The transaction includes all 41 Borders superstores in the UKand the Borders superstore in Ireland, as well as all 28 Books etc.stores in the UK Risk Capital Partners also retains the right touse the Borders and Books etc. brand names consistent with a brandlicensing agreement as part of the acquisition. The Borders U.K.and Ireland management team will continue to be led by David Roche,who will serve as chief executive officer of the new company.

The sale represents one of the steps that Borders is taking inits strategic plan to drive a turnaround of the Borders Group,according to CEO George Jones. The Borders CEO comments that thesale will allow the US firm to "focus investment and resources onour core business, which is the US superstore segment." At the sametime, Jones points out, the structure of the deal provides forBorders to share in the future potential upside of the UK businessunder the ownership of Risk Capital Partners.

The sale does not include Borders Asia Pacific, which operates20 Borders superstores in Australia and four superstores in NewZealand that are in the midst of a previously announced strategicalternatives review by Borders Group, a process that continues.Also not included in the sale are the company's Paperchaseoperation, its franchise operations in Dubai and Malaysia and itssuperstore in Singapore.