Gap Inc. Releases Latest Factory Inspection And Performance Data

Company’s Most Recent Social Responsibility Report Recognized as Top 50 Leader in Sustainability Reporting

SAN FRANCISCO – November 21, 2006 – Gap Inc. announced today the release of its latest factory inspection and performance data online as part of its ongoing social responsibility commitment. This new data builds on the strengths of the company’s most recent social responsibility report, named one of the top 50 leaders in reporting by SustainAbility.

The updated information, as well as previous social responsibility reports, can be found at www.gapinc.com/socialresponsibility.

“We take our responsibility to make a positive impact in the communities where we do business seriously, and we’re extremely pleased to be recognized for our efforts,” said Dan Henkle, senior vice president of Social Responsibility for Gap Inc. “Our website is an integral part of our global approach to sharing information on our program and the challenges we face monitoring conditions around the world.”

The new gapinc.com content includes the most recent results of the company’s inspections in the factories that make its clothes, including data on factory approvals and terminations.

For example, in 2005, Gap Inc.’s team of Vendor Compliance Officers (VCOs) – which remains one of the largest in the garment industry – conducted 4,438 factory inspections in 2,118 garment factories around the world, accounting for 98.7 percent of all garment factories approved for Gap Inc. production. During that same period, Gap Inc. terminated business with 62 factories, or about 2.9 percent of the company’s approved base, for violations of its Code of Vendor Conduct.

In this latest release, Gap Inc. also provides information on new initiatives and elements of its program that previously appeared only in the first two social responsibility reports, including:
• How business decisions and practices can affect working conditions;
• Stakeholders, key partnerships, and external evaluations;
• The evolution of the company’s Global Compliance team; and
• Efforts to minimize its impact on the environment.

“We are making progress,” said Henkle. “However, it’s clear that we can’t make a significant impact alone. There is a great deal more work to be done, and we’ll need to continue collaboration with our stakeholders, including other brands, non-governmental organizations (NGOs), trade unions and other interested groups if we want to impact working conditions and industry practices in a sustainable way.”

Moving forward, Gap Inc. will issue social responsibility reports biennially, with the next report scheduled for release in 2007.

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, Forth & Towne and Piperlime brand names. Fiscal 2005 sales were $16.0 billion. Gap Inc. operates more than 3,100 stores in the United States, the United Kingdom, Canada, France, Ireland and Japan. In addition, Gap Inc. is expanding its international presence with franchise agreements for Gap and Banana Republic in Southeast Asia and the Middle East. For more information, please visit gapinc.com.

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