Press Release

FORTH & TOWNE PLANS TO OPEN IN FIVE NEW MARKETS THIS FALL

Store openings scheduled for Atlanta, Houston, Los Angeles, San Francisco Bay Area and Seattle markets

SAN FRANCISCO − March 22, 2006 − Gap Inc. (NYSE: GPS) announced today that Forth & Towne, the company’s latest apparel concept for women, plans to open stores in five new markets this fall: Atlanta, Houston, Los Angeles, San Francisco/San Jose and Seattle. 

“Since introducing Forth & Towne, our customers have told us how excited they are to have a place to call their own. They enjoy spending time in our stores, shopping for the latest apparel and accessories – and they appreciate the exceptional service they experience each time they walk in the door,” says Gary Muto, President, Forth & Towne. “Our expansion into these new markets allows us to deliver our unique concept to more women across the country and broaden the impact our stores have already made on this underserved customer.”

The stores will feature clothing to serve a variety of occasions in a range of sizes from 2-20, with a focus on fit and style. Forth & Towne offers four distinct brands within each store – Allegory, Vocabulary, Prize and Gap Edition – tailored to suit a range of lifestyles. The service-oriented shopping experience is paramount for the brand. Every Forth & Towne store features a central fitting salon tailored to deliver an enjoyable experience for the customer. Each fitting room is oversized and features three-way mirrors, extra seating and adjustable lighting. Complimentary spring water is offered as an added value to guests.

Forth & Towne, which debuted last August, is the newest concept in Gap Inc.’s family of brands, which now includes Gap, Banana Republic, Old Navy and Forth & Towne. 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 29, 2005. Readers should also consult the company’s Quarterly Report on Form 10-Q for the quarter ended October 29, 2005.

These forward-looking statements are based on information as of March 22, 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.