THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Gottschalks Inc. (GOT)

5/10/2006 Proxy Information

The Company is indebted to Harris, a stockholder owning more than 5% of the Company's common stock. As described under the heading "Agreements With Nominees," on August 20, 1998 the Company acquired substantially all of the assets and business of Harris. As consideration for the purchase, the Company issued to Harris 2,095,900 shares of common stock and an 8% Non-Negotiable Extendable Subordinated Note and assumed certain other liabilities. On December 7, 2004, a new Subordinated Note due May 30, 2009 superseded the original note. The new Subordinated Note bears interest at a fixed rate of 8% payable semi annually and provides for principal payments of up to $8.0 million prior to its maturity, subject to certain restrictions. Mr. Pont Sánchez and Mr. McPeters are directors of the Company and are also directors and/or executive officers of Harris. Mr. Pont Sánchez is the President and Chief Executive Officer of Harris and is the International Division Director of El Corte Ingles. Mr. McPeters is the Chief Financial Officer of Harris.

5/18/2005 Proxy Information

Mr. Bret Levy is the son of Mr. Joe Levy and Mrs. Sharon Levy.

Mr. McPeters is a director of The Harris Company and Mr. Sanchez is CEO and President of The Harris Company, which owns 15.6% of GOT stock.

The Company is indebted to Harris, a stockholder owning more than 5% of the Company common stock. As described under the heading "Agreements With Nominees," on August 20, 1998 the Company acquired substantially all of the assets and business of Harris. As consideration for the purchase, the Company issued to Harris 2,095,900 shares of common stock and an 8% Non-Negotiable Extendable Subordinated Note and assumed certain other liabilities. On December 7, 2004 a new Subordinated Note due May 30, 2009 superseded the original note. The new Subordinated Note bears interest at a fixed rate of 8% payable semi annually and provides for principal payments of up to $8.0 million prior to its maturity, subject to certain restrictions. Mr. Pont Sánchez and Mr. McPeters are directors of the Company and are also directors and/or executive officers of Harris. Mr. Pont Sanchez is the President and Chief Executive Officer of Harris and is the International Division Director of El Corte Ingles. Mr. McPeters is the Chief Financial Officer of Harris.

6/1/2004 Proxy Information

Mr. Bret Levy is the son of Mr. Joe Levy and Mrs. Sharon Levy.

The Company is indebted to Harris, a stockholder owning more than 5% of the Company common stock. As described under the heading "Agreements With Nominees," on August 20, 1998 the Company acquired substantially all of the assets and business of Harris. As consideration for the purchase, the Company issued to Harris 2,095,900 shares of common stock and an 8% Non-Negotiable Extendable Subordinated Note and assumed certain other liabilities. The Subordinated Note was originally due and payable on August 20, 2003 in the principal amount of $22,179,598. Interest on the Subordinated Note is payable semi-annually. The maturity date of the Subordinated Note was extended to May 30, 2007 because the Company's senior secured revolving credit facility does not permit the repayment of the Subordinated Note. Mr. Pont Sánchez and Mr. McPeters are directors of the Company and are also directors and/or executive officers of Harris. Mr. Pont Sánchez is the President and Chief Executive Officer of Harris and is the International Division Director of El Corte Ingles. Mr. McPeters is the Chief Financial Officer of Harris.

5/30/2003 Proxy Information

Isidoro A. Alvarez Alvarez is a former director of The Harris Company, which owns 15.8% of GOT stock.

Jorge Pont Sanchez is CEO and President of The Harris Company, which owns 15.8% of GOT stock.

Thomas H. McPeters is a director of The Harris Company, which owns 15.8% of GOT stock.

Mr. Bret Levy is the son of Mr. Joe Levy and Mrs. Sharon Levy.