Gap Inc. Joins ’No on Proposition 23’

Company Affirms Commitment to Comprehensive Clean Energy and Climate Policy

SAN FRANCISCO – Gap Inc. (NYSE: GPS) announced today its opposition to Proposition 23, the California ballot measure that would suspend the state’s landmark clean energy law entitled the Global Warming Solutions Act of 2006 (A.B. 32) that is fostering clean energy innovation, creating jobs and protecting the health of the public. Gap Inc. joins a broad coalition of business leaders, public health advocates, clean technology companies and others opposed to Proposition 23.

“As a consumer-focused company invested in improving the social, environmental and economic health of communities around the globe, we not only want to see immediate implementation of A.B. 32 in California but also national energy and climate legislation,” said Kindley Walsh Lawlor, Vice President of Social and Environmental Responsibility for Gap Inc. “Putting aside this law would be a major setback to protecting and improving the environment and public health.”

Gap Inc. has already taken a number of steps to reduce its environmental impact and footprint. For instance:
• As part of the United States Environmental Protection Agency’s Climate Leaders Program, Gap Inc. reduced its greenhouse gas emissions by 20 percent from 2003 to 2008, exceeding its goal of 11 percent for that period.
• In its innovative clean water program, the company requires special treatment of water used to launder Gap, Banana Republic, and Old Navy denim to ensure that it’s clean and safe when it leaves the denim laundry.
• To conserve energy, the company replaced more than 16,000 lighting fixtures at its distribution centers — while maintaining, and even improving, lighting levels -- saving 26 million kilowatt-hours and more than $2 million annually.
• In support of cleaner fuel alternatives, the company installed a one-megawatt solar power system at its West Coast distribution center campus in California.
• The company offers creative ways for consumers to recycle, such as Gap brand’s “Recycle Your Blues” event which turns worn, damaged denim into housing insulation for communities in need. During the two week campaign in March 2010, the company collected 270,000 pairs of jeans at more than 1,000 participating Gap stores, enough to insulate more than 500 homes. Based on this success, the “Recycle Your Blues” campaign was repeated in October 2010.

Gap Inc. participates in initiatives to support climate and energy policies at the federal and international level. The company is a member of Business for Innovative Climate and Energy Policy (BICEP), American Businesses for Clean Energy (ABCE), the Business Council on Climate Change (BC3), the Alliance for Climate Protection’s RePower America campaign, the Prince’s Rainforest Project, and was a signatory to the Copenhagen Communiquè. For more information on Gap Inc.’s environmental efforts please visit our social responsibility website at www.gapinc.com/socialresponsibility.

About Gap Inc.

Gap Inc. is a leading global specialty retailer offering clothing, accessories, and personal care products for men, women, children, and babies under the Gap, Banana Republic, Old Navy, Piperlime, and Athleta brands. Fiscal 2009 sales were $14.2 billion. Gap Inc. operates about 3,100 stores in the United States, Canada, the United Kingdom, France, Ireland, and Japan. In addition, Gap Inc. is expanding its international presence with franchise agreements in Asia, Australia, Europe, Latin America, and the Middle East. For more information, please visit www.gapinc.com.