Key questions from the first quarter earnings call conducted by Limited Brands, Inc. on May 22, 2008.

Paul Alexander (Merrill Lynch): Could you give color on the rationale behind the decision to slow store growth, and how much is that related to the economy or other factors?

Stuart Burgdoerfer: What we are trying to balance is, as, was laid out now a year and a half to two years ago, we do have a strategy to grow square footage in the United States based on our view of the sales, the profits, the return potential associated with that square footage growth. With that said, we are aware and mindful of the general economic trends, and we are, as we talked about in prior calls, closely monitoring the results of the activity that we are investing in, so specifically around expansions for the most part but also new stores. And so it is about balancing risk, risk taking, considering the trend in the business and the environment that we are doing business in. we are trying to strike the right balance.

Brian Tunick (J.P. Morgan): How do you think about growing Pink versus the core foundation business?

Sharen Turney: Success would look like both businesses have great growth. The core continues to have growth, and speaking about the Pink business, what we are looking at is expanded square footage. As we take our stores from 6,000 to 7,000 square feet to 10,000 to 12,000 square feet in some stores, Pink is basically getting the majority of that expanded space. Where they may be under 1,000, now we are looking between 2,500 and 3,000 square feet. When you think about Pink as well, the opportunity in terms of growing adjacencies, such as the Accessory business, which is a focus for us as we go into this fall season - and if you have been to any of the stores, you will have seen some of the accessories and luggage pieces of business - we still believe that we have not tapped into the bra business as much as we should into Pink. We see that as a growth opportunity. We do have today four freestanding stores, and we are excited about the learns that we are getting from those stores. Then as we talked about, we will be announcing some future opportunities for us later in the summer. I do feel like there is still plenty of growth opportunity in Pink, and what we are doing in terms of the core business is where we started to get younger and almost overlap with Pink, we are saying this Pink is focused to the 19-year-old customer and the core business is focused on the 26year-old customer and being more definitive about those lines.

Neely Tamminga (Piper Jaffray): Could you talk about the skew productivity that you have been doing?

Diane Neal: We have run last fall and continue to run this spring assortment optimization tests. We have taken that learning and we have implemented those learnings into our fall wall set, which is the end of September for next year. We have also looked at our seasonal launches as far as what is more productive versus last year in some of the things that we have tested. The other thing about the assortment optimization test, it has informed our segmentation efforts as we look forward to our specific - how we segment our stores by brand and by customer. It has been an extreme learning for us in that regard.

Paul (Credit Suisse): What was the impact from the DC issue last year?

Martyn Redgrave: It is difficult to estimate the exact impact on demand and sales because it is hard to say what the customer might have done if we had not the issues that we had. But we have said that we estimate that the total of all of the extra costs of running the center and the disruption to the business was in the range of approximately $80 million in operating income impact in the fall of 2007.

Paul (Credit Suisse): How about between the third and fourth quarter?

Martyn Redgrave: We do not have that broken out in any specific way.

Paul (Credit Suisse): How do you view the maturity of the Direct business?

Sharen Turney: The international business today is about 10%, heavily in Canada and then throughout the world. Although the Direct business is $1.5 billion, it is the fastest growing channel. We will continue to see growth out of that channel. What you are going to see is within the catalog business. We will not mail as many catalogs or pages. It will still be a heavily integrated web-based business. The community piece is continuing to build and how do you play within the community, which is a new marketing target for us. I think also how do you think about step size, like VS - you know we have VSPink.com and how we are linking that back to the mother ship, and there is some exciting things there. We started to test mobile commerce, and it is just beginning touching in the water so, it may not be a great experience but you get on your mobile phone and you can place orders and through Catalog Quick Orders. It is amazing how many people have already responded to that test. You are starting to see a lot of that in Japan. As our technology and zones continue to upgrade in the United States, I still think that there is some interesting opportunities there.

Martyn Redgrave: We are anticipating disruption costs. We are incurring disruption costs in the spring of 2008. We are estimating those to be in the range of $25 to $35 million in the spring of 2008, which would not have been in the spring of 2007 because we did not open the center until the fall. For the fall of 2008, we are expecting the center to be stabilized. We are continuing to incur higher costs from a productivity perspective, so we are estimating a $10 to $15 million range of what we call out of the ordinary costs.

Lauren Levitan (Cowen and Company): Could you give an update on operating margin targets for the brands, both in the near term with some of the headwinds you are facing in terms of traffic as well as some of the specific brand initiatives, and then longer term?

Amie Preston: We do not provide guidance down to the brand or segment detail.

Stuart Burgdoerfer: For Limited Brands, Inc., we would expect over the next two to three years to improve operating margins significantly. We have run at about a 10% to 11% operating margin historically with the apparel business in those figures. We as a management team believe that there are several hundred basis points of upside to that Limited Brands, Inc. operating margin rate over the next several years. That is how we are working it, because otherwise you have got to get into discussions of how we are allocating corporate overhead and lots of different things. What we are focused on is driving operating margin improvement for Limited Brands, Inc. We think there are several hundred basis points of opportunity over the next two to three years.

Jennifer Black (Jennifer Black & Associates): Could you talk about your training program at Victoria's Secret for bra fitting?

Sharen Turney: We are in the process of changing how we are training our specialists. Years ago we did have a training program. We got off of that. We are reintroducing, under the headlines of bra sorting, a robust training program, going to the University of Victoria's Secret. They will only be bra specialists, and it will not just be the one person in the fitting room that is trained. The entire store will be trained. There will be different levels of graduation. This is something new, and we have piloted this program. It is now fully implemented in two stores today, which is Houston Galleria and Tuttle. We have great training materials. We also have materials for the customer.

Todd Slater (Lazard Capital Markets): Do you see opportunities for all the businesses, VS and even the sub-brands, Pink, Beauty, and also BBW in international?