Gap (GPS)

UP FROM $0.32 LAST YEAR

SAN FRANCISCO – August 20, 2009 – Gap Inc. (NYSE: GPS) today reported that net earnings for the second quarter, which ended August 1, 2009, were $228 million, or $0.33 per share on a diluted basis, compared with $229 million, or $0.32 per share on a diluted basis, for the second quarter last year.

“We’re proud to deliver second quarter earnings per share above last year, especially during a challenging environment,” said Glenn Murphy, chairman and chief executive officer of Gap Inc. “Building upon two years of work improving our economic model, we’re now putting further emphasis on changing the trajectory of our top line performance. Our focus is to find the right balance between maintaining our cost discipline and making appropriate, targeted investments to gain back market share.”

UP 17% FROM $0.30 FOR THIRD QUARTER LAST YEAR

SAN FRANCISCO – November 20, 2008 – Gap Inc. (NYSE: GPS) today reported that net earnings for the third quarter, which ended November 1, 2008, increased to $246 million, or $0.35 per share on a diluted basis, compared with $238 million, or $0.30 per share on a diluted basis, for the third quarter last year.

Third quarter net sales were $3.6 billion, compared with $3.9 billion for the third quarter of last year. The company’s third quarter comparable store sales decreased 12 percent, compared with a decrease of 5 percent in the third quarter of last year. The company’s online sales for the third quarter increased 15 percent to $284 million, compared with $247 million for the third quarter of last year.

“We’re pleased with our ability to improve our earnings results during the third quarter,” said Glenn Murphy, chairman and chief executive officer of Gap Inc. “While we expect the challenging economic environment to continue, we’ll focus on offering our customers an engaging store experience and products at the right value proposition to stand out this holiday season.”

The company continued to generate strong cash flow and maintains a healthy balance sheet, as demonstrated by the $1.6 billion in cash and investments on hand at the end of the third quarter. Year-to-date free cash flow, defined as net cash provided by operating activities less purchases of property and equipment, was an inflow of $519 million. Please see the reconciliation of free cash flow, a non-GAAP financial measure, from the GAAP financial measure in the tables at the end of this release.

Gap Inc. also reaffirmed that it expects full year diluted earnings per share on a GAAP basis to be $1.30 to $1.35, compared with fiscal year 2007 diluted earnings per share of $1.05.