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Borders hopes partnership with Sony will restore profitability; Digital book downloads show promise.(News)

Byline: Sheena Harrison

Borders Group Inc. is banking on digital book downloads to help give the retailer a leg up on its competition.

Ann Arbor-based Borders (NYSE: BGP) signed an agreement with Sony in September to sell Sony's digital book reader in its stores. The reader, which sells for $299.99, can hold about 160 digital books.

In a statement late last week, Borders said it has rolled out the product to about 500 superstores nationwide. Borders and Sony also have launched a co-branded Web site where customers who buy the digital readers can download more than 25,000 e-books.

For now, the site only can be accessed with a promotional code that customers ...

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