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									Gap Inc. Expands International Presence with Franchise
Agreement in the Philippines
Tuesday October 09, 2007 - 12:00 PM EDT

Source: Business Wire News Releases
Author: Gap Inc.


Click here to read the original story


Gap Inc. (NYSE: GPS) today announced a franchise agreement to introduce the Gap and Banana Republic
brands to the Philippines. Over the next five years, Gap Inc.'s franchise partner â Rustan Group of
Companies â plans to open a combined total of approximately eight Gap stores and four Banana Republic
stores throughout the Philippines.

The first Gap store is expected to open by the end of this year, and the first Banana Republic stores by spring
2008. All stores are scheduled to be open by 2012.

"The Philippines represents a natural market for Gap Inc. to expand its international presence," said Ron
Young, senior vice president of international strategic alliances for Gap Inc. "The country has a strong,
steadily growing economy, and consumers in this market have a great interest in iconic apparel brands such as
ours."

Gap Inc. will leverage the Rustan Group's local operational expertise, and will provide access to Gap and
Banana Republic's clothing and accessories. In addition, the Rustan Group of Companies will hold exclusive
rights to operate Gap and Banana Republic stores in the Philippines, 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.

"We're pleased to have forged a relationship with such an excellent local partner," continued Mr. Young. "In
addition to strong operational expertise and a deep understanding of their local customer base, the Rustan
Group of Companies has a track record of successfully introducing well-known fashion and apparel brands to
international markets."

Gap Inc. directly operates Gap brand stores in six countries and Banana Republic stores in three countries.
Today's announcement follows previously-announced franchise agreements to open Gap and Banana Republic
stores in Bahrain, Indonesia, Kuwait, Malaysia, Oman, Qatar, Saudi Arabia, Singapore, South Korea, Turkey
and the United Arab Emirates.

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 timing and number of stores that are expected to open pursuant to the
announced franchise agreement.

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 our franchisee will be unable to


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successfully open, operate and grow the number of Gap and/or Banana Republic branded apparel and
accessories stores planned for the Philippines; 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 the company will be unsuccessful in implementing its strategic, operating
and people initiatives; 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; and
the risk that the company will not be successful in defending various proceedings, lawsuits, disputes, claims,
and audits; 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 February 3, 2007. Readers should also consult the company's
Quarterly Report on Form 10-Q for the fiscal quarter ended August 4, 2007.

These forward-looking statements are based on information as of October 9, 2007, 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 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.

Contacts:

Gap Inc.
Investor Relations:
Evan Price, 415-427-2161
or
Media Relations:
Greg Rossiter, 415-427-2360
Robin Carr, 415-427-2864

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