Forth & Towne Announces Los Angeles Area Locations

Forth & Towne Opening in Century City, Thousand Oaks and Topanga

SAN FRANCISCO – June 21, 2006 – Gap Inc. (NYSE: GPS) announced today that Forth & Towne, the company’s new apparel concept for women, plans to open three stores in the Los Angeles area this fall. Located in upscale Los Angeles area shopping destinations, the stores are expected to open in Westfield Century City Shopping Center and The Oaks Shopping Center in Thousand Oaks in September, followed by Westfield Topanga Shopping Center in October.

“The Los Angeles area is a perfect market for Forth & Towne, as women here have a high affinity for style, fashion and trends. We chose these established, well-known centers because they are conveniently located in areas where our customers live, work and shop,” says Gary Muto, President, Forth & Towne.

The Oaks is located in Thousand Oaks, just north of Los Angeles, and serves a number of affluent communities including Calabasas, Malibu, Westlake Village and Agoura Hills. Located in the San Fernando Valley, Westfield Topanga caters to shoppers seeking luxury and convenience. The center is in the midst of a large-scale redevelopment project, set to be completed in fall 2006. Westfield Century City is located in a thriving business and shopping district, and recently completed a redevelopment project bringing new retail, dining and entertainment options to the center.

Forth & Towne announced plans earlier this year to open approximately 10 stores in five new markets this fall: Atlanta, Houston, Los Angeles, San Francisco/San Jose and Seattle.

Forth & Towne was created to serve a new generation of women seeking chic, wearable fashions that fit and flatter. Four distinct collections – Allegory, Vocabulary, Prize and Gap Edition – are designed for a range of lifestyles and occasions, and are available in sizes 2-20. An inspiring, service-oriented shopping experience awaits customers at Forth & Towne. Taking a fresh approach to store design, each store features a centrally-located fitting salon to deliver a warm, inviting experience for the customer. Each fitting room is oversized and features three-way mirrors, extra seating and adjustable lighting. In addition, Forth & Towne Style Consultants are available to help customers create easy, complete looks for all occasions.

About Forth & Towne
Forth & Towne, which debuted last August, is Gap Inc.’s new apparel concept for women. A destination for grown-up style, Forth & Towne offers women fashionable apparel and accessories for every occasion and a unique shopping experience. There are currently five Forth & Towne locations: Palisades Center Mall, West Nyack, NY; Algonquin Commons, Algonquin, IL; Westfield Fox Valley, Aurora, IL; Westfield Old Orchard, Skokie, IL; and Woodfield Mall, Schaumburg, IL.

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.

Forward-Looking Statements
This press release contains forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than those that are purely historical are forward-looking statements. Words such as “expect,” “anticipate,” “believe,” “estimate,” “intend,” “plan,” and similar expressions also identify forward-looking statements. Forward-looking statements include statements regarding the company’s plans to open new Forth & Towne locations this fall.

Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause the company’s actual results to differ materially from those in the forward-looking statements. These factors include, without limitation, the following: the risk that the company will be unsuccessful in gauging fashion trends and changing consumer preferences; the highly competitive nature of the company’s business in the U.S. and internationally and its dependence on consumer spending patterns, which are influenced by numerous other factors; the risk that comparable store sales and margins will experience fluctuations; the risk that the company will be unsuccessful in implementing its strategic and operating initiatives; and the risk that trade matters, events causing disruptions in product shipments from China and other foreign countries, or IT systems changes may disrupt the company’s supply chain or operations. Additional information regarding factors that could cause results to differ can be found in the company’s Annual Report on Form 10-K for the fiscal year ended January 28, 2006. Readers should also consult the company’s Quarterly Report on Form 10-Q for the quarter ended April 29, 2006.

These forward-looking statements are based on information as of June 21, 2006, and the company assumes no obligation to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.

Contact Information

Forth & Towne Media Relations

Gap Inc.

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