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Business Description
Costco Wholesale Corporation operates membership warehouses based on the concept that offering members very low prices on a limited selection of nationally branded and selected private label products in a wide range of merchandise categories will produce high sales volumes and rapid inventory turnover. Costco operates 389 warehouses, including 285 in the United States, 60 in Canada, 14 in the United Kingdom, five in Korea, three in Taiwan, two in Japan and 20 in Mexico. The Company also operates Costco Online, an electronic commerce Website, at www.costco.com. Costco's membership format is designed to reinforce customer loyalty and provide a continuing source of membership fee revenue. Costco has two primary types of members: Business and Gold Star (individual) members. In addition, the Company offers an Executive Membership program to both Business and Gold Star members.

Financial Information
Costco Wholesale Corporation operates warehouses that offer low prices on a limited selection of nationally branded and selected private label products in a wide range of categories in no-frills, self-service warehouses. For the 36 weeks ended 5/12/02, revenues increased 12% to $26.47 billion. Earnings rose 10% to $452.6 million. Results reflect the opening of 29 new warehouses, partially offset by higher expense ratios at new warehouses.