Fawaz Abdulaziz Alhokair & Co. signs exclusive franchise agreement with Gap Inc.

New stores to open from November 2007.

Gap Inc. currently operates over 3,100 stores throughout the world, through a combination of directly operated stores and franchise partnerships. It has been a world leading fashion retail operation since 1969, its products are symbols of fashion and quality and its name is iconic throughout retail and popular culture.

Fawaz Abdulaziz Alhokair & Co. will use its considerable retail expertise to operate these brands throughout the Kingdom, which it believes will be a fantastic addition to the face of retail in Saudi Arabia.

"We believe the introduction of the Gap and Banana Republic will be one of the most eagerly anticipated brand launches within the recent retail history of Saudi Arabia"

said Dr. Abdulmajeed Alhokair, Chief Executive Officer for Fawaz Abdulaziz Alhokair & Co.

In addition, Mr. Ron Young, Senior Vice President of International Strategic Alliances for Gap Inc. stated "We're pleased to have forged a relationship with such an excellent local partner, in addition to strong operational expertise and deep understanding of the local customer base, [Fawaz Alhokair Group] have a track record of successfully introducing well known fashion and apparel brands into international markets."

Fawaz Abdulaziz Alhokair & Co. currently operates over 50 leading international fashion brand franchises through a network of over 720 stores.