Press Release

GAP INC. ANNOUNCES NEW INTERNATIONAL AGREEMENTS

With Southeast Asia Retailer F J Benjamin for Gap and Banana Republic in Singapore and Malaysia

SAN FRANCISCO − January 18, 2006 − Gap Inc. (NYSE: GPS) today announced agreements to expand its Gap and Banana Republic brands to two key Southeast Asian markets. One of Gap Inc.’s subsidiaries has signed agreements with wholly-owned subsidiaries of F J Benjamin Holdings Ltd. Under the agreements, F J Benjamin will hold exclusive rights to operate Gap and Banana Republic branded apparel and accessories stores in Singapore and will hold exclusive rights to distribute Gap and Banana Republic products in Malaysia.

Gap Inc.’s subsidiary’s franchise agreement with F J Benjamin for Singapore and distribution agreement for Malaysia, which the company expects to convert to a franchise agreement after regulatory approval, demonstrate the company’s first step toward expanding the Gap and Banana Republic brands via international franchises. They are part of the company’s previously announced strategy for international growth.  

“We are bringing Gap and Banana Republic to more customers throughout the world,” said Andrew Rolfe, President of Gap Inc. International. “Singapore is a shopping destination for Southeast Asia and Malaysia is one of the fastest-growing markets with shopping malls. F J Benjamin has significant expertise in this market and we’re delighted to enter this collaboration with them to bring Gap’s fresh, casual, American style and Banana Republic’s affordable luxury to fashion-savvy customers.”

F J Benjamin plans to open about 30 stores in Singapore and Malaysia by 2010, opening the first Gap store in the fall of 2006 and the first Banana Republic store in 2007.

Mr. Frank Benjamin, Chairman and CEO of F J Benjamin, commented, “We are excited to be working with Gap Inc. Gap and Banana Republic are global fashion icons and we intend to aggressively launch and grow these brands in Singapore and Malaysia.”

Gap Inc. will leverage F J Benjamin’s retail expertise and will provide access to Gap and Banana Republic’s world-renowned clothing and accessories. F J Benjamin will purchase merchandise from Gap Inc. or suppliers designated by Gap Inc. and must adhere to Gap Inc.’s quality standards to preserve the reputation of the Gap and Banana Republic brands. 

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, without limitation, statements regarding the company’s expectation that its distribution agreement for Malaysia will be converted into a franchise agreement after regulatory approval, the company’s intention to expand the Gap and Banana Republic brands via international franchising, FJ Benjamin's intention to aggressively grow the Gap and Banana Republic brands in Singapore and Malaysia and the timing and number of stores that are expected to open.

Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those in the forward-looking statements. These factors include, without limitation, the following: the risk that FJ Benjamin will be unable to successfully open, operate and grow the number of Gap and Banana Republic branded apparel and accessories stores in Singapore and Malaysia, which the company may have a limited ability to control; the risk that the company will be unable to convert the Malaysian distribution agreement to a franchise agreement, which could limit the company’s ability to control FJ Benjamin’s operation of the business in Malaysia; the risk that the company will be unsuccessful in gauging fashion trends and changing consumer preferences; the highly competitive nature of the apparel and accessories markets internationally and the dependence of these markets on consumer spending patterns, which are influenced by numerous other factors; 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; any of which could impact net sales, costs and expenses, and/or planned strategies. 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 fiscal quarter ended October 29, 2005.  

Future economic and industry trends that could potentially impact net sales and profitability are difficult to predict. These forward-looking statements are based on information as of January 18, 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.

About F J Benjamin Holdings Ltd
Singapore-listed F J Benjamin Holdings Ltd has, for nearly five decades, been an industry leader in building retail and distribution networks for international fashion and lifestyle brands in Asia. The F J Benjamin Group has a strong and vibrant presence in Asia Pacific and North Asia with more than 100 retail outlets and a vast distribution channel. It’s portfolio encompasses internationally renowned brands such as Valentino, Guess?, La Senza and Raoul, and luxury timepieces like Girard-Perregaux and Jean Richard. The Group continues to expand its collaborations with key operators in the lifestyle entertainment industry.  (FJBenjamin.com)

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 2004 sales were $16.3 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.