ISSAQUAH, Wash., Dec 13, 2001 (BUSINESS WIRE) -- Costco Wholesale Corporation ("Costco" or the "Company") (Nasdaq: COST) announced today its operating results for the first quarter of fiscal 2002, the 12 weeks ended November 25, 2001.

Sales for the first quarter of fiscal 2002 increased 11% to $8.30 billion from $7.50 billion during the first quarter of fiscal 2001. On a comparable warehouse basis, that is warehouses open at least a year, net sales increased by 5%.

Net income for the first quarter of fiscal 2002 was $129.7 million, or $.28 per diluted share, compared to $129.5 million, or $.28 per diluted share, during the first quarter of fiscal 2001. Net income in the first quarter of fiscal 2002 was impacted by an $8.6 million ($5.1 million after-tax, or $.01 per diluted share) provision for closing costs primarily related to the Company's reorganization and consolidation of its administrative operations in Canada.

Costco currently operates 385 warehouses, including 284 in the United States, 60 in Canada, 11 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 web site, at www.costco.com.

A conference call to discuss these first quarter results is scheduled for 8:00 a.m. (PST), and is available via a webcast on www.costco.com (go to Customer Service, Investor Relations, Financial Releases and click on the "Live Webcast" icon).

                     COSTCO WHOLESALE CORPORATION
              CONDENSED CONSOLIDATED STATEMENTS OF INCOME
             (dollars in thousands, except per share data)
                              (unaudited)
                                                  12 Weeks Ended
                                         -----------------------------
                                         November 25,     November 26,
                                                2001             2000
                                         -----------------------------
REVENUE
  Net sales                               $8,297,076       $7,498,979
  Membership fees and other                  169,477          138,299
                                         -----------------------------
    Total revenue                          8,466,553        7,637,278
OPERATING EXPENSES
  Merchandise costs                        7,434,397        6,713,644
  Selling, general and administrative        786,118          691,127
  Preopening expenses                         22,134           19,680
  Provision for impaired assets and
   closing costs                               8,550            1,000
                                         -----------------------------
    Operating income                         215,354          211,827
OTHER INCOME (EXPENSE)
  Interest expense                            (6,238)          (6,964)
  Interest income and other                    6,977           11,005
                                         -----------------------------
INCOME BEFORE INCOME TAXES                   216,093          215,868
  Provision for income taxes                  86,437           86,347
                                         -----------------------------
NET INCOME                                  $129,656         $129,521
                                         =============================
NET INCOME PER COMMON AND
  COMMON EQUIVALENT SHARE:
                                         -----------------------------
  Basic                                        $0.29            $0.29
                                         =============================
  Diluted                                      $0.28            $0.28
                                         =============================
Shares used in calculation (000's)
  Basic                                      451,990          447,676
  Diluted                                    477,395          473,920

CONTACT: Costco Wholesale Corporation Richard Galanti, 425/313-8203 Bob Nelson, 425/313-8255