Gymboree Play & Music Expands to New Territories

Business Wire, Oct 26, 1999

BURLINGAME, Calif.--(BUSINESS WIRE)--Oct. 26, 1999--

Gymboree Play & Music Inc., a subsidiary of the Gymboree Corporation (Nasdaq: GYMB), today announced appointment of master franchisees in the United Kingdom, Puerto Rico and Ireland, bringing to 13 the number of countries of operation.

Gymboree Play & Music Programs offer age-appropriate developmental play and music activities for parents and children up through age 4 at 409 sites worldwide. In addition to the U.S., the programs are available in Australia, Canada, Colombia, France, Indonesia, South Korea, Mexico, Singapore and Taiwan.

"We are very pleased to take this important step in our international expansion," said Bob Campbell, President of Gymboree Play & Music. "Further transactions appointing master franchisees are pending in Central America, the Middle East, Taiwan and the Philippines. Our objective is to expand into several other territories over the next four years, and at the same time complete our development in regions where Gymboree already has a presence."

Mr. Campbell also announced that Gymboree Play & Music has engaged the services of franchise consultant Mike Minihane to provide international franchisees with developmental assistance.

Gary White, Gymboree's Vice-Chair and Chief Executive Officer, said, "We believe the appointment of these three master franchisees is a significant step in our expansion plans. We see worldwide growth opportunities for our Play & Music business, as we believe parents everywhere recognize the importance and the fun of organized play activities for their children."

The Gymboree Corporation designs, manufactures and retails unique, high-quality apparel and accessories for children. As of October 18, Gymboree operated 602 stores, including 554 stores in the United States, 19 stores in Canada and 29 in Europe, as well as an online store at www.gymboree.com. Gymboree also offers directed parent-child developmental play programs.

The foregoing paragraphs contain forward-looking statements within the meaning of the Federal Securities laws including statements about growth of Play & Music Programs. Actual results could differ materially as a result of a number of factors, including our success in qualifying and contracting with new franchisees, our ability to continue to expand our Play & Music Programs internationally, our ability to complete our development of Play & Music Programs in regions where we already have a presence, political and economic conditions in those regions, and consumer acceptance of our programs. 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.