Borders will also launch an e-book store and software in June. The Kebo e-reader is cheaper than other similar devices like Amazon's (AMZN) Kindle and Barnes & Noble's (BKS) Nook, retailing at $149.99. The other two e-readers both sell for $259.
Borders will begin selling the device in stores in August. Pre-ordered Kebos are expected to arrive on June 17.
Shares of Borders are gaining 7.3% to $2.22 in afternoon trading.-- Reported by Jeanine Poggi in New York. Follow TheStreet.com on Twitter and become a fan on Facebook.
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