Gap (GPS)

Stock Repurchase Program

During fiscal year 2006, we announced share repurchase authorizations totaling $1.25 billion of which all have been used. During the first quarter of 2007 there were no share repurchases. During the second quarter of 2007, we repurchased 11 million shares for approximately $200 million. In addition, in August 2007, we announced that our board of directors had authorized an additional $1.5 billion for our ongoing share repurchase program, underscoring our commitment to return excess cash to shareholders. With this announcement, our share repurchase authorizations total $5.75 billion since October 2004. In connection with this authorization, we also entered into purchase agreements with individual members of the Fisher family whose ownership represented approximately 17 percent of the Company’s outstanding shares at the end of the second quarter of fiscal year 2007. Multiple Fisher family members and entities owned approximately 34 percent of our outstanding shares at the end of the second quarter of fiscal year 2007. We expect that approximately $250 million (approximately 17 percent) of the $1.5 billion share repurchase program will be purchased from Fisher family members under the agreements. The shares will be purchased each month at the same weighted average market price that we are paying for share repurchases in the open market. The purchase agreements may be terminated upon 15 business days notice by the Company or individual Fisher family members.

Stock Repurchase Program

During fiscal 2006, we announced share repurchase authorizations totaling $1.25 billion, of which $200 million remains available as of May 5, 2007. For the thirteen weeks ended May 5, 2007 there were no share repurchases. For the thirteen weeks ended April 29, 2006, we repurchased 22 million shares for approximately $389 million, of which $382 million was paid by the end of the quarter.

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Stock Repurchase Program

During fiscal 2006, we announced share repurchase authorizations totaling $1.25 billion through August 1, 2007. We repurchased approximately 58 million shares of our common stock for a total cost of approximately $1 billion, resulting in an average price per share of $17.97 including commissions.

During fiscal 2005, we repurchased approximately 99 million shares of our common stock at a total cost of approximately $2.0 billion, at an average price per share of $20.29 including commissions.

Stock Repurchase Program

On February 23, 2006, we announced the authorization of an additional $500 million for our share repurchase program all of which has been used. On August 3, 2006, we announced the authorization of an additional $750 million for our ongoing share repurchase program. Under this authorization, shares may be repurchased over 12 months. During the third quarter of 2006, we repurchased

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approximately 16 million shares of our common stock at a total cost of approximately $271 million, at an average price per share of $16.86 including commissions. During the first thirty-nine weeks of 2006, we repurchased approximately 44 million shares of our common stock at a total cost of approximately $771 million, at an average price per share of $17.53 including commissions.

Stock Repurchase Program

On February 23, 2006, we announced the authorization of an additional $500 million for our share repurchase program all of which has been used. During the second fiscal quarter of 2006, we repurchased approximately 6 million shares of our common stock at a total cost of approximately $111 million, at an average price per share of $17.95 including commissions. During the first twenty-six weeks of 2006, we repurchased approximately 28 million shares of our common stock at a total cost of approximately $500 million, at an average price per share of $17.92 including commissions. On August 3, 2006, we announced the authorization of an additional $750 million for our ongoing share repurchase program. Under this authorization, shares may be repurchased over 12 months.

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Stock Repurchase Program

On February 23, 2006, we announced the authorization of an additional $500 million share repurchase program.

During the first fiscal quarter of 2006, we repurchased approximately 22 million shares of our common stock at a total cost of approximately $389 million, at an average price per share of $17.91 including commissions. During the comparable period of fiscal 2005, we repurchased approximately 26 million shares of our common stock at a total cost of approximately $556 million, at an average price per share of $21.53 including commissions.

Differences between cash used in financing activities related to repurchase of common stock and the comparable change in shareholders’ equity are due to the timing difference between the recognition of common stock repurchases and the cash settlement of the common stock repurchases.

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Stock Repurchase Program

Since the beginning of fiscal 2004, the Company has completed $3 billion of share repurchases of about 146 million shares. During fiscal 2005, we announced share repurchase authorizations totaling $2.0 billion, which we completed by the end of the fiscal year. We repurchased approximately 99 million shares of our common stock at a total cost of approximately $2.0 billion, at an average price per share of $20.29 including commissions. In February 2006, we announced the authorization of a new $500 million share repurchase program. Under this program, shares may be repurchased over 24 months.

During fiscal 2004, we repurchased approximately 48 million shares for approximately $1.0 billion, including commissions, at an average price per share of $20.92.

Stock Repurchase Program

During fiscal 2005, we announced share repurchase authorizations totaling $2.0 billion, which we completed by the end of the fiscal year. We repurchased approximately 99 million shares of our common stock at a total cost of approximately $2.0 billion, at an average price per share of $20.29 including commissions. On February 23, 2006, we announced the authorization of a new $500 million share repurchase program. Under this program, shares may be repurchased over 24 months.

During fiscal 2004, we repurchased approximately 48 million shares for approximately $1.0 billion, including commissions, at an average price per share of $20.92.

Stock Repurchase Program

On February 24, 2005, we announced the authorization of a $1.5 billion share repurchase program, which is now complete. On July 20, 2005, we announced the authorization of a new $500 million share repurchase program. Under this program, shares may be repurchased over 12 months. During the third quarter of 2005, we repurchased approximately 9.9 million shares of our common stock at a total cost of approximately $188 million, at an average price per share of $18.96 including commissions. During the first thirty-nine weeks of 2005, we repurchased approximately 81 million shares of our common stock at a total cost of approximately $1.7 billion, at an average price per share of $20.87 including commissions. We expect to use excess cash to opportunistically repurchase shares at prices we deem attractive.

In September and October 2004, our Board of Directors authorized the repurchase of $750 million of our common stock. During the third quarter of 2004, we repurchased approximately 17 million shares of our common stock at a total cost of approximately $338 million, at an average price per share of $19.72 including commissions.

At October 30, 2004, differences in cash used in financing activities related to purchase of treasury stock differs from the comparable change in shareholders’ equity by $65 million due to the timing between the recognition of treasury stock purchases and the cash settlement of the treasury stock purchases as well as the reissuance of treasury stock.

Stock Repurchase Program

On February 24, 2005, we announced the authorization of a new $1.5 billion share repurchase program. As of July 30, 2005, we completed our $1.5 billion share repurchase program with the purchase of approximately 71 million shares for approximately $1.5 billion, including commissions, at an average price per share of $21.14.

On July 20, 2005, we announced the authorization of a new $500 million to the share repurchase program. The authorization for this repurchase program is for 12 months. We will continue to use excess cash to opportunistically repurchase shares at prices we deem attractive.

Stock Repurchase Program

On February 24, 2005, we announced the authorization of a new $1.5 billion share repurchase program. Though the authorization for this repurchase program is for 24 months, we expect the majority of repurchases to occur in 2005. During the first thirteen weeks of 2005, we have repurchased approximately 26 million shares of our common stock at a total cost of approximately $556 million, at an average price per share of $21.53 including commissions. We will continue to use excess cash to opportunistically repurchase shares at prices we deem attractive.

Stock Repurchase Program

On October 7, 2004, we announced a $500 million share repurchase program. On November 4, 2004, we announced an addition of $250 million to the program for an aggregate $750 million. On December 2, 2004, we announced an addition of $250 million to the program for an aggregate $1 billion. As of January 29, 2005, we completed our $1 billion share repurchase program with the purchase of approximately 48 million shares for approximately $1 billion, including commissions, at an average price per share of $20.92.

On February 24, 2005, we announced the authorization of a new $1.5 billion repurchase program. Though the authorization for this repurchase program is for 24 months, we expect the majority of repurchases to occur in 2005.