Forth & Towne Announces Atlanta Locations

Forth & Towne to Open in Perimeter Mall, The Avenue Webb Gin and The Avenue East Cobb

SAN FRANCISCO – July 25, 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 Atlanta area this fall. Located in premiere Atlanta shopping destinations, the first stores are set to open at Perimeter Mall and The Avenue Webb Gin in September, followed by a store at The Avenue East Cobb in November.

“Atlanta is a great market for Forth & Towne, as women here have an eye for translating trends in a chic, wearable way – and they have an appreciation for outstanding customer service,” says Gary Muto, President, Forth & Towne. “We selected these centers because they are located in areas where our customers live, work and shop, allowing us to serve women throughout the Atlanta region.”

Perimeter Mall draws shoppers from some of the most affluent areas of Atlanta, including Buckhead and Alpharetta, and features signature retailers as well as entertainment and dining options. The Avenue East Cobb and The Avenue Webb Gin are open-air, pedestrian friendly specialty retail centers, designed to blend with their surrounding neighborhoods. The Avenue Webb Gin is set to open this August, and is located in Gwinnett County, a suburb of Atlanta. Opened in 2003, The Avenue East Cobb plans to unveil an expansion this fall that will house Forth & Towne, among other retailers.

Forth & Towne announced plans earlier this year to open in five new markets this fall: Atlanta, Houston, Los Angeles, San Francisco/San Jose and Seattle. Forth & Towne expects to open twelve store locations in these new markets, bringing the total number of Forth & Towne stores to seventeen.

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 chic, 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.

Contact Information

Forth & Towne Media Relations

Gap Inc.

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