The full Press Release gives some details. They do not say that the Kindles will be able to read ePub -- in fact I find this unlikely as they specifically say that it "will be available for all generations of Kindle devices." That would include the First generation Kindle which has much less in terms of processing power and a completely different control interface.Amazon today announced Kindle Library Lending, a new feature launching later this year that will allow Kindle customers to borrow Kindle books from over 11,000 libraries in the United States. Kindle Library Lending will be available for all generations of Kindle devices and free Kindle reading apps.
Actually I'm not sure ePub will make it easier - library lending will be more streamlined with Kindle if the books come in .mobi/azn format, because that would eliminate the need for using Adobe Digital Editions the way we do with ePubs. No one (outside of Amazon & Overdrive) knows for sure how library lending will work - it's been speculated that the books could come directly from Amazon's servers much like they do with Kindle-to-Kindle lending - but we don't really know yet. The fact that bookmarks, notes & highlights made on the library edition would be saved if one chose to purchase the book helps support that opinion, though.Franklin Eddy said:Probably not at this time. Libraries are not carrying e-books in Kindle format yet. Amazon said that Libraries should start carrying books in Kindle format later this year.
Of course, if the Kindle software is upgraded to read epub books then it becomes easier.