Gap Inc.

June 21, 2007

SAN FRANCISCO – June 21, 2007 – babyGap and GapKids are proud to announce the latest addition to the (PRODUCT) RED family – a new, limited edition (PRODUCT) RED collection made especially for babies and children and available exclusively at babyGap and GapKids. As part of Gap’s global partnership with (PRODUCT) RED, half of the profits from Gap’s sales of the babyGap and GapKids (PRODUCT) RED collections will go directly to the Global Fund to finance programs that help women and children affected by HIV/AIDS in Africa. This special delivery of (PRODUCT) RED items for kids and babies arrives in select babyGap and GapKids stores on June 21 and online at babygap.com and GapKids.com on July 5. 

“Gap is proud to be a partner of (PRODUCT) RED and we’re excited to introduce our first ever collection of (PRODUCT) RED clothes for kids and an extended collection of (PRODUCT) RED items for babies,” said Pam Wallack, president of babyGap and GapKids. “Our new babyGap and GapKids (PRODUCT) RED clothes provide a unique opportunity for our customers to help make a real difference in the lives of mothers and children in Africa.”

Earlier this spring, babyGap introduced a collection of (PRODUCT) RED bodysuits for babies featuring playful “(RED)” words including DIAPE(RED) and DELIVE(RED). This week GapKids and babyGap introduce a new, extended assortment of (PRODUCT) RED items for kids and babies that is rooted in classic Gap product categories like bodysuits, T-shirts, hoodies and pants.  From a baby bodysuit featuring the word ADO(RED) to a T-shirt for girls with the word INSPI(RED) and a hoodie for boys inscribed with DISCOVE(RED), the collection features subtle yet distinct details inspired by (RED).

To celebrate the introduction of the GapKids and babyGap (PRODUCT) RED collections, Gap recently launched a powerful new advertising campaign.  Photographed by renowned photographer Annie Leibovitz, the ads feature a cast of incredible celebrities who are INSPI(RED) by and passionate about (RED).  The campaign consists of compelling images of Oscar-nominated actor Terence Howard pictured with his three children Hunter, Aubrey and Heaven; Grammy-award winning musician Natalie Maines alongside her sons Beckette and Slade; and Oscar-nominated actress Abigail Breslin, of Little Miss Sunshine fame, with her friend Curious George. Each image features the celebrity wearing their favorite Gap (PRODUCT) RED item in a way that expresses their individual style. The campaign spreads also feature poignant phrases that emphasize the importance of joining the fight to eradicate AIDS in Africa – they read “Every Generation Has a Voice”, “Every Generation Has a Heart” and “Inspire The Next Generation To Change The World”. Developed by Laird+Partners, Gap’s creative agency, the print campaign is running in the July issue of Vanity Fair, on newsstands now. 

Founded by Bono and Bobby Shriver, (RED) is a groundbreaking initiative that marries the private sector of business with the buying power of the public in an effort to generate a sustainable flow of private sector funds towards the fight to eliminate AIDS in Africa. To do this, (RED) harnesses the power of some of the world’s most iconic brands including Gap, American Express, Converse, Emporio Armani, Apple and Motorola – the first companies to partner with (PRODUCT) RED.

Since its launch in the spring of 2006, (PRODUCT) RED and its partners have raised more than $25 million for the Global Fund. More than $11 million of the (RED) money is already at work in Swaziland and Rwanda providing antiretroviral treatment for HIV positive individuals, funding HIV prevention programs, feeding and educating children orphaned by AIDS, and providing the 12 cent treatment needed to help prevent the transmission of HIV from mother to child. Because of (RED) and the Global Fund, over two hundred thousand HIV positive mothers in Rwanda and Swaziland have been given treatment to help ensure that their children are born healthy and over 25,000 people are now on lifesaving drugs.

Please visit www.gap.com/red and www.gapinc.com/red for more information about Gap (PRODUCT) RED and JOINRED.COM for more information about (RED) and (PRODUCT) RED.

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 Piperlime brand names. Fiscal 2006 sales were $15.9 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 Asia and the Middle East. For more information, please visit gapinc.com.

About (RED) and (PRODUCT) RED
(RED)'s primary objective is to engage the private sector in raising awareness and funds for the Global Fund to help fight AIDS in Africa. Companies whose products take on the (PRODUCT) RED mark contribute a significant percentage of the sales or portion of the profits from that product to the Global Fund to finance AIDS programs in Africa, with an emphasis on the health of women and children. Current partners are: American Express (U.K. only), Apple, Converse, Gap, Giorgio Armani, and Motorola. MySpace.com is the first media sponsor in the United Kingdom and MTV Networks is the first media sponsor in the US. WWW.JOINRED.COM

About the Global Fund
The Global Fund to fight AIDS, Tuberculosis and Malaria is a unique global public-private partnership dedicated to attracting and disbursing additional resources to prevent and treat HIV/AIDS, tuberculosis and malaria. This partnership between governments, civil society, the private sector and affected communities represents a new approach to international health financing. The Fund works in close collaboration with other bilateral and multilateral organizations to supplement existing efforts dealing with the three diseases. The Global Fund finances one fifth of all global efforts to stop AIDS and two thirds of global expenditure against tuberculosis and malaria.

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