Costco Wholesale Corporation Reports First Quarter Operating Results for Fiscal 2006

Net sales for the first quarter of fiscal 2006 increased 12% to$12.66 billion from $11.34 billion during the first quarter of fiscal2005. On a comparable warehouse basis, that is warehouses open atleast one year, net sales increased 9%.

Net income for the first quarter of fiscal 2006 increased 12% to$215.8 million, or $.45 per diluted share, from $193.2 million, or$.40 per diluted share, during the first quarter of fiscal 2005. Thisyear's fiscal first quarter results included a pretax charge ofapproximately $7.6 million ($.01 per share) related to damage fromhurricane Wilma in Florida. Last year's fiscal first quarter resultsincluded a pretax charge of approximately $6.4 million ($.01 pershare) related to damage from four Florida hurricanes.

Costco currently operates 471 warehouses, including 346 in theUnited States and Puerto Rico, 66 in Canada, 17 in the United Kingdom,five in Korea, four in Taiwan, five in Japan and 28 in Mexico. TheCompany also operates Costco Online, an electronic commerce web site,at www.costco.com and at www.costco.ca in Canada. The Company plans toopen an additional 18 to 20 new warehouses, including the relocationof two to three warehouses to larger and better-located facilities,prior to the end of its 53-week 2006 fiscal year ending on September3, 2006.

A conference call to discuss these first quarter results isscheduled for 8:00 a.m. (PT) today, December 8, 2005, and is availablevia a webcast on www.costco.com (click on Investor Relations and"Webcasts").

Certain statements contained in this document constituteforward-looking statements within the meaning of the PrivateSecurities Litigation Reform Act of 1995. For these purposes,forward-looking statements are statements that address activities,events, conditions or developments that the Company expects oranticipates may occur in the future. Such forward-looking statementsinvolve risks and uncertainties that may cause actual events, resultsor performance to differ materially from those indicated by suchstatements. These risks and uncertainties include, but are not limitedto, domestic and international economic conditions including exchangerates, the effects of competition and regulation, consumer and smallbusiness spending patterns and debt levels, conditions affecting theacquisition, development, ownership or use of real estate, actions ofvendors, rising costs associated with employees (including health careand workers' compensation costs), rising costs associated with theacquisition of merchandise (including the direct and indirect effectsof the rising cost of petroleum-based products and fuel and energycosts), geopolitical conditions and other risks identified from timeto time in the Company's public statements and reports filed with theSecurities and Exchange Commission.

COSTCO WHOLESALE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share data)
(unaudited)


12 Weeks Ended
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November 20, November 21,
2005 2004
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REVENUE
Net sales................................ $ 12,664,799 $ 11,339,944
Membership fees.......................... 262,554 238,059
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Total revenue........................... 12,927,353 11,578,003
OPERATING EXPENSES
Merchandise costs........................ 11,330,171 10,132,487
Selling, general and administrative...... 1,258,099 1,131,686
Preopening expenses...................... 12,377 10,385
Provision for impaired assets and closing
costs, net.............................. 1,211 2,800
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Operating income........................ 325,495 300,645
OTHER INCOME (EXPENSE)
Interest expense......................... (3,724) (9,642)
Interest income and other................ 25,540 15,590
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INCOME BEFORE INCOME TAXES 347,311 306,593
Provision for income taxes............... 131,493 113,440
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NET INCOME................................ $ 215,818 $ 193,153
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NET INCOME PER COMMON SHARE:
Basic.................................... $ 0.46 $ 0.41
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Diluted.................................. $ 0.45 $ 0.40
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Shares used in calculation (000's)
Basic.................................... 472,717 465,869
Diluted.................................. 486,367 489,284

Dividends per share $ 0.115 $ 0.100