Profile/Investment Highlights
(NYSE: GOT)

Overview
Gottschalks Inc. is a regional department and specialty store chain based in Fresno, California. The Company currently operates 64 full-line "Gottschalks" department stores which offer moderate to better brand-name merchandise and are located in California, Washington, Alaska, Idaho, Oregon and Nevada. The Company also operates 11 "Village East" and "Gottschalks" specialty stores, which carry a more limited selection of merchandise. Gottschalks' dedication to customer service and quality merchandise has made it one of the most popular regional retail establishments in the Western U.S.

The Company has operated for 100 years since its founding by Emil Gottschalk in 1904. In 1986, when the Company announced its initial public offering, it operated 10 department stores. Since then, a total of 54 department stores and 11 specialty stores have been added and the Company has expanded to serve 50 markets in the Western region.

Leader in Secondary Markets in the West
The Company has a strong presence and a recognized brand in secondary markets in the Western U.S. Gottschalks' stores are primarily anchor tenants of regional shopping malls or strategically located strip centers in the markets it serves.

Growth Through Store Expansion
Through its July 2000 acquisition of Lamonts Apparel, and new store openings in Oregon, Washington and California, the Company has expanded its reach in the Western region, allowing it to better serve its target markets. Gottschalks' goal is to open two to four new stores per year, strengthening its presence in existing markets, as well as entering new markets to increase its market share and penetration.

Successful Merchandising and Marketing Strategies
The Company has implemented successful merchandising strategies such as its "Key Item" program and maintains a team of Planning and Allocation Specialists to boost sales in specific divisions and tailor its merchandise selection to local market trends. Gottschalks is highly promotional within its markets with a heavy mix of newspaper and broadcast. Gottschalks also utilizes its private label credit card and in-store customer relationship programs to more effectively target its direct marketing efforts, contributing to increased revenues.

Long-Term Customer Relationships
The Company's unique "home town store" positioning and culture combined with its commitment to superior service and quality merchandise, foster loyal, long-term relationships with its customers and the communities they serve. In addition to providing a high level of personal sales assistance, the Company believes that well-stocked stores, a liberal return and exchange policy, frequent sales promotions and a conveniently located and attractive shopping environment enhance its customers' shopping experience and increases customer loyalty.