Ross Stores, Inc. reported that earnings per share for the 13 weeks ended August 2, 2003 grew 13% to $.70, from $.62 in the prior year. Net earnings for the same period were $54.6 million, compared to $49.7 million for the 13 weeks ended August 3, 2002. Current year second quarter sales rose 10% to $966 million, from $877 million for the quarter ended August 3, 2002. Comparable store sales for the period were flat on top of a 9% increase in the prior year.

For the six months ended August 2, 2003, earnings per share increased 10% to $1.33, from $1.21 in the prior year. Net earnings for the same period totaled $103.9 million, compared to $97.4 million for the same period in 2002. Sales for the first six months rose 9% to $1.845 billion, with same store sales down 1% on top of a 10% gain in the prior year period.

Michael Balmuth, Vice Chairman and Chief Executive Officer, commented, “We are pleased to report that sales during the second quarter performed in line with our expectations versus very strong increases in 2002. Effective control of both inventories and expenses throughout the second quarter also contributed to respectable earnings growth for the period. Lower benefit and incentive plan costs as a percent of sales, along with improved distribution and advertising expenses helped to offset a slight decline in merchandise margins and higher occupancy costs as a percent of sales compared to the second quarter of 2002. As a result, operating margin was relatively flat to the prior year at 9.3%.

“Consistent with our long-term plan for 12% annual unit growth, we expect to add about 61 locations in 2003 to end the current year with 568 stores in 25 states. A total of 46 locations opened during the first six months of 2003, including our initial entry into the states of Tennessee and Louisiana. We are also pleased to note that our new Perris, Calif., Distribution Center is expected to open as planned in September 2003. This new facility is projected to gradually ramp up to targeted production levels by the end of 2003, as we transition our West Coast distribution function from Newark to Perris, Calif. We expect this process to be complete by the end of the fiscal year,” noted Mr. Balmuth.

Mr. Balmuth continued, “We remain committed to returning capital to stockholders through our stock repurchase and dividend programs. During the first six months of 2003, we repurchased 2.1 million shares of common stock for an aggregate of $83.6 million under the two-year $300 million program authorized by our Board of Directors in early 2002. We ended the quarter with 76.1 million shares of common stock outstanding and approximately $66.4 million remaining under this repurchase authorization, which we expect to complete in fiscal 2003.”

ROSS STORES, INC. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

     ($000, except          Three Months Ended         Six Months Ended
     per share data,      August 2,    August 3,    August 2,     August 3,
     unaudited)             2003          2002         2003         2002

    Sales                 $965,610      $876,932   $1,844,894    $1,696,542

    Costs and Expenses
     Cost of goods
      sold, including
      related buying,
      distribution
      and occupancy
      costs                724,206       656,577    1,377,454     1,258,434
     Selling, general
      and administrative   151,832       138,582      296,971       277,837
     Interest (income)
      expense                 (61)           184        (131)           408
                           875,977       795,343    1,674,294     1,536,679

    Earnings before
     income taxes           89,633        81,589      170,600       159,863

    Provision for
     taxes on earnings      35,047        31,901       66,705        62,506
    Net earnings           $54,586       $49,688     $103,895       $97,357

    Earnings per share
     Basic                   $0.72         $0.63        $1.36         $1.24
     Diluted                 $0.70         $0.62        $1.33         $1.21