Ross Stores Sees Q3 Net Income, Sales Grow 12%

Ross Stores, Inc. reported 2003 third quarter net earnings grew 12% to $50.5 million, or 65 cents per share, from $45.1 million, or 57 cents per share, in the year-ago period. Third quarter sales in 2003 grew 12% to $977 million from $870 million in Q3 2002. Comparable store sales for the third quarter of 2003 grew 2% on top of a 7% increase in the prior year period.

For the 39 weeks ended November 1, 2003, earnings per share increased 12%
to $1.99. These results were on top of a 38% gain for the 39 weeks ended
November 2, 2002, when the Company reported earnings per share of $1.78. Net
earnings year to date in 2003 grew 8% to $154.4 million, from $142.4 million
reported for the first nine months of 2002. Year-to-date sales in 2003 grew
10% to $2.822 billion. These gains were on top of 20% growth for the
comparable 2002 year-to-date period when sales totaled $2.567 billion. Same
store sales for the first nine months of 2003 were flat on top of a robust 9%
gain in the prior year period.

Michael Balmuth, Vice Chairman and Chief Executive Officer, commented,
“Our ongoing ability to deliver competitive discounts on a wide array of
exciting name brand fashions for the family and the home resulted in
respectable sales increases during the third quarter. Business benefited from
strong same store sales gains in our Home departments and the back-to-school
categories of Juniors, Shoes and Accessories. In addition, continued effective
control of both inventories and expenses contributed to stable operating
margins and healthy earnings growth for the period.”

“During the third quarter, we opened an additional 20 stores, for a total
of 66 new locations in 2003. After closing five older stores in January 2004,
we expect to end the current year with 568 stores in 25 states,” noted
Mr. Balmuth.

Mr. Balmuth continued, “In addition, we recently announced the development
of dd's DISCOUNTS(SM), a new concept targeted to serve the needs of
lower-income households, the fastest growing demographic market in the
country. As previously noted, our goal is to open ten initial dd's
DISCOUNTS(SM) locations on the west coast during the second half of 2004.”

Mr. Balmuth concluded, “During the first nine months of 2003, we
repurchased 3.0 million shares of common stock for an aggregate of
$125.2 million under the two-year $300 million program authorized by our Board
of Directors in early 2002. We ended the quarter with 75.7 million shares of
common stock outstanding and approximately $24.8 million remaining under this
repurchase authorization, which we expect to complete this year.”

                              ROSS STORES, INC.
                CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

                                   Three Months Ended    Nine Months Ended
    ($000, except per share data,   Nov. 1,   Nov. 2,    Nov. 1,     Nov. 2,
     unaudited)                      2003      2002       2003        2002

    Sales                          $976,940  $870,196  $2,821,834  $2,566,738

    Costs and Expenses
      Cost of goods sold, including
       related buying, distribution
       and occupancy costs          730,245   649,694   2,107,699   1,908,128
      Selling, general and
       administrative               163,962   146,398     460,933     424,235
      Interest (income) expense,
       net                             (142)       85        (273)        493
        Total costs and expenses    894,065   796,177   2,568,359   2,332,856

    Earnings before income taxes     82,875    74,019     253,475     233,882

    Provision for taxes on earnings  32,404    28,941      99,109      91,448
    Net earnings                    $50,471   $45,078    $154,366    $142,434

    Earnings per share
      Basic                           $0.67     $0.58       $2.02       $1.82
      Diluted                         $0.65     $0.57       $1.99       $1.78