EXHIBIT
99.1
 
 
 CAUTIONARY
STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION
 REFORM
ACT OF 1995—“SAFE HARBOR” FOR FORWARD-LOOKING STATEMENTS
 
 This
report and other written reports and oral statements made from time to time by
Borders Group, Inc. (the “Company”) may contain so-called “forward-looking”
statements, all of which are subject to risks and uncertainties. One can
identify these forward-looking statements by the use of words such as “expects,”
“seeing,” “anticipates,” “plans,” “agendas,” “will,” “estimates,” “believes,”
“may,” “indicates,” “forecasts,” “focusing,” “guidance,” “outlook,” “projects,”
“initiatives,” “strives,” “seeks,” “goals,” “objectives “assumes,” “looks,”
“should,” “supports,” “comfortable with,” “confident,” and other words of
similar meaning. One also can identify them by the fact that they do not relate
strictly to historical or current facts. These statements are likely to address
the Company’s growth strategy, future financial performance (including sales and
earnings projections), shareholder value, share repurchases, strategic
alternatives, potential alliances or the anticipated benefits there from,
marketing and expansion plans, its plans related to store openings, closings and
remodels, the addition of the Seattle’s Best Coffee and Paperchase brands to
certain Borders stores, and the impact of growth initiatives. One must carefully
consider any such statement and should understand that many factors could cause
actual results to differ materially from the Company’s forward-looking
statements. These factors include inaccurate assumptions and a broad variety of
risks and uncertainties, including some that are known and some that are not.
Although it is not possible to predict or identify all such factors, they may
include the following:
 
 -  consumer
demand for the Company’s products, particularly during the holiday season, which
is believed to be related to a number of factors, including general economic and
geopolitical conditions and overall consumer spending patterns, weather
conditions and, with respect to the mall business, overall mall
traffic;
 
 -  an
unexpected increase in competition, including Internet competition and
competition resulting from electronic or other alternative methods of delivery
of books, music, videos and other products to consumers, or unanticipated margin
or other disadvantages relative to our competitors;
 
 -  asset
impairments relating to under-performing stores or other unusual
items;
 
 -  changes
in accounting rules;
 
 -  the
continued availability of adequate capital to fund the Company’s
operations;
 
 -  uninsured
losses from risks such as terrorism, earthquakes or floods for which no, or
limited, insurance coverage is maintained;
 
 -  higher
than anticipated interest, occupancy, labor, distribution and inventory
shrinkage costs;
 
 -  energy
disruptions, shortages or higher than anticipated energy costs;
 
 -  adverse
litigation expenses or results;
 
 -  unanticipated
work stoppages or increased labor costs;
 
 -  higher
than anticipated costs associated with the closing of under performing
stores;
 
 -  unanticipated
increases in the cost of the merchandise sold by the Company or in occupancy
costs;
 
 -  the
performance of the Company’s initiatives, including international expansion, the
Seattle’s Best and Paperchase initiatives and the store remodel
program;
 
 -  the
stability and capacity of the Company’s information systems;
 
 -  unanticipated
costs or problems relating to the informational technology systems required for
the operations of the Company
 
 -  changes
in foreign currency exchange rates; and
 
 -  the
continued ability of the Company to locate and develop suitable sites for its
superstore expansion and kiosk programs.
 
 The
Company does not undertake any obligation to update forward-looking
statements.