4.28.2004 ET

(CSRwire) SAN FRANCISCO - Gap Inc. (NYSE: GPS) today announced that it has been accepted into membership in the U.K.-based Ethical Trading Initiative (ETI). Gap Inc. is the third U.S. corporation and the thirty-seventh company overall to join the alliance, which also currently includes 16 non-governmental organizations and relevant U.K. and global trade unions.

"Joining ETI is an important step in our ongoing efforts to evolve our program and find sustainable approaches that will improve garment factory working conditions around the world," said Anne Gust, Executive Vice President and Chief Administrative and Compliance Officer for Gap Inc., who is responsible for overseeing the company's ethical sourcing practices. "We realize we can't do this work alone. We look forward to learning from ETI members and working collaboratively to address global labor issues that affect workers in garment manufacturing and other sectors."

ETI works to identify and promote good practice in the implementation of corporate codes governing supply chain labor conditions, primarily in the food and clothing sectors. The group's ultimate goal is to ensure that conditions for workers producing goods for the U.K. market meet or exceed international labor standards. Gap Inc. has operated retail stores in the United Kingdom since 1987. ETI only accepts a company for membership following a rigorous review process to assess the company's commitment to implementing the ETI Base Code with its suppliers. All membership applications are approved by the organization's board of directors. More information about ETI is available at ethicaltrade.org.

"Today Gap Inc. has made an important and public commitment to ensure that their suppliers respect the rights of workers they employ by observing the ETI Base Code," said Dan Rees, director of the ETI. "We welcome Gap Inc.'s membership and look forward to supporting their efforts to improve working conditions for garment workers around the world."

Approximately 3,000 garment factories in about 50 countries produce merchandise for Gap Inc.'s Old Navy, Banana Republic and Gap brands. To do business with the company, garment manufacturers are required to comply with the company's Code of Vendor Conduct, which defines labor and health and safety standards. The company has about 90 full-time employees worldwide who continually monitor factories for compliance issues and work with manufacturers, non-governmental organizations, unions and other stakeholders to improve conditions.

Although Gap Inc. has had its own code since 1996, the ETI Base Code will be an additional guide to influence the company's enforcement of labor standards, the company said. Public reporting also is an important expectation of ETI members. On May 12, 2004, Gap Inc. is publishing its first social responsibility report. In addition to information currently available on the company's Web site, gapinc.com, the report will provide greater detail about the company's ethical sourcing practices and goals, as well as data about compliance issues found and addressed in factories in 2003. The report will be available online at gapinc.com

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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 and Old Navy brand names. Fiscal 2003 sales were $15.9 billion. As of April 3, 2004, Gap Inc. operated 3,022 store locations in the United States, the United Kingdom, Canada, France, Japan and Germany. In the United States, customers also may shop the company's online stores at gap.com, BananaRepublic.com and oldnavy.com.

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