EXHIBIT 99.1

                                                 INVESTOR RELATIONS CONTACT:
                                                 Blair W. Lambert
                                                 Tel: 415-278-7933
                                                 investor_relations@gymboree.com

                                                 MEDIA RELATIONS CONTACT:
                                                 Jamie Falkowski
                                                 Tel: 415-278-7472
                                                 media_relations@gymboree.com

         THE GYMBOREE CORPORATION REPORTS JULY AND SECOND QUARTER SALES

San Francisco, Calif., August 3, 2006 - The Gymboree Corporation (NASDAQ: GYMB)
reported net sales from retail operations for the four-week period ended July
29, 2006 of $49.5 million, an increase of 13% compared to net sales from retail
operations of $43.9 million for the same four-week period last year. Comparable
store sales for the four-week period increased 6% compared to a 10% increase in
comparable store sales for the same period last year.

Net sales from retail operations for the second fiscal quarter of 2006 were
$153.0 million, an increase of 18% compared to net sales from retail operations
of $129.3 million for the second fiscal quarter of last year. Comparable store
sales for the second fiscal quarter increased 12% compared to a 9% increase in
comparable store sales for the same period in fiscal 2005.

"July proved to be a very successful month," said Matthew McCauley, Chairman and
Chief Executive Officer. "The product assortment was well received and our
month-end Gymbucks promotion exceeded expectations. As a result, we are
increasing our financial outlook for the fiscal quarter."

The Company now anticipates a loss for the second fiscal quarter of 2006 to be
in the range of $0.04 to $0.02 per diluted share, including a charge of $0.07
per diluted share relating to the previously announced retirement of the
Company's former Chairman and Chief Creative Officer. For the full fiscal year,
the Company is now expecting earnings in the range of $1.42 to $1.45 per diluted
share. The Company will provide details on third and fourth quarter financial
expectations in conjunction with its second quarter earnings conference call on
August 16, 2006.



MANAGEMENT PRESENTATIONS

For more information about July sales, please listen to The Gymboree
Corporation's monthly sales recording by calling the Company's Investor
Relations Hotline at 415-278-7933. The recording will be available Thursday,
August 3 at 7:55 a.m. ET through Wednesday, August 9 at 11:59 p.m. PT.

The live broadcast of the discussion of the second quarter 2006 financial
results will be available to interested parties at 1:30 p.m. PT (4:30 p.m. ET)
on Wednesday, August 16, 2006. To listen to the live broadcast over the
Internet, please log on to www.gymboree.com, click on "Our Company" at the
bottom of the page, go to "Investor and Media Relations" and then "Conference
Calls, Webcasts & Presentations." A replay of the call will be available two
hours after the broadcast through midnight ET, Wednesday, August 23, 2006, at
800-642-1687, passcode 4081957, as well as archived on our Web site at the same
location as the live Web cast.

ABOUT THE GYMBOREE CORPORATION

The Gymboree Corporation's specialty retail brands offer unique, high-quality
products delivered with personalized customer service. As of July 29, 2006, the
Company operated a total of 684 stores: 570 Gymboree(R) retail stores (542 in
the United States and 28 in Canada), 27 Gymboree Outlet retail stores, 70 Janie
and Jack(R) retail shops and 17 Janeville(R) stores in the United States. The
Company also operates online stores at www.gymboree.com and
www.janieandjack.com, and offers directed parent-child developmental play
programs at 528 franchised and company-operated centers in the United States and
27 other countries.

FORWARD-LOOKING STATEMENTS

The foregoing sales figures for the four-week period and second fiscal
quarter-ended July 29, 2006 are un-audited and subject to quarter-end and
year-end adjustment, and could differ materially from the financial information
indicated. The foregoing paragraphs contain forward-looking statements relating
to anticipated sales growth and cash flows 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, service levels and new concepts, success in
meeting our delivery targets, the level of our promotional activity, our gross
margin achievement, our ability to appropriately manage inventory, general
economic conditions, effects of future embargos from countries used to source
product, 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, including our
annual report on Form 10-K for the year-ended January 28, 2006. These
forward-looking statements reflect The Gymboree Corporation's expectations as of
July 29, 2006. The Gymboree Corporation undertakes no obligation to update the
information provided herein.

Gymboree, Janie and Jack, and Janeville are registered trademarks of The
Gymboree Corporation.