Costco Gets International Lift as August Comps Rise 4%

Costco Wholesale Corporation reported net sales of $3.65 billion for the four weeks ended August 29, 2004, an increase of 7% from $3.42 billion in the same four-week period of the prior fiscal year.

For the 16-week fiscal fourth quarter ended August 29, 2004, the Company reported net sales of $14.84 billion, an increase of 11 percent from $13.42 billion during last year's fiscal fourth quarter.

For the 52-week fiscal year ended August 29, 2004, the Company reported net sales of $47.15 billion, an increase of 13 percent from $41.69 billion during the prior fiscal year.

Comparable sales for the 4-week, 16-week and 52-week periods ended August 29, 2004, were as follows:

                   4 Weeks       16 Weeks       52 Weeks
                 ------------  ------------  --------------
US                    3%            8%              9%
International         9%            6%             14%

Total Company         4%            8%             10%
                 ============  ============  ==============

Reported net sales were reduced by the implementation of Emerging Issues Task Force Issue No. 03-10 (“EITF 03-10”), “Application of Issue No. 02-16 by Resellers to Sales Incentives Offered to Consumers by Manufacturers,” which was effective at the beginning of the Company's fiscal third quarter, February 16, 2004. Had sales for the 4-week, 16-week and 52-week periods last year been reported under EITF 03-10, total Company reported net sales increases would have been 9 percent, 12 percent and 14 percent, respectively, and Company comparable sales increases would have been 6 percent, 9 percent and 11 percent, respectively.