Banana Republic Announces Five New Japan Locations

Gap Inc.’s affordable luxury brand to open its first freestanding store in Fukuoka

SAN FRANCISCO – July 17, 2006 – Gap Inc. (NYSE: GPS), today announced it plans to open five additional Banana Republic store locations in Japan in the fall of 2006. With these new store locations, Banana Republic will have a total of thirteen store locations in Japan.

Banana Republic plans to open its first freestanding store in Japan on August 25 in Fukuoka, the liveliest shopping destination in Kyushu. Four shops-in-shop are planned for major cities in Japan – Nagoya, Tachikawa, Hiroshima and Kawasaki. Banana Republic is expected to open on August 30 in Lachic, a prominent shopping complex in Nagoya that houses major overseas brands and specialty stores, followed by Granduo in Tachikawa, a growing shopping area in a suburb of Tokyo on September 6. Banana Republic plans to open on September 15 at Hiroshima Tenmaya, one of the most historical and popular department stores in the Chugoku area, and on September 28 at Lazona, a new large-scale shopping center to open in this fall in Kawasaki, one of the most important shopping destinations in the Kanagawa Prefecture.

“We are pleased with the initial success of our existing Banana Republic stores in Japan, and are excited to bring the brand to more customers in new markets with these additional stores,” said Kentaro Odagiri, Vice President & Managing Director of Banana Republic Japan. “We are especially delighted to open a freestanding Banana Republic store in Fukuoka, one of the most important cities in the Kyushu area.”

Banana Republic also plans to offer a series of women’s limited edition handbags to celebrate these new openings.

Banana Republic opened its first stores in Japan in the fall of 2005, its first store locations outside North America. Banana Republic currently operates eight stores in Japan: in Tokyo at Printemps Ginza, Roppongi Hills, Nihonbashi Coredo, Tamagawa Takashimaya SC, and Shinjuku Mitsukoshi Alcott; in Yokohama at Yokohama Landmark; in Nagoya at Hoshigaoka Terrace; in Kobe at The 45th in Kyu-kyoryuchi district.

Banana Republic, which currently has about 500 stores and annual sales of more than $2 billion in fiscal year 2005 in North America and Japan, is known for offering modern interpretations of classic fashion for women and men through elevated design and luxurious fabrications at affordable prices.

About Gap Inc.
Gap Inc. is a leading international specialty retailer offering clothing, accessories and personal care products for men, women, children and babies under the Gap, Banana Republic, Old Navy and Forth & Towne brand names. Fiscal 2005 sales were $16.0 billion. Gap Inc. operates about 3,000 stores in the United States, the United Kingdom, Canada, France and Japan. For more information, please visit gapinc.com.

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Banana Republic Media Relations

Gap Inc.

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