Key questions and answers from the fourth quarter fiscal 2008 earnings call as presented by Limited Brands, Inc on February 26, 2009

Dana Telsey (Telsey Advisory Group): On the real estate side of the business, what are you seeing for both businesses in terms of renegotiation of existing leases and potential store closing that would be evaluated too?

Martyn Redgrave: We are such a strong presence in the mall and we are a very successful part of that presence we are approaching our conversations with landlords in a very respectful and confidential way.

We are leading with our emphasis on strengthening our relationship with the landlords rather than simply asking them for concessions.

When we have lease renewals or repositioning within the mall going on we are looking for the right kind of market rate on those lease renewals but we are not seeking to do more than that at this stage of our discussions with our landlords.

Dana Telsey (Telsey Advisory Group): How are you planning price points and the impact on gross margin?

Dian Neil: At Bath and Body Works we have done a lot of testing throughout the fourth quarter and continue to test a lot of different buy ins to most of our collections.

Our AUR's are basically flat to last year but our overall ABS or average basket is actually below last year. So we started selling fewer units but the AUR's are pretty well flat.

Sharen Turney: At Victoria's Secret as we see the deterioration of traffic within the malls we are positioned to take action with promotion, if necessary.

We have a very conservative plan within our gross margin strategy. We are not looking to over promote Victoria's Secret but actually pulse throughout very specific targeted promotions.

So it is all strategized. It is within the budget. We will only pull the trigger if necessary.

Brian Tunick (J.P. Morgan): Why do you think February, is trending significantly better than your original expectations?

Dian Neil: At Bath and Body Works our Signature collection is a very large part of our business and it is actually selling better than expected at the beginning of the month as well.

At the home fragrance business is actually trending better than expected but we are pleased with the initial results.

Sharen Turney: At Victoria's Secret we came in with the Valentines Day where we did a Godiva gift with purchase which exceeded our expectations. We have more newness in beauty.

We already have two launches in this year going into the spring season. The pipeline is full in beauty which we are getting good results from that.

Our Pink Collegiate line as well as Pink Business has been strong and continues to be as well in Victoria's Secrets the bra business remains healthy.

Brian Tunick (J.P. Morgan): On the free cash flow guidance other than inventories what are the other buckets of working capital improvements?

Stuart Burgdoerfer: On 2009 free cash flow assumptions we did not make any aggressive assumptions with respect to additional improvements on payables or things on the liability side of the balance sheet.

There will be some modest decline in receivables related to the Mast business to third party customers and obviously some improvement or source of cash from inventory. The key thing is really the reduction in CapEx year-over-year versus 2008.