San Francisco, Calif., February 2, 2006 – The Gymboree Corporation (NASDAQ: GYMB) reported net sales from retail operations for the four-week period ended January 28, 2006 of $51.2 million, an increase of 5% compared to net sales from continuing retail operations of $48.6 million for the same four-week period last year. Comparable store sales for the four-week period increased 2% compared to a 10% increase for the same period last year.

Net sales from retail operations for the fourth fiscal quarter ended January 28, 2006 were $202.9 million, an increase of 17% compared to net sales from continuing retail operations of $173.0 million for the same period last year. Comparable store sales for the fourth fiscal quarter increased 14% compared to the same period last year.

"January marks the end of a remarkable quarter," said Matthew McCauley, Gymboree's CEO. "We generated record sales while being less promotional throughout the quarter."

Net sales from retail operations for the full fiscal year ended January 28, 2006 were $667.5 million, an increase of 14% compared to net sales from continuing retail operations of $583.7 million for the same period last year. Comparable store sales for the full fiscal year 2005 increased 9% compared to the prior year.

The Company now expects earnings from continuing operations for the fiscal quarter ended January 28, 2006 to be in the range of $0.52 to $0.54 per diluted share. For the fiscal year ended January 28, 2006, the Company expects earnings from continuing operations to be in the range of $0.92 to $0.94 per diluted share.

For the first quarter of fiscal 2006, the Company expects to achieve a low single digit comparable store sales increase. In addition, the Company expects earnings from continuing operations for the first fiscal quarter of 2006 to be in the range of $0.21 to $0.23 per diluted share before the impact of stock based compensation. For the full fiscal year 2006, the Company now anticipates that its earnings per diluted share from continuing operations will be in the range of $1.09 to $1.13 before the impact of stock based compensation. The Company previously announced that it will adopt FAS Statement 123R "Share-Based Payment" beginning in fiscal 2006.