and Use of      Proceeds                                                      | 28     |
|      Item      3.       Defaults Upon Senior      Securities                                                          | N/A    |
|      Item      4.       Submission of Matters to a      Vote of                                                       |   |
|                        Security      holders                   | 28     |
|      Item      5.       Other    Information                                                                          | N/A    |
|      Item      6.       Exhibits                                                                                      | 30     |
|                         Signatures                        | 31     |
|                                                                                                                                                                              |   |

----

|                                                                                                                |   | 13      Weeks Ended |      |
|---------------------------------------------------------------------------------------------------------------------|--------|---------------------|-----------|
|                                                                                                                |   | August      2,2008  |      |   | August      4,2007 |   |
| Sales                                                                                                               |   | $                   | 749.2     |   |   | $ | 804.6 |   |
| Other      revenue                                                                                                  |   |                | 9.3       |   |   |   | 7.8 |   |
|    Total      revenue                                                                                |   |                | 758.5     |   |   |   | 812.4 |   |
|                                                                                                                |   |                |      |   |   |   |   |   |
| Cost      of merchandise sold, including occupancy costs                                                            |   |                | 575.7     |   |   |   | 610.0 |   |
|     Gross      margin                                                                           |   |                | 182.8     |   |   |   | 202.4 |   |
|                                                                                                                |   |                |      |   |   |   |   |   |
| Selling,      general and administrative expenses                                                                   |   |                | 204.8     |   |   |   | 221.5 |   |
| Pre-opening      expense                                                                                            |   |                | 1.1       |   |   |   | 1.6 |   |
| Asset      impairments and other writedowns                                                                         |   |                | -         |   |   |   | 0.3 |   |
|    Operating      loss                                                                               |   |                | (23.1     | ) |   |   | (21.0 | ) |
|                                                                                                                |   |                |      |   |   |   |   |   |
| Interest      expense                                                                                               |   |                | 0.2       |   |   |   | 10.3 |   |
|    Loss      before income tax                                                                       |   |                | (23.3     | ) |   |   | (31.3 | ) |
|                                                                                                                |   |                |      |   |   |   |   |   |
| Income      tax benefit                                                                                             |   |                | (12.0     | ) |   |   | (13.2 | ) |
|    Loss      from continuing operations                                                              |   |                | (11.3     | ) |   |   | (18.1 | ) |
|                                                                                                                |   |                |      |   |   |   |   |   |
| Loss      from operations of discontinued operations (net of income tax benefit of      $0.2 and $2.7)              |   |                | (0.5      | ) |   |   | (5.3 | ) |
| Gain      (loss) from disposal of discontinued operations (net of income tax benefit      of $2.8 and $0.8)         |   |                |  2.6 |   |   |   | (1.7 | ) |
|    Income      (loss) from discontinued operations (net of income tax benefit of $3.0 and      $3.5) |   |                |  2.1 |   |   |   | (7.0 | ) |
|                                                                                                                |   |                |      |   |   |   |   |   |
|    Net      loss                                                                                     |   | $                   | (9.2      | ) |   | $ | (25.1 | ) |
|                                                                                                                |   |                |      |   |   |   |   |   |
|                                                                                                                |   |                |      |   |   |   |   |   |
| Loss      per common share data                                                                                     |   |                |      |   |   |   |   |   |
|    Diluted:                                                                                          |   |                |      |   |   |   |   |   |
|       Loss      from continuing operations per common share                           |   | $                   | (0.19     | ) |   | $ | (0.31 | ) |
|       Income      (loss) from discontinued operations per common share                |   | $                   | 0.04      |   |   | $ | (0.12 | ) |
|                                                                                                                |   |                |      |   |   |   |   |   |
|       Net      loss per common share                                                  |   | $                   | (0.15     | ) |   | $ | (0.43 | ) |
|          Weighted      average common shares outstanding (in millions) |   |                | 60.5      |   |   |   | 58.8 |   |
|                                                                                                                |   |                |      |   |   |   |   |   |
|    Basic:                                                                                            |   |                |      |   |   |   |   |   |
|       Loss      from continuing operations per common share                           |   | $                   | (0.19     | ) |   | $ | (0.31 | ) |
|       Income      (loss) from discontinued operations per common share                |   | $                   | 0.04      |   |   | $ | (0.12 | ) |
|                                                                                                                |   |                |      |   |   |   |   |   |
|       Net      loss per common share                                                  |   | $                   | (0.15     | ) |   | $ | (0.43 | ) |
|          Weighted      average common shares outstanding (in millions) |   |                | 60.5      |   |   |   | 58.8 |   |
|                                                                                                                |   |                |      |   |   |   |   |   |
| Dividends      declared per common share                                                                            |   | $                   | -         |   |   | $ | 0.11 |   |

----

|                                                                                                                |   | 26      Weeks Ended |      |
|---------------------------------------------------------------------------------------------------------------------|--------|---------------------|-----------|
|                                                                                                                |   | August      2,2008  |      |   | August      4,2007 |   |
| Sales                                                                                                               |   | $                   | 1,478.7   |   |   | $ | 1,556.0 |   |
| Other      revenue                                                                                                  |   |                | 15.6      |   |   |   | 13.1 |   |
|    Total      revenue                                                                                |   |                | 1,494.3   |   |   |   | 1,569.1 |   |
|                                                                                                                |   |                |      |   |   |   |   |   |
| Cost      of merchandise sold, including occupancy costs                                                            |   |                | 1,142.8   |   |   |   | 1,191.8 |   |
|     Gross      margin                                                                           |   |                | 351.5     |   |   |   | 377.3 |   |
|                                                                                                                |   |                |      |   |   |   |   |   |
| Selling,      general and administrative expenses                                                                   |   |                | 417.4     |   |   |   | 434.3 |   |
| Pre-opening      expense                                                                                            |   |                | 2.1       |   |   |   | 2.5 |   |
| Asset      impairments and other writedowns                                                                         |   |                | -         |   |   |   | 1.2 |   |
|    Operating      loss                                                                               |   |                | (68.0     | ) |   |   | (60.7 | ) |
|                                                                                                                |   |                |      |   |   |   |   |   |
| Interest      expense                                                                                               |   |                | 6.1       |   |   |   | 19.1 |   |
|    Loss      before income tax                                                                       |   |                | (74.1     | ) |   |   | (79.8 | ) |
|                                                                                                                |   |                |      |   |   |   |   |   |
| Income      tax benefit                                                                                             |   |                | (32.7     | ) |   |   | (33.2 | ) |
|    Loss      from continuing operations                                                              |   |                | (41.4     | ) |   |   | (46.6 | ) |
|                                                                                                                |   |                |      |   |   |   |   |   |
| Loss      from operations of discontinued operations (net of income tax benefit of      $0.9 and $5.0)              |   |                | (1.7      | ) |   |   | (11.1 | ) |
| Gain      (loss) from disposal of discontinued operations (net of income tax benefit      of $3.1 and $1.4)         |   |                |  2.2 |   |   |   | (3.3 | ) |
|    Income      (loss) from discontinued operations (net of income tax benefit of $4.0 and      $6.4) |   |                |  0.5 |   |   |   | (14.4 | ) |
|                                                                                                                |   |                |      |   |   |   |   |   |
|    Net      loss                                                                                     |   | $                   | (40.9     | ) |   | $ | (61.0 | ) |
|                                                                                                                |   |                |      |   |   |   |   |   |
|                                                                                                                |   |                |      |   |   |   |   |   |
| Loss      per common share data                                                                                     |   |                |      |   |   |   |   |   |
|    Diluted:                                                                                          |   |                |      |   |   |   |   |   |
|       Loss      from continuing operations per common share                           |   | $                   | (0.69     | ) |   | $ | (0.79 | ) |
|       Income      (loss) from discontinued operations per common share                |   | $                   | 0.01      |   |   | $ | (0.25 | ) |
|                                                                                                                |   |                |      |   |   |   |   |   |
|       Net      loss per common share                                                  |   | $                   | (0.68     | ) |   | $ | (1.04 | ) |
|          Weighted      average common shares outstanding (in millions) |   |                | 60.0      |   |   |   | 58.7 |   |
|                                                                                                                |   |                |      |   |   |   |   |   |
|    Basic:                                                                                            |   |                |      |   |   |   |   |   |
|       Loss      from continuing operations per common share                           |   | $                   | (0.69     | ) |   | $ | (0.79 | ) |
|       Income      (loss) from discontinued operations per common share                |   | $                   | 0.01      |   |   | $ | (0.25 | ) |
|                                                                                                                |   |                |      |   |   |   |   |   |
|       Net      loss per common share                                                  |   | $                   | (0.68     | ) |   | $ | (1.04 | ) |
|          Weighted      average common shares outstanding (in millions) |   |                | 60.0      |   |   |   | 58.7 |   |
|                                                                                                                |   |                |      |   |   |   |   |   |
| Dividends      declared per common share                                                                            |   | $                   | -         |   |   | $ | 0.22 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |               |               |   |               |   |               |                 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------------------|--------|--------------------|--------|--------------------|----------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | August      2,2008 |               |   | August      4,2007 |   |               | February      2,2008 |   |
| Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |               |               |   |               |   |               |                 |   |
| Current      assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |               |               |   |               |   |               |                 |   |
|    Cash      and cash      equivalents                                                                                                                                 |   | $                  | 43.9               |   |               | $      | 68.6               |                 |   | $ | 58.5 |   |
|    Merchandise      inventories                                                                                                                                        |   |               | 1,090.3            |   |               |   | 1,272.0            |                 |   |   | 1,242.0 |   |
|    Accounts      receivable and other current      assets                                                                                                              |   |               | 118.1              |   |               |   | 104.6              |                 |   |   | 103.5 |   |
|    Current      assets of discontinued      operations                                                                                                                 |   |               | -                  |   |               |   | 215.8              |                 |   |   | 102.0 |   |
|          Total      current      assets                                                                                                  |   |               | 1,252.3            |   |               |   | 1,661.0            |                 |   |   | 1,506.0 |   |
| Property      and equipment, net of accumulated depreciation of $1,052.7,      $931.4 and $1,007.8 at August 2, 2008, August 4,   2007 and      February 2, 2008, respectively                                                                                                                                                                                                                                                                                                                                                                                          |   |               |    584.5 |   |               |   |    590.7 |                 |   |   |   592.8 |   |
| Other      assets                                                                                                                                                                     |   |               | 65.7               |   |               |   | 64.5               |                 |   |   | 64.9 |   |
| Deferred      income      taxes                                                                                                                                                       |   |               | 48.9               |   |               |   | 48.1               |                 |   |   | 44.9 |   |
| Goodwill                                                                                                                                                                              |   |               | 40.5               |   |               |   | 40.3               |                 |   |   | 40.5 |   |
| Noncurrent      assets of discontinued      operations                                                                                                                                |   |               | -                  |   |               |   | 177.3              |                 |   |   | 53.6 |   |
|          Total      assets                                                                                                               |   | $                  | 1,991.9            |   |               | $      | 2,581.9            |                 |   | $ | 2,302.7 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |               |               |   |               |   |               |                 |   |   |   |   |
|            Liabilities, Minority Interest      and Stockholders’ Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |               |               |   |               |   |               |                 |   |   |   |   |
| Current      liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |               |               |   |               |   |               |                 |   |   |   |   |
|    Short-term      borrowings and current portion of long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $                  | 459.4              |   |               | $      | 691.0              |                 |   | $ | 548.6 |   |
|    Trade      accounts      payable                                                                                                                                    |   |               | 469.2              |   |               |   | 433.7              |                 |   |   | 511.9 |   |
|    Accrued      payroll and other      liabilities                                                                                                                     |   |               | 245.9              |   |               |   | 282.0              |                 |   |   | 321.6 |   |
|    Taxes,      including income      taxes                                                                                                                             |   |               | 9.1                |   |               |   | 13.0               |                 |   |   | 18.3 |   |
|    Deferred      income      taxes                                                                                                                                     |   |               | 13.4               |   |               |   | 16.4               |                 |   |   | 9.9 |   |
|    Current      liabilities of discontinued      operations                                                                                                            |   |               | -                  |   |               |   | 175.4              |                 |   |   | 57.5 |   |
|          Total      current      liabilities                                                                                             |   |               | 1,197.0            |   |               |   | 1,611.5            |                 |   |   | 1,467.8 |   |
| Long-term      debt                                                                                                                                                                   |   |               | 6.3                |   |               |   | 5.1                |                 |   |   | 5.4 |   |
| Other      long-term      liabilities                                                                                                                                                 |   |               | 363.9              |   |               |   | 312.4              |                 |   |   | 325.0 |   |
| Noncurrent      liabilities of discontinued operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |               | -                  |   |               |   | 76.5               |                 |   |   | 25.4 |   |
|          Total      liabilities                                                                                                          |   |               | 1,567.2            |   |               |   | 2,005.5            |                 |   |   | 1,823.6 |   |
| Minority      interest                                                                                                                                                                |   |               | 2.2                |   |               |   | 2.1                |                 |   |   | 2.2 |   |
|          Total      liabilities and minority      interest                                                                               |   |               | 1,569.4            |   |               |   | 2,007.6            |                 |   |   | 1,825.8 |   |
| Stockholders'      equity:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |               |               |   |               |   |               |                 |   |   |   |   |
| Common      stock; 300,000,000 shares authorized;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |               |               |   |               |   |               |                 |   |   |   |   |
|   60,538,934      , 58,827,986 and 58,794,224 shares issued                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |               |               |   |               |   |               |                 |   |   |   |   |
|    and      outstanding at August 2, 2008, August 4, 2007 and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |               |               |   |               |   |               |                 |   |   |   |   |
|    February      2, 2008,      respectively                                                                                                                            |   |               | 187.6              |   |               |   | 181.4              |                 |   |   | 184.0 |   |
| Accumulated      other comprehensive      income                                                                                                                                      |   |               | 25.3               |   |               |   | 33.1               |                 |   |   | 42.4 |   |
| Retained      earnings                                                                                                                                                                |   |               | 209.6              |   |               |   | 359.8              |                 |   |   | 250.5 |   |
|          Total      stockholders'      equity                                                                                            |   |               | 422.5              |   |               |   | 574.3              |                 |   |   | 476.9 |   |
|          Total      liabilities, minority interest and stockholders' equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $                  | 1,991.9            |   |               | $      | 2,581.9            |                 |   | $ | 2,302.7 |   |

----

|                                                                                                                                                                                                                                                                            |                                      |                                                                                    |                             |                           |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------|-----------------------------------------------------------------------------------------|----------------------------------|--------------------------------|
|                                                                                                                                                                                                                                                                            |     Common      Stock |   AccumulatedOtherComprehensive                                               |     Retained |                           |
|                                                                                                                                                                                                                                                                            | Shares                                    | Amount                                                                                  | Income                           | Earnings                       | Total |
| Balance      at February 2,      2008                                        |         58,794,224              | $  184.0                                                                      | $42.4                            | $      250.5                   | $      476.9 |
| Net      loss                                                                | -                                         |      -                                                         |   -                    |     (40.9) |    (40.9) |
|  Discontinued      operations currency translation adjustment                                                                                                                                                                                                              | -                                         |      -                                                         |     (17.1)   |   -                  |    (17.1) |
| Comprehensive      loss                                                      |                                      |                                                                                    |                             |                           |   (58.0) |
| Issuance      of common      stock                                           |           1,744,710   |               3.4 |   -                    |   -                  |   3.4 |
| Tax      benefit of equity compensation                                                                                                                                                                                                                                         | -                                         |               0.2 |   -                    |   -                  |   0.2 |
| Balance      at August 2,      2008                                          |    60,538,934              | $    187.6                                                          | $      25.3                      | $    209.6 |   $                 422.5 |
|                                                                                                                                                                                                                                                                            |                                      |                                                                                    |                             |                           |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 26      weeks Ended |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | August      2,2008  |   |   | August      4,2007 |   |
| Cash      provided by (used for):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                |   |   |   |   |
|    Net      loss                                                                                                                                                                                                                                         |   | $                   | (40.9  | ) |   | $ | (61.0 | ) |
|    Net      income (loss) from discontinued      operations                                                                                                                                                                                              |   |                | 0.5    |   |   |   | (14.4 | ) |
|    Net      loss from continuing      operations                                                                                                                                                                                                         |   |                | (41.4  | ) |   |   | (46.6 | ) |
| Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                |   |   |   |   |   |   |
|    Adjustments      to reconcile loss from continuing operations to   operating      cash flows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                |   |   |   |   |   |   |
|       Depreciation                                                                                                                                                                                                                        |   |                | 54.7   |   |   |   | 48.5 |   |
|       Loss      on disposal of      assets                                                                                                                                                                                                |   |                | 1.0    |   |   |   | - |   |
|       Increase      in deferred income      taxes                                                                                                                                                                                         |   |                | (0.5   | ) |   |   | (2.9 | ) |
|       (Increase)      decrease in other long-term      assets                                                                                                                                                                             |   |                | (0.9   | ) |   |   | 0.9 |   |
|       Increase      in other long-term      liabilities                                                                                                                                                                                   |   |                | 0.3    |   |   |   | 4.1 |   |
|    Cash      provided by (used for) current assets and current    liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                |   |   |   |   |   |   |
|       Decrease      in      inventories                                                                                                                                                                                                   |   |                | 151.6  |   |   |   | 21.9 |   |
|       Decrease      in accounts      receivable                                                                                                                                                                                           |   |                | 9.4    |   |   |   | 22.3 |   |
|       Increase      in prepaid      expenses                                                                                                                                                                                              |   |                | (5.8   | ) |   |   | (0.1 | ) |
|       Decrease      in trade accounts      payable                                                                                                                                                                                        |   |                | (42.7  | ) |   |   | (137.5 | ) |
|       Decrease      in taxes      payable                                                                                                                                                                                                 |   |                | (9.2   | ) |   |   | (49.1 | ) |
|       Decrease      in expenses payable and accrued liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                | (65.8  | ) |   |   | (6.5 | ) |
|         Net      cash provided by (used for) operating activities ofcontinuing        Operations                                                                                        |   |                | 50.7   |   |   |   | (145.0 | ) |
| Investing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                |   |   |   |   |   |   |
|    Capital      expenditures                                                                                                                                                                                                                             |   |                | (54.1  | ) |   |   | (66.6 | ) |
|     Proceeds      from the sale of discontinued      operations                                                                                                                                                                                     |   |                | 87.9   |   |   |   | - |   |
|         Net      cash provided by (used for) investing activities ofcontinuing        Operations                                                                                        |   |                | 33.8   |   |   |   | (66.6 | ) |
| Financing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                |   |   |   |   |   |   |
|    Proceeds      from the excess tax benefit of stock option exercises                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                | 0.2    |   |   |   | 0.3 |   |
|    Net      funding from (repayment of) credit      facility                                                                                                                                                                                             |   |                | (126.1 | ) |   |   | 182.9 |   |
|    Funding      from short-term note      financing                                                                                                                                                                                                      |   |                | 42.5   |   |   |   | - |   |
|    Issuance      of long-term      debt                                                                                                                                                                                                                  |   |                | 1.1    |   |   |   | - |   |
|    Repayment      of long-term      debt                                                                                                                                                                                                                 |   |                | (0.4   | ) |   |   | (0.2 | ) |
|    Issuance      of common      stock                                                                                                                                                                                                                    |   |                | 3.4    |   |   |   | 5.6 |   |
|    Payment      of cash      dividends                                                                                                                                                                                                                   |   |                | (6.5   | ) |   |   | (13.0 | ) |
|       Net      cash provided by (used for) financing activities ofcontinuing       Operations                                                                                                          |   |                | (85.8  | ) |   |   |  175.6 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                |   |   |   |   |   |   |
| Effect      of exchange rates on cash and cash equivalents of continuing      operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                | 0.1    |   |   |   | (3.0 | ) |
| Net      cash provided by (used for) operating activities of discontinued      operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                | (9.7   | ) |   |   |  15.2 |   |
| Net      cash used for investing activities of discontinued    operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                | (6.5   | ) |   |   | (8.1 | ) |
| Net      cash provided by financing activities of discontinued      operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                | -      |   |   |   | 0.2 |   |
| Effect      of exchange rates on cash and cash equivalents of discontinued      operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                | 2.8    |   |   |   |  2.7 |   |
| Net      cash provided by (used for) discontinued operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                | (13.4  | ) |   |   | 10.0 |   |
| Net      decrease in cash and cash      equivalents                                                                                                                                                                                                                     |   |                | (14.6  | ) |   |   | (29.0 | ) |
| Cash      and cash equivalents at beginning of      year                                                                                                                                                                                                                |   |                | 58.5   |   |   |   | 97.6 |   |
| Cash      and cash equivalents at end of      period                                                                                                                                                                                                                    |   | $                   | 43.9   |   |   | $ | 68.6 |   |

----

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 13      Weeks Ended |   |   | 26      Weeks Ended |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|---------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | August      2,2008  |   |   | August      4,2007  |   |   | August      2,2008 |   |   | August      4,2007 |   |
| Sales                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                |   |   |                |   |   |   |   |   |   |   |
|       Domestic      Borders      Superstores                                                           |   | $                   | 621.9  |   |                | $      | 658.6 |   |   | $ | 1,222.6 |   |   | $ | 1,273.6 |   |
|       Waldenbooks      Specialty      Retail                                                           |   |                | 96.9   |   |                |   | 116.7 |   |   |   | 192.9 |   |   |   | 224.8 |   |
|       International                                                                                    |   |                | 30.4   |   |                |   | 29.3 |   |   |   | 63.2 |   |   |   | 57.6 |   |
| Total      sales                                                                                                                     |   | $                   | 749.2  |   |                | $      | 804.6 |   |   | $ | 1,478.7 |   |   | $ | 1,556.0 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Operating      income (loss)                                                                                                                                                                                                                                                                                                                                                                                                           |   |                |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
|       Domestic      Borders      Superstores                                                           |   | $                   | (7.7   | )      |                | $      | (2.9 | ) |   | $ | (37.7 | ) |   | $ | (24.9 | ) |
|       Waldenbooks      Specialty      Retail                                                           |   |                | (7.7   | )      |                |   | (12.4 | ) |   |   | (21.3 | ) |   |   | (26.4 | ) |
|       International                                                                                    |   |                | (1.4   | )      |                |   | (0.5 | ) |   |   | - |   |   |   | (1.1 | ) |
|       Corporate                                                                                        |   |                | (6.3   | )      |                |   | (5.2 | ) |   |   | (9.0 | ) |   |   | (8.3 | ) |
| Total      operating income      (loss)                                                                                              |   | $                   | (23.1  | )      |                | $      | (21.0 | ) |   | $ | (68.0 | ) |   | $ | (60.7 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Total      assets                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
|       Domestic      Borders      Superstores                                                           |   |                |   |   |                |   |   |   |   | $ | 1,563.8 |   |   | $ | 1,689.9 |   |
|       Waldenbooks      Specialty      Retail                                                           |   |                |   |   |                |   |   |   |   |   | 258.4 |   |   |   | 315.2 |   |
|       International                                                                                    |   |                |   |   |                |   |   |   |   |   | 83.9 |   |   |   | 73.4 |   |
|       Corporate                                                                                        |   |                |   |   |                |   |   |   |   |   | 85.8 |   |   |   | 110.3 |   |
| Total      assets of continuing operations                                                                                                                                                                                                                                                                                                                                                                                             |   |                |   |   |                |   |   |   |   | $ | 1,991.9 |   |   | $ | 2,188.8 |   |
|       Discontinued      operations                                                                     |   |                |   |   |                |   |   |   |   |   | - |   |   |   | 393.1 |   |
| Total      assets                                                                                                                    |   |                |   |   |                |   |   |   |   | $ | 1,991.9 |   |   | $ | 2,581.9 |   |

|                                                                                                                                                                                                                                                                                                                                      |   | 13      Weeks Ended |   |   | 26      Weeks Ended |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|---------------------|--------|
|                                                                                                                                                                                                                                                                                                                                      |   | August      2,2008  |   |   | August      4,2007  |   |   | August      2,2008 |   |   | August      4,2007 |   |
|       Domestic      Borders Superstores                                                                                                                                                                                                                                                                     |   | $                   | 1.9    |   |                | $      | 2.7 |   |   | $ | 3.7 |   |   | $ | 5.5 |   |
|       Waldenbooks      Specialty Retail                                                                                                                                                                                                                                                                     |   |                | 0.5    |   |                |   | - |   |   |   | 0.9 |   |   |   | - |   |
| Total                                                       |   | $                   | 2.4    |   |                | $      | 2.7 |   |   | $ | 4.6 |   |   | $ | 5.5 |   |

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 13      Weeks Ended |             | 26      weeks Ended |   |               |   |               |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|------------------|---------------------|--------|--------------------|--------|--------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | August      2,2008  |             | August      4,2007  |   | August      2,2008 |   | August      4,2007 |   |   |   |   |
| Total      revenue                                                                                                                          |   | $                   | 24.1             |                | $      | 144.3              |   | $                  | 80.8 |   | $ | 273.4 |   |   |   |   |
| Loss      from operations of discontinued operations before income      tax                                                                 |   |                | (0.7)            |                |   | (8.0               | )      |               | (2.6 | ) |   | (16.1 | ) |   |   |   |
| Income      (loss) from operations of discontinued operations (net of income tax      benefit of $0.2, $2.7, $0.9, and $5.0, respectively)                                                                                                                                                                                                                                                                                                                                       |   |                | (0.5)            |                |   | (5.3               | )      |               | (1.7 | ) |   | (11.1 | ) |   |   |   |
| Gain      (loss) on disposal of discontinued operations (net of income tax benefit      $2.8, $0.8, $3.1, and $1.4, respectively)                                                                                                                                                                                                                                                                                                                                                |   |                |    2.6 |                |   | (1.7               | )      |               |    2.2 |   |   | (3.3 | ) |   |   |   |
| Income      (loss) from discontinued operations (net of income tax benefit of $3.0,      $3.5, $4.0, and $6.4, respectively)                                                                                                                                                                                                                                                                                                                                                     |   |                |  2.1        |                |   | (7.0               | )      |               |  0.5 |   |   | (14.4 | ) |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                |             |                |   |               |   |               |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | August 4,2007  |             |
| Cash      and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $                   | 6.9              |                |
| Merchandise      inventories                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                | 166.6            |                |
| Accounts      receivable and other current assets                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                | 42.3             |                |
| Current      assets of discontinued operations                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                | 215.8            |                |
| Property      and equipment (net of accumulated depreciation)                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                | 143.5            |                |
| Other      assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                | 33.8             |                |
| Noncurrent      assets of discontinued operations                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                | 177.3            |                |
| Short-term      borrowings and current portion of long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                | 42.3             |                |
| Accounts      payable                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                | 77.0             |                |
| Accrued      payroll and other liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                | 46.7             |                |
| Other      liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                | 9.4              |                |
| Current      liabilities of discontinued operations                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                | 175.4            |                |
| Long-term      liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                | 76.5             |                |
| Noncurrent      liabilities of discontinued operations                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $                   | 76.5             |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                |             |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                |             |                |

----

----

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 13      Weeks Ended |   |   | 26      Weeks Ended |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|---------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | August      2, 2008 |   |   | August      4, 2007 |   |   | August      2, 2008 |   |   | August      4, 2007 |   |
| Sales                                                                                                                 |   |                | 100.0  | %      |                |   | 100.0 | % |   |   | 100.0 | % |   |   | 100.0 | % |
| Other      revenue                                                                                                    |   |                | 1.2    |   |                |   | 1.0 |   |   |   | 1.1 |   |   |   | 0.8 |   |
|   Total      revenue                                                                                        |   |                | 101.2  |   |                |   | 101.0 |   |   |   | 101.1 |   |   |   | 100.8 |   |
| Cost      of merchandise sold (includes occupancy)                                                                                                                                                                                                                                                                                                                                                                                                    |   |                | 76.8   |   |                |   | 75.8 |   |   |   | 77.3 |   |   |   | 76.6 |   |
|   Gross      margin                                                                                         |   |                | 24.4   |   |                |   | 25.2 |   |   |   | 23.8 |   |   |   | 24.2 |   |
| Selling,      general and administrative expenses                                                                                                                                                                                                                                                                                                                                                                                                     |   |                | 27.3   |   |                |   | 27.5 |   |   |   | 28.2 |   |   |   | 27.9 |   |
| Pre-opening      expense                                                                                              |   |                | 0.2    |   |                |   | 0.3 |   |   |   | 0.2 |   |   |   | 0.2 |   |
| Asset      impairments and other writedowns                                                                                                                                                                                                                                                                                                                                                                                                           |   |                | -      |   |                |   | - |   |   |   | - |   |   |   | 0.1 |   |
|   Operating      loss                                                                                       |   |                | (3.1   | )      |                |   | (2.6 | ) |   |   | (4.6 | ) |   |   | (4.0 | ) |
| Interest      expense                                                                                                 |   |                | -      |   |                |   | 1.3 |   |   |   | 0.4 |   |   |   | 1.1 |   |
|   Loss      before income      tax                                                                          |   |                | (3.1   | )      |                |   | (3.9 | ) |   |   | (5.0 | ) |   |   | (5.1 | ) |
| Income      tax      benefit                                                                                          |   |                | (1.6   | )      |                |   | (1.7 | ) |   |   | (2.2 | ) |   |   | (2.1 | ) |
|   Loss      from continuing      operations                                                                 |   |                | (1.5   | )%     |                |   | (2.2 | )% |   |   | (2.8 | )% |   |   | (3.0 | )% |

----

----

----

----

|                                                                                                                                                                                                                                                                                                                            |   | 13      Weeks Ended |   |   | 26      Weeks Ended |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|---------------------|--------|
| (dollar      amounts in millions)                                                                                                                                                                                                                                                                                               |   | August      2, 2008 |   |   | August      4, 2007 |   |   | August      2, 2008 |   |   | August      4, 2007 |   |
| Sales                                                                 |   | $                   | 621.9  |   |                | $      | 658.6 |   |   | $ | 1,222.6 |   |   | $ | 1,273.6 |   |
| Other      revenue                                                    |   | $                   | 7.7    |   |                | $      | 7.3 |   |   | $ | 12.7 |   |   | $ | 12.2 |   |
| Operating      loss                                                   |   | $                   | (7.7   | )      |                | $      | (2.9 | ) |   | $ | (37.7 | ) |   | $ | (24.9 | ) |
| Operating      income (loss) as % of sales                                                                                                                                                                                                                                                                                      |   |                | (1.2   | )%     |                |   | (0.4 | )% |   |   | (3.1 | )% |   |   | (2.0 | )% |
| Store      openings                                                   |   |                | 4      |   |                |   | 4 |   |   |   | 9 |   |   |   | 8 |   |
| Store      closings                                                   |   |                | -      |   |                |   | - |   |   |   | - |   |   |   | 1 |   |
| Store      count                                                      |   |                | 518    |   |                |   | 506 |   |   |   | 518 |   |   |   | 506 |   |

----

----

|                                                                                                                                                                                                                                                                                                                            |   | 13      Weeks Ended |   |   | 26      Weeks Ended |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|---------------------|--------|
| (dollar      amounts in millions)                                                                                                                                                                                                                                                                                               |   | August      2, 2008 |   |   | August      4, 2007 |   |   | August      2, 2008 |   |   | August      4, 2007 |   |
| Sales                                                                 |   | $                   | 96.9   |   |                | $      | 116.7 |   |   | $ | 192.9 |   |   | $ | 224.8 |   |
| Other      revenue                                                    |   | $                   | 0.6    |   |                | $      | 0.5 |   |   | $ | 1.0 |   |   | $ | 0.9 |   |
| Operating      loss                                                   |   | $                   | (7.7   | )      |                | $      | (12.4 | ) |   | $ | (21.3 | ) |   | $ | (26.4 | ) |
| Operating      income (loss) as % of sales                                                                                                                                                                                                                                                                                      |   |                | (7.9   | )%     |                |   | (10.6 | )% |   |   | (11.0 | )% |   |   | (11.7 | )% |
| Store      openings                                                   |   |                | -      |   |                |   | - |   |   |   | - |   |   |   | 1 |   |
| Store      closings                                                   |   |                | 8      |   |                |   | 21 |   |   |   | 22 |   |   |   | 32 |   |
| Store      count                                                      |   |                | 468    |   |                |   | 532 |   |   |   | 468 |   |   |   | 532 |   |

----

----

|                                                                                                                                                                                                                                                                                                                                 |   | 13      Weeks Ended |   |   | 26      Weeks Ended |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|---------------------|--------|
| (dollar      amounts in millions)                                                                                                                                                                                                                                                                                                    |   | August      2, 2008 |   |   | August      4, 2007 |   |   | August      2, 2008 |   |   | August      4, 2007 |   |
| Sales                                                                      |   | $                   | 30.4   |   |                | $      | 29.3 |   |   | $ | 63.2 |   |   | $ | 57.6 |   |
| Other      revenue                                                         |   | $                   | 1.0    |   |                | $      | - |   |   | $ | 1.9 |   |   | $ | - |   |
| Operating      loss                                                        |   | $                   | (1.4   | )      |                | $      | (0.5 | ) |   | $ | - |   |   | $ | (1.1 | ) |
| Operating      income (loss) as % of sales                                                                                                                                                                                                                                                                                           |   |                | (4.6   | )%     |                |   | (1.7 | )% |   |   | - | % |   |   | (1.9 | )% |
| Superstore      openings                                                   |   |                | -      |   |                |   | - |   |   |   | - |   |   |   | - |   |
| Superstore      closings                                                   |   |                | -      |   |                |   | - |   |   |   | - |   |   |   | - |   |
| Superstore      count                                                      |   |                | 3      |   |                |   | 3 |   |   |   | 3 |   |   |   | 3 |   |

----

----

|                                                                                                                                                                                                                      |   | 13      Weeks Ended |   |   | 26      Weeks Ended |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|---------------------|--------|
| (dollar      amounts in millions)                                                                                                                                                                                         |   | August      2, 2008 |   |   | August      4, 2007 |   |   | August      2, 2008 |   |   | August      4, 2007 |   |
| Operating      loss                                  |   | $                   | (6.3   | )      |                | $      | (5.2 | ) |   | $ | (9.0 | ) |   | $ | (8.3 | ) |

----

----

----

----

----

| 1. | The      following individuals were elected to serve as directors for one year      terms expiring in 2009: |
|----|-------------------------------------------------------------------------------------------------------------|

----

|             Name                      |          For                | Withheld                    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------|
| Michael      G. Archbold                                                                                                                                                                                   |          47,179,696                                                                                    |        1,144,671                                                                        |
| Donald      G. Campbell                                                                                                                                                                                    |          47,601,023                                                                                    |           723,344                                                        |
| Joel      J. Cohen                                                                                                                                                                                         |          46,373,656                                                                                    |        1,950,711                                                                        |
| George      L. Jones                                                                                                                                                                                       |          46,934,461                                                                                    |        1,389,906                                                                        |
| Amy      B. Lane                                                                                                                                                                                           |          47,587,762                                                                                    |           736,605                                                        |
| Brian      T. Light                                                                                                                                                                                        |          47,602,579                                                                                    |           721,788                                                        |
| Victor      L. Lund                                                                                                                                                                                        |          46,111,938                                                                                    |        2,212,429                                                                        |
| Richard      McGuire                                                                                                                                                                                       |          47,366,278                                                                                    |           958,089                                                        |
| Dr.      Edna Greene Medford                                                                                                                                                                               |          44,188,483                                                                                    |        4,135,884                                                                        |
| Lawrence      I. Pollock                                                                                                                                                                                   |          47,152,655                                                                                    |        1,171,712                                                                        |
| Michael      Weiss                                                                                                                                                                                         |          46,702,139                                                                                    |        1,622,228                                                                        |

| For                   | 47,744,044      Shares                                                                                        |
|-----------------------|---------------------------------------------------------------------------------------------------------------|
| Against               |      543,672      Shares                                                             |
| Abstain               |        36,651      Shares                                                  |
| Broker      Non-Votes |                 0      Shares |

| For                   | 38,245,779      Shares                            |
|-----------------------|---------------------------------------------------|
| Against               |      589,607      Shares |
| Abstain               |      233,932      Shares |
| Broker      Non-Votes |   9,255,048      Shares                 |

| For                   |   7,149,571      Shares                            |
|-----------------------|--------------------------------------------------------------|
| Against               | 31,845,349      Shares                                       |
| Abstain               |        74,399      Shares |
| Broker      Non-Votes |   9,255,048      Shares                            |

----

|  3.1(1)                                                     | Restated      Articles of Incorporation of Borders Group, Inc.                                                                                                                                                                                              |
|------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  3.2(2)                                                     | Amendment      to the Restated Articles of Incorporation of Borders Group,      Inc.                                                                                                                                                                        |
|  3.3(3)                                                     | Restated      bylaws of Borders Group, Inc.                                                                                                                                                                                                                 |
|  3.4(4)                                                     | First      Amendment to the Restated By laws of Borders Group,Inc.                                                                                                                                                                                          |
|  3.5(2)                                                     | Second      Amendment to the Restated By laws of Borders Group,Inc.                                                                                                                                                                                         |
|  3.6(5)                                                     | Third      Amendment to the Restated By laws of Borders Group,Inc.                                                                                                                                                                                          |
|  3.7(6)                                                     | Fourth      Amendment to the Restated By laws of Borders Group,Inc.                                                                                                                                                                                         |
| 10.39(7)                                                         | Sale      and Purchase Agreement between Borders Group, Inc., A&R Whitcoulls      Group Holdings Pty Limited, Spine Newco (NZ) Limited and Spine Newco Pty      Limited.                                                                                |
| 10.40(7)                                                         | Brand      License Deed between Borders Properties, Inc. and Spine Newco Pty      Limited.                                                                                                                                                                  |
| 10.41(7)                                                         | Purchasing      Agreement between Borders Group, Inc., Borders Australia Pty Limited,      Borders New Zealand Limited, Borders Pte. Limited, Spine Newco Pty      Limited, Spine Newco (NZ) Limited and A&R Witcoulls Group Holdings Pty      Limited. |
| 10.42(7)                                                         | Transition      Services Agreement between Borders International Services, Inc., Borders      Australia Pty Limited, Borders New Zealand Limited, Borders Pte. Limited,      Spine Newco Pty Limited, and Spine Newco (NZ) Limited.                         |
|              10.49            | Non-Qualified      Deferred Compensation Plan for Directors of Borders Group,      Inc.                                                                                                                                                                     |
|                31.1 | Statement      of George L. Jones, President and Chief Executive Officer of Borders      Group, Inc. pursuant to Section 302 of the Sarbanes-Oxley Act of      2002                                                                                         |
|                31.2 | Statement      of Edward W. Wilhelm, Executive Vice President and Chief Financial Officer      of Borders Group, Inc. pursuant to Section 302 of the Sarbanes-Oxley Act      of 2002                                                                        |
|           32.1 | Statement      of George L. Jones, President and Chief Executive Officer of Borders      Group, Inc. pursuant to Section 906 of the Sarbanes-Oxley Act of      2002                                                                                         |
|                32.2 | Statement      of Edward W. Wilhelm, Executive Vice President and Chief Financial Officer      of Borders Group, Inc. pursuant to Section 906 of the Sarbanes-Oxley Act      of 2002                                                                        |
|                                                             |                                                                                                                                                                                                                                                        |
| (1)                                                              | Incorporated      by reference from the Company’s Annual Report on Form 10-K dated January      24, 1999 (File No. 1-13740).                                                                                                                          |
| (2)                                                              | Incorporated      by reference from the Company’s Current Report on Form 8-K dated May 25,      2007 (File No. 1-13740).                                                                                                                              |
| (3)                                                              | Incorporated      by reference from the Company’s Annual Report on Form 10-K dated January      24, 2001 (File No. 1-13740).                                                                                                                          |
| (4)                                                              | Incorporated      by reference from the Company’s Current Report on Form 8-K dated July 13,      2006 (File No. 1-13740).                                                                                                                             |
| (5)                                                              | Incorporated      by reference from the Company’s Current Report on Form 8-K dated October      2, 2007 (File No. 1-13740).                                                                                                                           |
| (6)                                                              | Incorporated      by reference from the Company’s Current Report on Form 8-K dated January      17, 2008 (File No. 1-13740).                                                                                                                          |
| (7)                                                              | Incorporated      by reference from the Company’s Current Report on Form 8-K dated June 4,      2008 (File No. 1-13740).                                                                                                                              |

----

| Date:    September      5, 2008 | By:/s/ Edward W.      Wilhelm |
|-----------------------------------------------------|-------------------------------|