Exhibit 99.2

Analyst Contact:
Jordan Goldstein
(650) 696-2933                                        8:00 am Eastern

                               Gymboree Reports
                             First-Quarter Results

Burlingame, CA, May 18, 2000 - The Gymboree Corporation (Nasdaq: GYMB) today
reported a net loss of $13.8 million, or $(0.56) per share, for the first
quarter.  In 1999, the company reported net income for the first quarter of $4.8
million, or $0.20 per share.

The company reported net sales for the first fiscal quarter ended April 29, 2000
of $100.6 million, compared with sales of $125.7 million for the same period
last year, a 20% decline.  As previously reported, comparable store sales for
the quarter decreased 24% over the same period last year.

"The decline in sales and consequent operating loss in the first quarter are due
to inappropriate inventory in terms of both level and style.  Specifically,
inventories were 29% below last year and the content was not up to the standards
we have set for the third and fourth quarters.  The disappointing sales and
bottom-line performance will likely run through the second quarter due to
continued lean inventory levels and assortment," said Stuart Moldaw, Gymboree's
Chairman and Chief Executive Officer.

He added, "Throughout the second half, however, we expect our inventories to be
25% to 35% above year-ago levels.  We believe our customers will respond
positively to our offerings, and we anticipate a return to profitability in the
second half."

The company announced it has entered into commitments to sell 3,367,000 shares
of its common stock at $2.97 apiece for an aggregate amount of $10.0 million and
has closed the sale of 1.7 million of these shares.  The company expects to
close the remainder of the transactions by June 1.  The purchasers acquiring the
shares in this equity financing are restricted from re-selling their shares for
180 days.  In connection with this equity financing, the company has also
committed to issue warrants for 505,000 shares exercisable at $2.97.

The Gymboree Corporation designs, manufactures and retails unique, high-quality
apparel and accessories for children.  As of April 29, Gymboree operated 605
stores, including 554 stores in the United States, 20 stores in Canada and 31 in
Europe, as well as an online store at www.gymboree.com.  The company also offers
directed parent-child developmental play programs at more than 400 franchised
and company-operated centers in the United States and 14 other countries.

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    The foregoing paragraphs contain forward-looking statements within the
    meaning of the Federal Securities laws including statements about building
    inventories, financial performance in the second quarter, positive customer
    response to our offerings, anticipation of a return to profitability, and
    the expectation of closing additional equity financing commitments.  Actual
    results could differ materially as a result of a number of factors,
    including the successful execution of our plans to build inventory, consumer
    acceptance of our products, general economic conditions, competitive market
    conditions, our ability to control our costs and expenses, and third-party
    investors fulfilling their commitments with regard to the equity financing.
    Other factors that may cause actual results to differ materially include
    those set forth in the reports that the company files from time to time with
    the Securities and Exchange Commission.

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