THE GAP, INC. AND SUBSIDIARIES COMPUTATION OF EARNINGS PER SHARE Thirteen Weeks Ended Thirty-Nine Weeks Ended November 1, 1997 November 2, 1996 November 1, 1997 November 2, 1996 Net earnings ($000) $ 164,523 $134,310 $ 318,285 $281,673 Weighted average shares of common stock outstanding during the period 266,784,436 281,746,335 269,982,251 285,302,456 Add incremental shares from assumed exercise of stock options (primary) 7,258,911 3,791,197 5,636,174 3,729,777 274,043,347 285,537,532 275,618,425 289,032,233 Primary earnings per share $ 0.60 $ 0.47 $ 1.15 $ 0.97 Weighted average shares of common stock outstanding during the period 266,784,436 281,746,335 269,982,251 285,302,456 Add incremental shares from assumed exercise of stock options (fully-diluted) 7,890,377 3,790,834 7,740,007 3,732,400 274,674,813 285,537,169 277,722,258 289,034,856 Fully-diluted earnings per share $ 0.60 $ 0.47 $ 1.15 $ 0.97 NOTE: (1) The 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%.