Cheers for all replys guys. interesting debate. Yes it looks to me like broken glass but I'm mystified as to how this could happen.
If I was toting it around regularly it might explain it, but here's the thing...it has not left my drawer on my nightstand for months! Nothing is or was placed on top of it in the drawer. Simple as that really. Thats why I'm mystified as to why it could happen. No one goes near the drawer. I finished reading it a couple of nights ago put it in the drawer, left it there, got into bed the next night, took it out, popped out the SD card and loaded some more books and then popped it back in and switched it on. Only then did I see the broken screen.
Bookeen to their credit have replied promptly, an email was dispatched last night with a reply earlier today and unfortunately it was as Harry T suggested. 120 euro to replace the screen + postage.
My biggest concern now is them shipping it back.
I hope its wrapped in giant bubble wrap in a big box or something...