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          Mr. Balmuth continued, “Strong cash flows continue to provide the resources to fund capital investments in new store growth and infrastructure, as well as the Company’s stock repurchase and dividend programs.  During the first six months of 2004, we repurchased 4.5 million shares of common stock for an aggregate of $124 million under the two-year $350 million program authorized by our Board of Directors in early 2004.  We ended the quarter with 147.5 million shares of common stock outstanding.” 

          “Looking ahead, our healthy financial position provides us with a solid foundation on which to grow.  We still expect to open 80 net locations in 2004 to end the year with 648 stores in 26 states and Guam, or square footage expansion of 14%.”

          “Last week, the first three of ten planned initial dd’s DISCOUNTS^SM stores had their grand openings in Northern California.  This exciting new off-price concept delivers exceptional values to consumers with household incomes of $30,000 to $40,000, one of the fastest-growing demographics in the country.  With a potential of at least 500 locations, we believe dd’s DISCOUNTS^SM has the ability to significantly enhance our growth prospects over the next five to ten years,” noted Mr. Balmuth.

          The Company will provide additional details concerning its second quarter results and business outlook on a conference call to be held on Wednesday, August 18, 2004 at 11:00 a.m. Eastern Daylight time.  Participants may listen to a real time audio webcast of the conference call by visiting the Company’s web site located at www.rossstores.com.   A recorded version of the call will also be available until the end of the month at the web site address and via a telephone recording through August 25, 2004 at 402-220-5900, PIN #2342.

           Forward-Looking Statements:  This press release and the conference call information and transcript on the Company’s website contain forward-looking statements regarding new store growth and expected sales and earnings levels and forward-looking statements regarding the time needed to remedy ongoing difficulties with new core merchandising information systems and the severity, duration and financial impact of resulting in-store inventory imbalances, all of which are subject to risks and uncertainties that could cause the Company’s actual results to differ materially from management’s current expectations.  The Company is continuing to assess the new information systems, and cannot be certain that all problems have currently been discovered or that their scope is understood.  The words “plan,” “expect,” “anticipate,” “estimate,” “believe,” “forecast,” “project,” “guidance” and similar expressions identify forward-looking statements. Risk factors for Ross Stores and dd’s DISCOUNTS^SM include the Company’s ability to successfully implement and correct difficulties in various new supply chain and merchandising systems, including generation of all necessary information in a timely and cost effective manner, obtaining acceptable new store locations, competitive pressures in the apparel industry, changes in the level of consumer spending on or preferences for apparel or home-related merchandise, changes in geopolitical and general economic conditions, and unseasonable weather trends, lower than planned gross margin and greater than planned operating costs.  Other risk factors are detailed in the Company’s Form 10-K for fiscal 2003.  The factors underlying our forecasts are dynamic and subject to change.  As a result, our forecasts speak only as of the date they are given and do not necessarily reflect the Company’s outlook at any other point in time.  The Company does not undertake to update or revise these forward-looking statements.