THE GAP, INC. AND SUBSIDIARIES COMPUTATION OF EARNINGS PER SHARE Thirteen Weeks Ended Twenty-six Weeks Ended August 2, August 3, August 2, August 3, 1997 1996 1997 1996 Net earnings ($000) $ 69,458 $65,790 $ 153,762 $147,363 Weighted average shares of common stock outstanding during the period 269,687,093 286,179,138 271,581,001 287,092,901 Add incremental shares from assumed exercise of stock options (primary) 5,198,663 3,979,454 4,588,464 3,689,245 274,885,756 290,158,592 276,169,465 290,782,146 Primary earnings per share $ 0.25 $ 0.23 $ 0.56 $ 0.51 Weighted average shares of common stock outstanding during the period 269,687,093 286,179,138 271,581,001 287,092,901 Add incremental shares from assumed exercise of stock options (fully-diluted) 6,662,221 4,034,292 6,406,110 4,137,765 276,349,314 290,213,430 277,987,111 291,230,666 Fully-diluted earnings per share $ 0.25 $ 0.23 $ 0.55 $ 0.51 NOTE: (1The information provided above is presented in accordance with Regulation S-K, Item 601(b)(11), while net earnings per share on the Consolidated Statements of Earnings is presented in accordance with APB Opinion 15. The information in this exhibit is not required under APB Opinion 15, as the difference between primary and fully-diluted earnings per share and earnings per share calculated on a weighted average share bases is less than 3%.