Jan 4, 2001

Gymboree Reports December Sales

Burlingame, CA, January 4, 2001. The Gymboree Corporation (Nasdaq: GYMB) reported net sales for the five-week period ended December 30, 2000, of $68.2 million, an increase of 45% from sales of $47.0 million for the same period last year. Comparable store sales for the five-week period increased 45% compared to the same period last year.

Net sales for the 48 weeks ended December 30, 2000, were $410.4 million, a decrease of 1% from sales of $415.1 million for the same period last year. Comparable store sales for the period decreased 3% compared to last year.

"We are very pleased with both the continued strong positive customer response to our merchandise and the knowledge gained during the recent rebound in our business, which will enable us to begin to move gross profit rates toward historically higher levels," said Stuart Moldaw, Gymboree’s Chairman and Chief Executive Officer.

Mr. Moldaw indicated the following expectations for Gymboree’s future performance:

Gymboree will report January and full-year sales on February 8, and will report fourth-quarter results on March 8.

The Gymboree Corporation designs, manufactures and retails unique, high-quality apparel and accessories for children. As of December 30, 2000, Gymboree operated 601 stores, including 549 stores in the United States, 20 stores in Canada and 32 in Europe, as well as an online store at The company also offers directed parent-child developmental play programs at more than 430 franchised and company-operated centers in the United States and 15 other countries.

The foregoing November and year-to-date sales figures are unaudited and subject to quarter-end and year-end adjustment and could differ materially from those indicated. The foregoing paragraphs contain forward-looking statements relating to Gymboree’s anticipated sales growth and future financial performance. These are forward looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results could differ materially as a result of a number of factors, including customer reactions to new merchandise and marketing activity, success in meeting our delivery targets, the level of our promotional activity, our ability to maintain appropriate inventory aging, general economic conditions, and competitive market conditions. Other factors that may cause actual results to differ materially include those set forth in the reports that we file from time to time with the Securities and Exchange Commission.