Target Corporation Second Quarter Earnings Per Share $0.70

"We are pleased with our second quarter and year-to-date results,"said Bob Ulrich, chairman and chief executive officer of TargetCorporation. "We continue to believe Target will deliver strong salesand profit performance in 2006 and generate another year of profitablemarket share growth even in light of the challenges posed by thecurrent economic environment."

Total revenues in the second quarter increased 11.3 percent to$13.347 billion from $11.990 billion in 2005, driven by thecontribution from new store expansion, a 4.6 percent increase incomparable store sales and the contribution from our credit cardoperations. (Total revenues include retail sales and net credit cardrevenues. Comparable-store sales are sales from stores open longerthan one year.)

Earnings before interest expense and income taxes (EBIT) in thesecond quarter of 2006 increased 15.9 percent to $1.134 billion,compared with $979 million in the second quarter a year ago. Both ourcore retail operations and our credit card operations contributedsignificantly to this EBIT growth. Within our retail operations, grossmargin rate was essentially unchanged from an exceptional prior yearlevel, while the company's expense rate in the quarter was somewhatunfavorable to the prior year. (Gross margin rate represents salesless cost of sales expressed as a percentage of sales. Expense raterepresents selling, general and administrative expenses expressed as apercentage of sales.)

Net interest expense for the quarter increased $30 millioncompared with second quarter 2005, primarily due to higher averagedebt balances, and to a lesser extent, due to a higher averageportfolio rate.

Earnings before taxes (EBT) in the second quarter totaled $994million, representing an increase of $125 million, or 14.5 percent,from the same period in 2005. The contribution from the company'scredit card operations to these results was $168 million, an increaseof $58 million, or 52.7 percent, from a year ago.

Other Factors

The company's effective income tax rate for the second quarter was38.8 percent in 2006 compared with 37.9 percent in 2005. For the fullyear, the effective income tax rate is now expected to be between 38.3and 38.8 percent.

The company has Board authorization to repurchase $5 billion ofits common stock. Under this program, the company repurchased $550million of its common stock during the second quarter of 2006,acquiring 11.3 million shares at an average price of $48.63 per share.Program to-date, the company has acquired 69.5 million shares of itscommon stock at an average price per share of $48.55, reflecting atotal investment of approximately $3.37 billion. The company expectsto continue to execute this program primarily in open markettransactions, subject to market conditions, and expects to completethe total program by year-end 2008, or sooner.

Miscellaneous

Target Corporation will webcast its second quarter earningsconference call at 9:30am CDT today. Investors and the media areinvited to listen to the call through the company's website atwww.target.com/investors (click on "webcasts"). A telephone replay ofthe call will be available beginning at approximately 11:30am CDTtoday through the end of business on August 11, 2006. The replaynumber is (800) 642-1687 (passcode: 1291511).

Forward-looking statements in this release should be read inconjunction with the cautionary statements in Exhibit (99)C to thecompany's 2005 Form 10-K.

Target Corporation's operations include large, general merchandisediscount stores and a fully integrated on-line business through whichwe offer a fun and convenient shopping experience with thousands ofhighly differentiated and affordably priced items. The company givesback more than $2 million each week to its local communities throughgrants and special programs. The company currently operates 1,444Target stores in 47 states.

Target Corporation news releases are available at www.target.com.

CONSOLIDATED RESULTS OF OPERATIONS


Thirteen Weeks Ended Twenty-Six Weeks Ended
------------------------ ------------------------
(Millions, except July 29, July 30, July 29, July 30,
per share data) % %
(Unaudited) 2006 2005 Change 2006 2005 Change
-------- -------- ------ -------- -------- ------

Sales $12,959 $11,667 11.1% $25,453 $22,838 11.4%
Net credit card
revenues 388 323 19.9 757 629 20.5
-------- -------- ------ -------- -------- ------

Total revenues 13,347 11,990 11.3 26,210 23,467 11.7

Cost of sales 8,686 7,828 11.0 17,159 15,384 11.5
Selling, general and
administrative
expenses 2,987 2,650 12.7 5,865 5,145 14.0
Credit card expenses 170 187 (9.5) 330 366 (9.9)
Depreciation and
amortization 370 346 6.9 704 686 2.7
-------- -------- ------ -------- -------- ------

Earnings before
interest expense
and income taxes 1,134 979 15.9 2,152 1,886 14.1
-------- -------- ------ -------- -------- ------

Net interest expense 140 110 27.3 272 221 23.0
-------- -------- ------ -------- -------- ------

Earnings before
income taxes 994 869 14.5 1,880 1,665 13.0

Provision for income
taxes 385 329 17.1 718 631 13.7
-------- -------- ------ -------- -------- ------

Net earnings $609 $540 12.9% $1,162 $1,034 12.5%
======== ======== ====== ======== ======== ======


Basic earnings per
share: $0.71 $0.61 15.8% $1.34 $1.17 15.0%
======== ======== ====== ======== ======== ======

Diluted earnings per
share: $0.70 $0.61 16.0% $1.33 $1.16 15.0%
======== ======== ====== ======== ======== ======

Weighted average common shares outstanding:
Basic 860.8 883.3 865.7 885.1
Diluted 867.2 891.2 872.4 892.4


CONSOLIDATED STATEMENTS OF FINANCIAL POSITION


SUBJECT TO RECLASSIFICATION
(Millions) July 29, July 30,
(Unaudited) 2006 2005
-------- --------

ASSETS
Cash and cash equivalents $477 $696
Accounts receivable, net 5,540 5,012
Inventory 6,275 5,628
Other current assets 1,297 1,001
-------- --------
Total current assets 13,589 12,337
-------- --------

Property and equipment, net 20,257 18,023
Other non-current assets 1,577 1,559
-------- --------
Total assets $35,423 $31,919
======== ========

LIABILITIES AND SHAREHOLDERS' INVESTMENT
Accounts payable $5,868 $5,472
Current portion of long-term debt and notes payable 1,257 753
Other current liabilities 2,535 1,812
-------- --------
Total current liabilities 9,660 8,037
-------- --------

Long-term debt 9,351 8,226
Deferred income taxes 768 973
Other non-current liabilities 1,271 1,161
Shareholders' investment 14,373 13,522
-------- --------
Total liabilities and shareholders' investment $35,423 $31,919
======== ========

Common shares outstanding 857.8 884.7


CONSOLIDATED STATEMENTS OF CASH FLOWS


SUBJECT TO RECLASSIFICATION Twenty-Six Weeks Ended
----------------------
(Millions) July 29, July 30,
(Unaudited) 2006 2005
----------- ----------

OPERATING ACTIVITIES
Net earnings $1,162 $1,034

Reconciliation to cash flow:
Depreciation and amortization 704 686
Stock based compensation expense 38 57
Deferred income taxes (112) -
Bad debt provision 181 217
Loss on disposal of property and equipment,
net 47 43
Other non-cash items affecting earnings 20 (33)
Changes in operating accounts
providing/(requiring) cash:
Accounts receivable originated at
Target 17 17
Inventory (437) (244)
Other current assets 48 191
Other non-current assets 5 (8)
Accounts payable (400) (307)
Accrued liabilities 64 73
Income taxes payable (179) (286)
Other 11 18
----------- ----------
Cash flow provided by operations 1,169 1,458
----------- ----------

INVESTING ACTIVITIES
Expenditures for property and equipment (1,899) (1,774)
Proceeds from disposal of property and
equipment 15 13
Change in accounts receivable originated at
third parties (73) (177)
Other (111) -
----------- ----------
Cash flow required by investing activities (2,068) (1,938)
----------- ----------

FINANCING ACTIVITIES
Increase in notes payable, net 748 -
Additions to long-term debt 750 -
Reductions of long-term debt (750) (513)
Dividends paid (174) (142)
Repurchase of stock (900) (533)
Stock option exercises 50 120
Stock-based compensation tax benefit 8 -
Other (4) (1)
----------- ----------
Cash flow required by financing activities (272) (1,069)
----------- ----------

Net decrease in cash and cash equivalents (1,171) (1,549)

Cash and cash equivalents at beginning of
period 1,648 2,245

----------- ----------
Cash and cash equivalents at end of period $477 $696
=========== ==========


(Unaudited)

NUMBER OF STORES, RETAIL SQUARE FEET and COMPARABLE-STORE SALES
Retail square feet in thousands; reflects total square feet less
office, distribution center and vacant space.

Number of Stores Retail Square Feet
----------------- -------------------------
July 29, July 30, July 29, July 30, %
2006 2005 2006 2005 Change
-------- -------- -------- -------- -------
Target General Merchandise
Stores 1,282 1,210 156,036 146,096 6.8%
SuperTarget Stores 162 141 28,641 24,936 14.9
-------- -------- -------- -------- -------
Total 1,444 1,351 184,677 171,032 8.0%
======== ======== ======== ======== =======

Thirteen Weeks Twenty-Six Weeks
Ended Ended
-----------------------------------
July 29, July 30, July 29, July 30,
2006 2005 2006 2005
-------- -------- -------- --------
Comparable-Store Sales 4.6% 6.7% 4.9% 6.5%
======== ======== ======== ========


CREDIT CARD CONTRIBUTION
TO EBT
Thirteen Weeks Twenty-Six Weeks
Ended Ended
----------------- -----------------
(millions) July 29, July 30, July 29, July 30,
2006 2005 2006 2005
-------- -------- -------- --------
Revenues
Finance charges $273 $219 $532 $424
Interest expense (a) (68) (43) (131) (83)
-------- -------- -------- --------
Net interest income 205 176 401 341
-------- -------- -------- --------

Late fees and other
revenues 80 74 160 148
Merchant fees
Intracompany 18 17 33 32
Third-party 35 30 65 57
-------- -------- -------- --------
Non-interest income 133 121 258 237
-------- -------- -------- --------

Expenses
Bad debt 93 111 181 217
Operations and marketing 77 76 149 149
-------- -------- -------- --------
Total expenses 170 187 330 366
-------- -------- -------- --------

Credit card contribution
to EBT $168 $110 $329 $212
======== ======== ======== ========

As a percent of average
receivables (annualized) 11.3% 8.2% 11.1% 7.9%
======== ======== ======== ========

Net interest margin
(annualized) (b) 13.9% 13.2% 13.5% 12.8%
======== ======== ======== ========


RECEIVABLES

Period-end receivables $6,041 $5,421
Average receivables $5,936 $5,328 $5,945 $5,336
Accounts with three or
more payments past due as
a percent of period-end
receivables 3.4% 3.0%


ALLOWANCE FOR DOUBTFUL
ACCOUNTS

Allowance at beginning of
period $476 $394 $451 $387
Bad debt provision 93 111 181 217
Net write-offs (68) (96) (131) (195)
-------- -------- -------- --------
Allowance at end of period $501 $409 $501 $409
======== ======== ======== ========

As a percent of period-end
receivables 8.3% 7.5% 8.3% 7.5%
======== ======== ======== ========

Net write-offs as a
percent of average
receivables (annualized) 4.6% 7.2% 4.4% 7.3%
======== ======== ======== ========


(a) Represents an allocation of consolidated interest expense based on
estimated funding costs for average net accounts receivable and
other financial services assets. Interest expense allocated to our
credit card operations for the first, second, third, and fourth
quarters 2005 totaled $40, $43, $50, and $59, respectively.

(b) Net interest income divided by average accounts receivable.