| [X]            |                                                   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OFTHE                                                                                                                                                                                                                                                                                                  |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|           |                                                                   SECURITIES      EXCHANGE ACT OF 1934                                                                                                                                                                                       |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|           |                                                                         For the quarterly period ended May 3, 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 |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                                                                                                              |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                              |   |
|                                                                                                                                                                              | 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                  | 22     |
|      Item      4.       Controls and      Procedures                                                                  | 22     |
|                                                                                                                                                                              |   |
| Part      II - Other information                                                                                                                                                  |   |
|                                                                                                                                                                              |   |
|      Item      1.       Legal    Proceedings                                                                          | 22     |
|      Item      1A.    Risk Factors                                                                                                   | 22     |
|      Item      2.   Unregistered Sales of Equity Securities and Use of      Proceeds                                                      | 23     |
|      Item      3.       Defaults Upon Senior      Securities                                                          | N/A    |
|      Item      4.       Submission of Matters to a      Vote of                                                       |   |
|                        Security      holders                   | N/A    |
|      Item      4T.    Controls and Procedures                                                                                        | N/A    |
|      Item      5.       Other    Information                                                                          | N/A    |
|      Item      6.       Exhibits                                                                                      | 23     |
|                                                                                                                                                                              |   |
| Signatures                                                                                                                                                                        | 24     |

----

|                                                                                                                |   | 13      Weeks Ended |    |
|---------------------------------------------------------------------------------------------------------------------|--------|---------------------|---------|
|                                                                                                                |   | May      3,2008     |    |   | May 5,2007 |   |
| Sales                                                                                                               |   | $                   | 784.7   |   |   | $ | 792.3 |   |
| Other      revenue                                                                                                  |   |                | 7.8     |   |   |   | 6.4 |   |
|    Total      revenue                                                                                |   |                | 792.5   |   |   |   | 798.7 |   |
|                                                                                                                |   |                |    |   |   |   |   |   |
| Cost      of merchandise sold, including occupancy costs                                                            |   |                | 611.8   |   |   |   | 613.8 |   |
|     Gross      margin                                                                           |   |                | 180.7   |   |   |   | 184.9 |   |
|                                                                                                                |   |                |    |   |   |   |   |   |
| Selling,      general and administrative expenses                                                                   |   |                | 227.1   |   |   |   | 222.8 |   |
| Pre-opening      expense                                                                                            |   |                | 1.2     |   |   |   | 1.3 |   |
| Asset      impairments and other writedowns                                                                         |   |                | -       |   |   |   | 0.9 |   |
|    Operating      loss                                                                               |   |                | (47.6   | ) |   |   | (40.1 | ) |
|                                                                                                                |   |                |    |   |   |   |   |   |
| Interest      expense                                                                                               |   |                | 5.7     |   |   |   | 9.3 |   |
|    Loss      before income tax                                                                       |   |                | (53.3   | ) |   |   | (49.4 | ) |
|                                                                                                                |   |                |    |   |   |   |   |   |
| Income      tax benefit                                                                                             |   |                | (21.6   | ) |   |   | (20.3 | ) |
|    Loss      from continuing operations                                                              |   |                | (31.7   | ) |   |   | (29.1 | ) |
|                                                                                                                |   |                |    |   |   |   |   |   |
| Loss      from operations of discontinued operations (net of income tax benefit of      $- and $2.2)                |   |                |  - |   |   |   | (5.4 | ) |
| Loss      from disposal of discontinued operations (net of income tax benefit of $-      and $ 0.6)                 |   |                |  - |   |   |   | (1.4 | ) |
|    Loss      from discontinued operations (net of income tax benefit of $- and      $2.8)            |   |                |  - |   |   |   | (6.8 | ) |
|                                                                                                                |   |                |    |   |   |   |   |   |
|    Net      loss                                                                                     |   | $                   | (31.7   | ) |   | $ | (35.9 | ) |
|                                                                                                                |   |                |    |   |   |   |   |   |
|                                                                                                                |   |                |    |   |   |   |   |   |
| Loss      per common share data                                                                                     |   |                |    |   |   |   |   |   |
|    Diluted:                                                                                          |   |                |    |   |   |   |   |   |
|       Loss      from continuing operations per common share                           |   | $                   | (0.53   | ) |   | $ | (0.50 | ) |
|       Loss      from discontinued operations per common share                         |   | $                   | -       |   |   | $ | (0.11 | ) |
|                                                                                                                |   |                |    |   |   |   |   |   |
|       Net      loss per common share                                                  |   | $                   | (0.53   | ) |   | $ | (0.61 | ) |
|          Weighted      average common shares outstanding (in millions) |   |                | 59.4    |   |   |   | 58.6 |   |
|                                                                                                                |   |                |    |   |   |   |   |   |
|    Basic:                                                                                            |   |                |    |   |   |   |   |   |
|       Loss      from continuing operations per common share                           |   | $                   | (0.53   | ) |   | $ | (0.50 | ) |
|       Loss      from discontinued operations per common share                         |   | $                   | -       |   |   | $ | (0.11 | ) |
|                                                                                                                |   |                |    |   |   |   |   |   |
|       Net      loss per common share                                                  |   | $                   | (0.53   | ) |   | $ | (0.61 | ) |
|          Weighted      average common shares outstanding (in millions) |   |                | 59.4    |   |   |   | 58.6 |   |
|                                                                                                                |   |                |    |   |   |   |   |   |
| Dividends      declared per common share                                                                            |   | $                   | -       |   |   | $ | 0.11 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |            |         |   |            |   |               |                 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|--------------|--------|-----------------|--------|--------------------|----------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | May      3,2008 |         |   | May      5,2007 |   |               | February      2,2008 |   |
| Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |            |         |   |            |   |               |                 |   |
| Current      assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |            |         |   |            |   |               |                 |   |
|    Cash      and cash      equivalents                                                                                                                                                                                                                                       |   | $               | 40.4         |   |            | $      | 79.0               |                 |   | $ | 61.0 |   |
|    Merchandise      inventories                                                                                                                                                                                                                                              |   |            | 1,241.2      |   |            |   | 1,429.6            |                 |   |   | 1,327.2 |   |
|    Accounts      receivable and other current      assets                                                                                                                                                                                                                    |   |            | 145.0        |   |            |   | 106.3              |                 |   |   | 117.8 |   |
|    Taxes,      including income      taxes                                                                                                                                                                                                                                   |   |            | 6.5          |   |            |   | -                  |                 |   |   | - |   |
|    Current      assets of discontinued      operations                                                                                                                                                                                                                       |   |            | -            |   |            |   | 141.2              |                 |   |   | - |   |
|          Total      current      assets                                                                                                                                                                                                        |   |            | 1,433.1      |   |            |   | 1,756.1            |                 |   |   | 1,506.0 |   |
| Property      and equipment, net of accumulated depreciation of   $1,070.1,      $975.6 and $1,042.8 at May 3, 2008, May 5, 2007   and      February 2, 2008,      respectively                                                                               |   |            |   636.2 |   |            |   |    610.6 |                 |   |   |   638.8 |   |
| Other      assets                                                                                                                                                                                                                                                                           |   |            | 67.6         |   |            |   | 64.9               |                 |   |   | 64.9 |   |
| Deferred      income      taxes                                                                                                                                                                                                                                                             |   |            | 50.2         |   |            |   | 57.5               |                 |   |   | 52.5 |   |
| Goodwill                                                                                                                                                                                                                                                                                    |   |            | 40.5         |   |            |   | 40.3               |                 |   |   | 40.5 |   |
| Noncurrent      assets of discontinued      operations                                                                                                                                                                                                                                      |   |            | -            |   |            |   | 127.2              |                 |   |   | - |   |
|          Total      assets                                                                                                                                                                                                                     |   | $               | 2,227.6      |   |            | $      | 2,656.6            |                 |   | $ | 2,302.7 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |            |         |   |            |   |               |                 |   |   |   |   |
|            Liabilities, Minority Interest      and Stockholders’ Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |            |         |   |            |   |               |                 |   |   |   |   |
| Current      liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |            |         |   |            |   |               |                 |   |   |   |   |
|    Short-term      borrowings and current portion of long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $               | 585.5        |   |            | $      | 677.0              |                 |   | $ | 548.6 |   |
|    Trade      accounts      payable                                                                                                                                                                                                                                          |   |            | 495.1        |   |            |   | 532.8              |                 |   |   | 550.3 |   |
|    Accrued      payroll and other      liabilities                                                                                                                                                                                                                           |   |            | 286.0        |   |            |   | 296.1              |                 |   |   | 344.6 |   |
|    Taxes,      including income      taxes                                                                                                                                                                                                                                   |   |            | -            |   |            |   | 21.5               |                 |   |   | 18.3 |   |
|    Deferred      income      taxes                                                                                                                                                                                                                                           |   |            | 8.6          |   |            |   | 16.3               |                 |   |   | 6.0 |   |
|    Current      liabilities of discontinued      operations                                                                                                                                                                                                                  |   |            | -            |   |            |   | 127.8              |                 |   |   | - |   |
|          Total      current      liabilities                                                                                                                                                                                                   |   |            | 1,375.2      |   |            |   | 1,671.5            |                 |   |   | 1,467.8 |   |
| Long-term      debt                                                                                                                                                                                                                                                                         |   |            | 6.4          |   |            |   | 5.2                |                 |   |   | 5.4 |   |
| Other      long-term      liabilities                                                                                                                                                                                                                                                       |   |            | 394.8        |   |            |   | 321.6              |                 |   |   | 350.4 |   |
| Noncurrent      liabilities of discontinued operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |            | -            |   |            |   | 55.0               |                 |   |   | - |   |
|          Total      liabilities                                                                                                                                                                                                                |   |            | 1,776.4      |   |            |   | 2,053.3            |                 |   |   | 1,823.6 |   |
| Minority      interest                                                                                                                                                                                                                                                                      |   |            | 2.3          |   |            |   | 1.9                |                 |   |   | 2.2 |   |
|          Total      liabilities and minority      interest                                                                                                                                                                                     |   |            | 1,778.7      |   |            |   | 2,055.2            |                 |   |   | 1,825.8 |   |
| Stockholders'      equity:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |            |         |   |            |   |               |                 |   |   |   |   |
| Common      stock; 300,000,000 shares authorized;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |            |         |   |            |   |               |                 |   |   |   |   |
|    60,489,390,      58,740,987 and 58,794,224 shares issued                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |            |         |   |            |   |               |                 |   |   |   |   |
|    and      outstanding at May 3, 2008, May 5, 2007 and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |            |         |   |            |   |               |                 |   |   |   |   |
|    February      2, 2008,      respectively                                                                                                                                                                                                                                  |   |            | 186.1        |   |            |   | 178.4              |                 |   |   | 184.0 |   |
| Accumulated      other comprehensive      income                                                                                                                                                                                                                                            |   |            | 44.0         |   |            |   | 31.6               |                 |   |   | 42.4 |   |
| Retained      earnings                                                                                                                                                                                                                                                                      |   |            | 218.8        |   |            |   | 391.4              |                 |   |   | 250.5 |   |
|          Total      stockholders'      equity                                                                                                                                                                                                  |   |            | 448.9        |   |            |   | 601.4              |                 |   |   | 476.9 |   |
|          Total      liabilities, minority interest and stockholders' equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $               | 2,227.6      |   |            | $      | 2,656.6            |                 |   | $ | 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                                                                | -                                                                                  |      -                                                                                                               |   -                    |     (31.7) |    (31.7) |
| Currency      translation adjustment                                                                                                                                                                                                                                            | -                                                                                  |      -                                                                                                               |     1.6      |   -                  |     1.6 |
| Comprehensive      loss                                                      | -                                                                                  |       -                                                                                                         |   -                    |   -                  |  (30.1) |
| Issuance      of common      stock                                           |  1,695,166                                                                    |                             2.1 |   -                    |   -                  |   2.1 |
| Balance      at May 3,      2008                                             |                  60,489,390 | $    186.1                                                                                                                | $      44.0                      | $    218.8 |              $      448.9 |
|                                                                                                                                                                                                                                                                            |                                                                               |                                                                                                                                          |                             |                           |

----

|                                                                                                                           |   | 13      weeks Ended |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|
|                                                                                                                           |   | May      3,2008     |   |   | May      5,2007 |   |
| Cash      provided by (used for):                                                                                              |   |                |   |   |   |   |
|    Net      loss                                                                                                |   | $                   | (31.7  | ) |   | $ | (35.9 | ) |
|    Net      loss from discontinued operations                                                                   |   |                | -      |   |   |   | (6.8 | ) |
|    Net      loss from continuing operations                                                                     |   |                | (31.7  | ) |   |   | (29.1 | ) |
| Operations                                                                                                                     |   |                |   |   |   |   |   |   |
|    Adjustments      to reconcile loss from continuing operations to   operating      cash flows: |   |                |   |   |   |   |   |   |
|       Depreciation                                                                               |   |                | 28.9   |   |   |   | 25.6 |   |
|       Loss      on disposal of assets                                                            |   |                | 0.1    |   |   |   | 0.1 |   |
|       Increase      in deferred income taxes                                                     |   |                | (1.4   | ) |   |   | (3.0 | ) |
|       (Increase)      decrease in other long-term assets                                         |   |                | (2.8   | ) |   |   | 0.4 |   |
|       Increase      in other long-term liabilities                                               |   |                | 5.0    |   |   |   | 5.1 |   |
|    Cash      provided by (used for) current assets and current    liabilities:                                  |   |                |   |   |   |   |   |   |
|       (Increase)      decrease in inventories                                                    |   |                | 88.9   |   |   |   | (78.6 | ) |
|       Decrease      in accounts receivable                                                       |   |                | 16.7   |   |   |   | 20.7 |   |
|       Increase      in prepaid expenses                                                          |   |                | (10.9  | ) |   |   | (0.5 | ) |
|       Decrease      in trade accounts payable                                                    |   |                | (56.5  | ) |   |   | (30.5 | ) |
|       Decrease      in taxes payable                                                             |   |                | (18.5  | ) |   |   | (41.0 | ) |
|       Decrease      in expenses payable and accrued liabilities                                  |   |                | (50.6  | ) |   |   | (34.9 | ) |
|          Net      cash used for operating activities of continuingoperations      |   |                | (32.8  | ) |   |   | (165.7 | ) |
| Investing                                                                                                                      |   |                |   |   |   |   |   |   |
|    Capital      expenditures                                                                                    |   |                | (29.6  | ) |   |   | (34.1 | ) |
|       Net      cash used for investing activities of continuingoperations                        |   |                | (29.6  | ) |   |   | (34.1 | ) |
| Financing                                                                                                                      |   |                |   |   |   |   |   |   |
|    Proceeds      from the excess tax benefit of stock option exercises                                          |   |                | -      |   |   |   | 0.2 |   |
|    Net      funding from credit facility                                                                        |   |                | 2.7    |   |   |   | 173.8 |   |
|    Funding      from short-term note financing                                                                  |   |                | 42.5   |   |   |   | - |   |
|    Issuance      of long-term debt                                                                              |   |                | 1.1    |   |   |   | - |   |
|    Issuance      of common stock                                                                                |   |                | 2.1    |   |   |   | 2.7 |   |
|    Payment      of cash dividends                                                                               |   |                | (6.5   | ) |   |   | (6.5 | ) |
|       Net      cash provided by financing activities of continuing    operations                 |   |                | 41.9   |   |   |   | 170.2 |   |
|                                                                                                                           |   |                |   |   |   |   |   |   |
| Effect      of exchange rates on cash and cash equivalents of continuing      operations                                       |   |                | (0.1   | ) |   |   | (0.4 | ) |
| Net      cash provided by operating activities of discontinued      operations                                                 |   |                | -      |   |   |   | 4.1 |   |
| Net      cash used for investing activities of discontinued    operations                                                      |   |                | -      |   |   |   | (2.3 | ) |
| Net      cash used for financing activities of discontinued    operations                                                      |   |                | -      |   |   |   | (1.4 | ) |
| Effect      of exchange rates on cash and cash equivalents of discontinued      operations                                     |   |                | -      |   |   |   |  - |   |
| Net      cash provided by discontinued operations                                                                              |   |                | -      |   |   |   | 0.4 |   |
| Net      decrease in cash and cash equivalents                                                                                 |   |                | (20.6  | ) |   |   | (29.6 | ) |
| Cash      and cash equivalents at beginning of year                                                                            |   |                | 61.0   |   |   |   | 108.6 |   |
| Cash      and cash equivalents at end of period                                                                                |   | $                   | 40.4   |   |   | $ | 79.0 |   |

----

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 13      Weeks Ended |    |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                 |   | May      3,2008     |    |   | May      5,2007 |   |
| Sales                                                                                                                                                                                                                                                                                                                                                                                                                |   |                |    |   |   |   |
|      Domestic      Borders      superstores                                                         |   | $                   | 600.7   |   |   | $ | 615.0 |   |
|      Waldenbooks      Specialty Retail                                                                                                                                                                                                                                                                                                                                                      |   |                | 96.0    |   |   |   | 108.1 |   |
|       International                                                                            |   |                | 88.0    |   |   |   | 69.2 |   |
| Total      sales                                                                                                             |   | $                   | 784.7   |   |   | $ | 792.3 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                |    |   |   |   |   |   |
| Operating      loss                                                                                                                                                                                                                                                                                                                                                                                                  |   |                |    |   |   |   |   |   |
|      Domestic      Borders      superstores                                                         |   | $                   | (30.0   | ) |   | $ | (22.0 | ) |
|      Waldenbooks      Specialty Retail                                                                                                                                                                                                                                                                                                                                                      |   |                | (13.6   | ) |   |   | (14.0 | ) |
|       International                                                                            |   |                | (1.3    | ) |   |   | (1.0 | ) |
|       Corporate                                                                                |   |                | (2.7    | ) |   |   | (3.1 | ) |
| Total      operating      loss                                                                                               |   | $                   | (47.6   | ) |   | $ | (40.1 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                |    |   |   |   |   |   |
| Total      assets                                                                                                                                                                                                                                                                                                                                                                                                    |   |                |    |   |   |   |   |   |
|      Domestic      Borders      superstores                                                         |   | $                   | 1,617.8 |   |   | $ | 1,767.0 |   |
|      Waldenbooks      Specialty Retail                                                                                                                                                                                                                                                                                                                                                      |   |                | 205.1   |   |   |   | 318.9 |   |
|       International                                                                            |   |                | 243.6   |   |   |   | 194.2 |   |
|       Corporate                                                                                |   |                | 161.1   |   |   |   | 108.1 |   |
| Total      assets of continuing operations                                                                                                                                                                                                                                                                                                                                                                           |   | $                   | 2,227.6 |   |   | $ | 2,388.2 |   |
|       Discontinued      operations                                                             |   |                | -       |   |   |   | 268.4 |   |
| Total      assets                                                                                                            |   | $                   | 2,227.6 |   |   | $ | 2,656.6 |   |

|                                                                                                                                                                                                                                                                                  |   | 13      Weeks Ended |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|
|                                                                                                                                                                                                                                                                                  |   | May      3,2008     |   |   | May      5,2007 |   |
|     Domestic      Borders superstores                                                                                                                                                                                                                             |   | $                   | 1.8    |   |   | $ | 2.8 |   |
|     Waldenbooks      Specialty Retail                                                                                                                                                                                                                             |   |                | 0.4    |   |   |   | - |   |
|      International                                        |   |                | -      |   |   |   | - |   |
| Total                                                                              |   | $                   | 2.2    |   |   | $ | 2.8 |   |

----

|                                                                                          |   | 13      Weeks Ended |   |
|-----------------------------------------------------------------------------------------------|--------|---------------------|--------|
|                                                                                          |   | May      5, 2007    |   |
| Total      revenue                                                                            |   | $                   | 87.1   |   |
| Loss      from operations of discontinued operations before income    tax                     |   |                | (7.6   | ) |
| Loss      from operations of discontinued operations (net of income tax benefit of      $2.2) |   |                | (5.4   | ) |
| Loss      on disposal of discontinued operations (net of income tax benefit of      $0.6)     |   |                | (1.4   | ) |
| Loss      from discontinued operations (net of income tax benefit of      $2.8)               |   |                | (6.8   | ) |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | May 5,2007 |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|
| Cash      and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $               | 4.9 |   |   |
| Merchandise      inventories                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |            | 92.7 |   |   |
| Accounts      receivable and other current assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |            | 43.6 |   |   |
|         Current assets of discontinued operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $               | 141.2 |   |   |
| Property      and equipment (net of accumulated depreciation)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $               | 103.9 |   |   |
| Other      assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |            | 23.3 |   |   |
|         Noncurrent assets of discontinued operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $               | 127.2 |   |   |
| Short-term      borrowings and current portion of long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $               | 40.6 |   |   |
| Accounts      payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |            | 30.3 |   |   |
| Accrued      payroll and other liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |            | 43.2 |   |   |
| Other      liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |            |  13.7 |   |   |
|         Current liabilities of discontinued operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $               | 127.8 |   |   |
| Long-term      liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $               | 55.0 |   |   |
|         Noncurrent liabilities of discontinued      operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $               | 55.0 |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |            |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |            |   |   |   |
|  NOTE 6 —      FAIR VALUE MEASUREMENTSIn      February 2008, the Company adopted FASB Statement of Financial Accounting      Standards No. 157, “Fair Value Measurements” (FAS 157), which      provides a consistent definition of fair value that focuses on exit price      and prioritizes, within a measurement of fair value, the use of      market-based inputs over entity-specific inputs. FAS 157 requires expanded      disclosures about fair value measurements and establishes a three-level      hierarchy for fair value measurements based on the observability of inputs      to the valuation of an asset or liability as of the measurement date. The      standard also requires that a company consider its own nonperformance risk      when measuring liabilities carried at fair value, including derivatives.      In February 2008, the FASB approved FASB Staff Position No. 157-2,      “Effective Date of FASB Statement No. 157” (FSP No. 157-2), that      permits companies to partially defer the effective date of FAS 157 for one      year for nonfinancial assets and nonfinancial liabilities that are      recognized or disclosed at fair value in the financial statements on a      nonrecurring basis. FSP No. 157-2 does not permit companies to defer      recognition and disclosure requirements for financial assets and financial      liabilities or for nonfinancial assets and nonfinancial liabilities that      are remeasured at least annually. FAS 157 is effective for financial      assets and financial liabilities and for nonfinancial assets and      nonfinancial liabilities that are remeasured at least annually for fiscal      years beginning after November 15, 2007 and interim periods within      those fiscal years. The provisions of FAS 157 are applied prospectively.      The Company has decided to defer adoption of FAS 157 for one year for      nonfinancial assets and nonfinancial liabilities that are recognized or      disclosed at fair value in the financial statements on a nonrecurring      basis. The effect of the adoption of FAS 157 on February 3, 2008 was not      material and no adjustment to retained earnings was      required. |   |            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |            |   |   |   |

----

----

| a.   | A      cash payment of $90.8 at closing, subject to a final purchase price      adjustment to reflect changes in working  capital. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------|

| b.   | A      deferred payment of $4.8, payable on or about January 1, 2009 if certain      actual operating results for fiscal 2008 exceed a specified level,      approximating 2007 results; and |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c.   | A      deferred payment of up to $9.6 payable on or about March 31, 2009 if      certain actual operating results for fiscal 2008 exceed a specified      level. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 13      Weeks Ended |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | May      3, 2008    |   |   | May      5, 2007 |   |
| Sales                                                                                                                 |   |                | 100.0  | % |   |   | 100.0 | % |
| Other      revenue                                                                                                    |   |                | 1.0    |   |   |   | 0.8 |   |
|   Total      revenue                                                                                        |   |                | 101.0  |   |   |   | 100.8 |   |
| Cost      of merchandise sold (includes occupancy)                                                                                                                                                                                                                                                                                                                                                                                                    |   |                | 78.0   |   |   |   | 77.5 |   |
|   Gross      margin                                                                                         |   |                | 23.0   |   |   |   | 23.3 |   |
| Selling,      general and administrative expenses                                                                                                                                                                                                                                                                                                                                                                                                     |   |                | 28.9   |   |   |   | 28.1 |   |
| Pre-opening      expense                                                                                              |   |                | 0.2    |   |   |   | 0.2 |   |
| Asset      impairments and other writedowns                                                                                                                                                                                                                                                                                                                                                                                                           |   |                | -      |   |   |   | 0.1 |   |
|   Operating      loss                                                                                       |   |                | (6.1   | ) |   |   | (5.1 | ) |
| Interest      expense                                                                                                 |   |                | 0.7    |   |   |   | 1.2 |   |
|   Loss      before income      tax                                                                          |   |                | (6.8   | ) |   |   | (6.3 | ) |
| Income      tax      benefit                                                                                          |   |                | (2.8   | ) |   |   | (2.6 | ) |
|   Loss      from continuing      operations                                                                 |   |                | (4.0   | )% |   |   | (3.7 | )% |

----

----

|                                                                                                                                                                                                                                                                                                                            |   | 13      Weeks Ended |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|
| (dollar      amounts in millions)                                                                                                                                                                                                                                                                                               |   | May      3, 2008    |   |   | May      5, 2007 |   |
| Sales                                                                 |   | $                   | 600.7  |   |   | $ | 615.0 |   |
| Other      revenue                                                    |   | $                   | 5.0    |   |   | $ | 4.9 |   |
| Operating      loss                                                   |   | $                   | (30.0  | ) |   | $ | (22.0 | ) |
| Operating      income (loss) as % of sales                                                                                                                                                                                                                                                                                      |   |                | (5.0   | )% |   |   | (3.6 | )% |
| Store      openings                                                   |   |                | 5      |   |   |   | 4 |   |
| Store      closings                                                   |   |                | -      |   |   |   | 1 |   |
| Store      count                                                      |   |                | 514    |   |   |   | 502 |   |

----

|                                                                                                                                                                                                                                                                                              |   | 13      Weeks Ended |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|
| (dollar      amounts in millions)                                                                                                                                                                                                                                                                 |   | May      3, 2008    |   |   | May      5, 2007 |   |
| Sales                                                            |   | $                   | 96.0   |   |   | $ | 108.1 |   |
| Other      revenue                                               |   | $                   | 0.4    |   |   | $ | 0.5 |   |
| Operating      loss                                              |   | $                   | (13.6  | ) |   | $ | (14.0 | ) |
| Operating      loss as % of sales                                                                                                                                                                                                                                                                 |   |                | (14.2  | )% |   |   | (13.0 | )% |
| Store      openings                                              |   |                | -      |   |   |   | - |   |
| Store      closings                                              |   |                | 14     |   |   |   | 11 |   |
| Store      count                                                 |   |                | 476    |   |   |   | 553 |   |

----

|                                                                                                                                                                                                                                                                                                                                               |   | 13      Weeks Ended |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|
| (dollar      amounts in millions)                                                                                                                                                                                                                                                                                                                  |   | May      3, 2008    |   |   | May      5, 2007 |   |
| Sales                                                                                    |   | $                   | 88.0   |   |   | $ | 69.2 |   |
| Other      revenue                                                                       |   | $                   | 2.4    |   |   | $ | 1.0 |   |
| Operating      loss                                                                      |   | $                   | (1.3   | ) |   | $ | (1.0 | ) |
| Operating      loss as % of      sales                                                   |   |                | (1.5   | )% |   |   | (1.4 | )% |
| Superstore      store      openings                                                      |   |                | 1      |   |   |   | 2 |   |
| Superstore      store      count                                                         |   |                | 33     |   |   |   | 70 |   |

----

|                                                                                                                                                                                                                      |   | 13      Weeks Ended |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|
| (dollar      amounts in millions)                                                                                                                                                                                         |   | May      3, 2008    |   |   | May      5, 2007 |   |
| Operating      loss                                  |   | $                   | (2.7   | ) |   | $ | (3.1 | ) |

----

----

| a.   | A      cash payment of $90.8 million at closing, subject to a final purchase      price adjustment to reflect changes in working  capital. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| b.   | A      deferred payment of $4.8 million, payable on or about January 1, 2009 if      certain actual operating results for fiscal 2008 exceed a specified level,      approximating 2007 results; and |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c.   | A      deferred payment of up to $9.6 million payable on or about March 31, 2009      if certain actual operating results for fiscal 2008 exceed a specified      level. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| 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 Whitcoulls 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.                          |
|                              10.43    | Stock      Option Agreement between Mr. Jones and the Company.                                                                                                                                                                                               |
|                              10.44    | Restricted      Share Agreement between Mr. Jones and the Company.                                                                                                                                                                                           |
|                              10.45    | Form      of Executive Officer Severance Agreement.                                                                                                                                                                                                          |
|                              10.46    | Form      of Restricted Share Agreement for Executive Officers.                                                                                                                                                                                              |
|                              10.47    | Form      of Enhanced Incentive Bonus for Executive Officers.                                                                                                                                                                                                |
|                              10.48    | Form      of Enhanced Incentive Bonus Agreement between Mr. Jones and the      Company.                                                                                                                                                                      |
| 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:    June      6, 2008 | By:/s/ Edward W.      Wilhelm |
|------------------------------------------------|-------------------------------|

----

| 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 Whitcoulls 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.                          |
|                              10.43    | Stock      Option Agreement between Mr. Jones and the Company.                                                                                                                                                                                               |
|                              10.44    | Restricted      Share Agreement between Mr. Jones and the Company.                                                                                                                                                                                           |
|                              10.45    | Form      of Executive Officer Severance Agreement.                                                                                                                                                                                                          |
|                              10.46    | Form      of Restricted Share Agreement for Executive Officers.                                                                                                                                                                                              |
|                              10.47    | Form      of Enhanced Incentive Bonus for Executive    Officers.                                                                                                                                                                                   |
|                              10.48    | Form      of Enhanced Incentive Bonus Agreement between Mr. Jones and the      Company.                                                                                                                                                            |
| 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).                                                                                                                                |