All but one of 14 new superstores (including two relocations)planned for this year have opened, said Ed Wilhelm, senior VP andCFO. All are in the company's new concept, which reduces the spaceallocated to music, giving that space to children's and bargainbooks.

"We continue to be very pleased with the performance of our newconcept stores," Wilhelm said. "We will be applying what we learnfrom these to the rest of the chain where appropriate."

The company opened four new Borders superstores in the UnitedStates during the period -- all of them new concept stores -- andended the second quarter with a total of 518 domestic superstorelocations. The number of Waldenbooks stores was reduced from 532 atthe close of the second quarter 2007 to 468 at the end of thequarter.

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