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<SEC-DOCUMENT>/in/edgar/work/20000825/0000104169-00-000009/0000104169-00-000009.txt : 20000922
<SEC-HEADER>0000104169-00-000009.hdr.sgml : 20000922
ACCESSION NUMBER:		0000104169-00-000009
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20000731
FILED AS OF DATE:		20000825

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			WAL MART STORES INC
		CENTRAL INDEX KEY:			0000104169
		STANDARD INDUSTRIAL CLASSIFICATION:	 [5331
]		IRS NUMBER:				710415188
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0131
</COMPANY-DATA>

		FILING VALUES:
			FORM TYPE:		10-Q
			SEC ACT:		
			SEC FILE NUMBER:	001-06991
			FILM NUMBER:		709725
</FILING-VALUES>

			BUSINESS ADDRESS:	
				STREET 1:		702 SOUTHWEST 8TH ST
				CITY:			BENTONVILLE
				STATE:			AR
				ZIP:			72716
				BUSINESS PHONE:		5012734000
</BUSINESS-ADDRESS>

				MAIL ADDRESS:	
					STREET 1:		702 SOUTHWEST 8TH STREET
					CITY:			BENTONVILLE
					STATE:			AR
					ZIP:			72716
</MAIL-ADDRESS>
</FILER>
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>0001.htm
<TEXT>

<HTML>

<head>
</head>

<body LINK="#7f7f00">
<font FACE="Courier New"><b>

<p ALIGN="CENTER">UNITED STATES<br>
SECURITIES AND EXCHANGE COMMISSION<br>
Washington, D.C. 20549</p>

<p ALIGN="CENTER">FORM 10-Q</p>

<p ALIGN="CENTER">(Mark One)</p>
</b>

<p ALIGN="JUSTIFY">[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the quarterly period ended <u>July 31, 2000</u>.</p>

<p ALIGN="CENTER">or</p>

<p ALIGN="JUSTIFY">[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the transition period from ______to______.</p>

<p ALIGN="JUSTIFY">Commission file number <u>1-6991</p>
</u>

<p ALIGN="center"><u>WAL-MART STORES, INC.<br>
</u>(Exact name of registrant as specified in its charter)<u></p>

<p></u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Delaware</u>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>71-0415188</u><br>
(State or other jurisdiction of
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(I.R.S. Employer<br>
incorporation or organization)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Identification No.)</p>

<p>&nbsp;&nbsp; 702 S.W. Eighth Street<br>
&nbsp;&nbsp;&nbsp; <u>Bentonville, Arkansas</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>72716</u><br>
(Address of principal executive offices)&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Zip Code)</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>(501) 273-4000</u>&nbsp;&nbsp; <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Registrant&#146;s telephone
number, including area code)</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Not applicable</u><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Former name, former address and
former fiscal year,<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
if changed since last report)</p>

<p ALIGN="JUSTIFY">Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or such shorter periods that the registrant was required to file
such reports), and (2) has been subject to such filing requirements for the past 90 days.<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Yes __<u>X</u>__ No _____</p>

<p ALIGN="CENTER">Applicable Only to Issuers Involved in Bankruptcy<br>
Proceedings During the Preceding Five Years</p>

<p ALIGN="JUSTIFY">Indicate by check mark whether the registrant has filed all documents
and reports required to be filed by Sections 12, 13, or 15(d) of the Securities Exchange
Act of 1934 subsequent to the distribution of securities under a plan confirmed by the
court.<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Yes _____ No _____</p>

<p ALIGN="CENTER">Applicable Only to Corporate Issuers</p>

<p ALIGN="JUSTIFY">Indicate the number of shares outstanding of each of the issuer&#146;s
classes of common stock, as of the latest practical date.</p>

<p ALIGN="JUSTIFY">Common Stock, $.10 Par Value &#150; 4,466,335,662 shares as of July 31,
2000.</p>

<p ALIGN="center"><strong>Page 1 of 16 (Form 10-Q)</strong></p>
<b>

<p ALIGN="CENTER"><br>
PART I. FINANCIAL INFORMATION</p>

<p ALIGN="JUSTIFY">Item 1. Financial Statements</p>
</b></font><div align="center"><center>

<table CELLSPACING="0" BORDER="0" CELLPADDING="0">
  <tr>
    <td VALIGN="TOP" COLSPAN="3" width="679"><font FACE="Courier New" SIZE="2"><b><p
    ALIGN="CENTER">WAL-MART STORES, INC. AND SUBSIDIARIES<br>
    CONDENSED CONSOLIDATED BALANCE SHEETS<br>
    (Amounts in millions)<br>
    </b></font></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="bottom"><font FACE="Courier New" SIZE="2"><u><b><p ALIGN="JUSTIFY">&nbsp;</p>
    <p ALIGN="JUSTIFY">ASSETS</b></u></font></td>
    <td WIDTH="131" VALIGN="bottom"><font FACE="Courier New" SIZE="2"><b><p ALIGN="CENTER">July
    31,<br>
    <u>2000</u><br>
    (Unaudited)</b></font></td>
    <td WIDTH="131" VALIGN="bottom"><font FACE="Courier New" SIZE="2"><b><p ALIGN="CENTER">January
    31,<br>
    <u>2000</u><br>
    (*Note)</b></font></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"></td>
    <td WIDTH="131" VALIGN="TOP"></td>
    <td WIDTH="131" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="JUSTIFY">Cash and
    cash equivalents</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">$&nbsp;
    1,310</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">$
    &nbsp;1,856</font></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="JUSTIFY">Receivables</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">1,249</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">1,341</font></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="JUSTIFY">Inventories</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">21,093</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">19,793</font></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="JUSTIFY">Prepaid
    expenses and other</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><u><p ALIGN="RIGHT">&nbsp;&nbsp;
    1,593</u></font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><u><p ALIGN="RIGHT">&nbsp;&nbsp;
    1,366</u></font></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"><blockquote>
      <font FACE="Courier New" SIZE="2"><p ALIGN="JUSTIFY">Total current assets</font></p>
    </blockquote>
    </td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">25,245</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">24,356</font></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"></td>
    <td WIDTH="131" VALIGN="TOP"></td>
    <td WIDTH="131" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="JUSTIFY">Property,
    plant and equipment, at cost</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">43,937</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">41,063</font></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="JUSTIFY">Less
    accumulated depreciation</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><u><p ALIGN="RIGHT">&nbsp;&nbsp;
    9,048</u></font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><u><p ALIGN="RIGHT">&nbsp;&nbsp;
    8,224</u></font></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"><blockquote>
      <font FACE="Courier New" SIZE="2"><p ALIGN="JUSTIFY">Net property, plant and equipment</font></p>
    </blockquote>
    </td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">34,889</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">32,839</font></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"></td>
    <td WIDTH="131" VALIGN="TOP"></td>
    <td WIDTH="131" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="JUSTIFY">Property
    under capital leases</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">4,342</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">4,285</font></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="JUSTIFY">Less
    accumulated amortization</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><u><p ALIGN="RIGHT">&nbsp;&nbsp;
    1,227</u></font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><u><p ALIGN="RIGHT">&nbsp;&nbsp;
    1,155</u></font></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"><blockquote>
      <font FACE="Courier New" SIZE="2"><p ALIGN="JUSTIFY">Net property under capital leases</font></p>
    </blockquote>
    </td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">3,115</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">3,130</font></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"></td>
    <td WIDTH="131" VALIGN="TOP"></td>
    <td WIDTH="131" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"><font FACE="Courier New" SIZE="2">Net goodwill and other
    acquired intangible assets</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">9,265</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">9,392</font></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="JUSTIFY">Other
    assets and deferred charges</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><u><p ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;
    893</u></font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><u><p ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;
    632</u></font></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"></td>
    <td WIDTH="131" VALIGN="TOP"></td>
    <td WIDTH="131" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"><blockquote>
      <font FACE="Courier New" SIZE="2"><p ALIGN="JUSTIFY">Total assets</font></p>
    </blockquote>
    </td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><u><p ALIGN="RIGHT"><strong>$
    73,407</strong></u></font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><u><p ALIGN="RIGHT"><strong>$
    70,349</strong></u></font></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"></td>
    <td WIDTH="131" VALIGN="TOP"></td>
    <td WIDTH="131" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><u><b><p ALIGN="JUSTIFY">LIABILITIES
    AND SHAREHOLDERS' EQUITY</b></u></font></td>
    <td WIDTH="131" VALIGN="TOP"></td>
    <td WIDTH="131" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"></td>
    <td WIDTH="131" VALIGN="TOP"></td>
    <td WIDTH="131" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="JUSTIFY">Commercial
    paper</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">$&nbsp;
    5,940</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">$ &nbsp;
    3,323</font></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="JUSTIFY">Accounts
    payable</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">12,634</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">13,105</font></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="JUSTIFY">Accrued
    liabilities</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">5,806</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">6,161</font></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="JUSTIFY">Other
    current liabilities</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><u><p ALIGN="RIGHT">&nbsp;&nbsp;
    2,356</u></font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><u><p ALIGN="RIGHT">&nbsp;&nbsp;
    3,214</u></font></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"><blockquote>
      <font FACE="Courier New" SIZE="2"><p ALIGN="JUSTIFY">Total current liabilities</font></p>
    </blockquote>
    </td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">26,736</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">25,803</font></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"></td>
    <td WIDTH="131" VALIGN="TOP"></td>
    <td WIDTH="131" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="JUSTIFY">Long-term
    debt</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">13,716</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">13,672</font></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="JUSTIFY">Long-term
    obligations under capital leases</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">2,968</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">3,002</font></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="JUSTIFY">Deferred
    income taxes and other</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">811</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">759</font></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="JUSTIFY">Minority
    interest</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">1,080</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">1,279</font></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"></td>
    <td WIDTH="131" VALIGN="TOP"></td>
    <td WIDTH="131" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="JUSTIFY">Common
    stock and capital in excess of par value</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">1,717</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">1,160</font></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="JUSTIFY">Retained
    earnings</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">27,333</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">25,129</font></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="JUSTIFY">Other
    accumulated comprehensive income</font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><u><p ALIGN="RIGHT">&nbsp;&nbsp;
    (954)</u></font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><u><p ALIGN="RIGHT">&nbsp;&nbsp;
    (455)</u></font></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"><blockquote>
      <font FACE="Courier New" SIZE="2"><p ALIGN="JUSTIFY">Total shareholders' equity</font></p>
    </blockquote>
    </td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><u><p ALIGN="RIGHT">&nbsp;
    28,096</u></font></td>
    <td WIDTH="131" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><u><p ALIGN="RIGHT">&nbsp;
    25,834</u></font></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"></td>
    <td WIDTH="131" VALIGN="TOP"></td>
    <td WIDTH="131" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td WIDTH="417" VALIGN="TOP"><blockquote>
      <font FACE="Courier New" SIZE="2"><p ALIGN="JUSTIFY">Total liabilities and shareholders'<br>
      &nbsp; Equity</p>
      </font>
    </blockquote>
    </td>
    <td WIDTH="131" VALIGN="bottom"><font FACE="Courier New" SIZE="2"><u><p ALIGN="RIGHT"><strong>$
    73,407</strong></u></font></td>
    <td WIDTH="131" VALIGN="bottom"><font FACE="Courier New" SIZE="2"><u><p ALIGN="RIGHT"><strong>$
    70,349</strong></u></font></td>
  </tr>
</TABLE>
</center></div><font FACE="Courier New">

<p>See accompanying notes to condensed consolidated financial statements.</p>

<p>* Note: The balance sheet at January 31, 2000, has been derived<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; from the audited financial statements at that
date, and<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; condensed.</p>

<p align="center"><strong>Page 2 of 16 (Form 10-Q)</strong></p>
</font><div align="center"><center>

<table CELLSPACING="0" BORDER="0" CELLPADDING="0" height="1080">
  <tr>
    <td VALIGN="TOP" COLSPAN="5" height="85" width="675"><font FACE="Courier New" SIZE="2"><b><p
    ALIGN="CENTER">WAL-MART STORES, INC. AND SUBSIDIARIES<br>
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME<br>
    (Unaudited)<br>
    (Amounts in millions except per share data)<br>
    </b></font></td>
  </tr>
  <tr>
    <td WIDTH="347" VALIGN="TOP" height="50"></td>
    <td WIDTH="169" VALIGN="TOP" COLSPAN="2" height="50"><font FACE="Courier New" SIZE="2"><b><p
    ALIGN="center">Three Months Ended<br>
    <u>July 31,<br>
    2000</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>1999</u></b></font></td>
    <td WIDTH="159" VALIGN="TOP" COLSPAN="2" height="50"><font FACE="Courier New" SIZE="2"><b><p
    ALIGN="CENTER">Six Months Ended<br>
    <u>July 31,<br>
    2000</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>1999</u></b></font></td>
  </tr>
  <tr>
    <td VALIGN="top" width="347" height="21"><font FACE="Courier New" SIZE="2">Revenues:</font></td>
    <td WIDTH="92" VALIGN="TOP" height="21"></td>
    <td WIDTH="77" VALIGN="TOP" height="21"></td>
    <td WIDTH="80" VALIGN="TOP" height="21"></td>
    <td WIDTH="79" VALIGN="TOP" height="21"></td>
  </tr>
  <tr>
    <td WIDTH="347" VALIGN="TOP" height="21"><font FACE="Courier New" SIZE="2" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;
    Net Sales</font> </td>
    <td WIDTH="92" VALIGN="TOP" height="21"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">$
    46,112</font></td>
    <td WIDTH="77" VALIGN="TOP" height="21"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">$
    38,470</font></td>
    <td WIDTH="80" VALIGN="TOP" height="21"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">$
    89,097</font></td>
    <td WIDTH="79" VALIGN="TOP" height="21"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">$
    73,187</font></td>
  </tr>
  <tr>
    <td WIDTH="347" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><p align="left">&nbsp;&nbsp;&nbsp;&nbsp;
    Other income - net</font></td>
    <td WIDTH="92" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp; 476</u></font></td>
    <td WIDTH="77" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp; 443</u></font></td>
    <td WIDTH="80" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp; 938</u></font></td>
    <td WIDTH="79" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp; 855</u></font></td>
  </tr>
  <tr>
    <td WIDTH="347" VALIGN="TOP" height="21"></td>
    <td WIDTH="92" VALIGN="TOP" height="21"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">46,588</font></td>
    <td WIDTH="77" VALIGN="TOP" height="21"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">38,913</font></td>
    <td WIDTH="80" VALIGN="TOP" height="21"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">90,035</font></td>
    <td WIDTH="79" VALIGN="TOP" height="21"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">74,042</font></td>
  </tr>
  <tr>
    <td WIDTH="347" VALIGN="TOP" height="21"><font FACE="Courier New" SIZE="2">Costs and
    expenses:</font></td>
    <td WIDTH="92" VALIGN="TOP" height="21"></td>
    <td WIDTH="77" VALIGN="TOP" height="21"></td>
    <td WIDTH="80" VALIGN="TOP" height="21"></td>
    <td WIDTH="79" VALIGN="TOP" height="21"></td>
  </tr>
  <tr>
    <td WIDTH="347" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2">Cost of sales</font></td>
    <td WIDTH="92" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">36,044</font></td>
    <td WIDTH="77" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">30,123</font></td>
    <td WIDTH="80" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">69,709</font></td>
    <td WIDTH="79" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">57,364</font></td>
  </tr>
  <tr>
    <td WIDTH="347" VALIGN="TOP" height="34"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    Operating, selling and general <br>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and administrative expenses</font></td>
    <td WIDTH="92" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">7,625</font></td>
    <td WIDTH="77" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">6,573</font></td>
    <td WIDTH="80" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">14,943</font></td>
    <td WIDTH="79" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">12,461</font></td>
  </tr>
  <tr>
    <td WIDTH="347" VALIGN="TOP" height="21"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    Interest costs:</font></td>
    <td WIDTH="92" VALIGN="TOP" height="21"></td>
    <td WIDTH="77" VALIGN="TOP" height="21"></td>
    <td WIDTH="80" VALIGN="TOP" height="21"></td>
    <td WIDTH="79" VALIGN="TOP" height="21"></td>
  </tr>
  <tr>
    <td WIDTH="347" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    Debt</font></td>
    <td WIDTH="92" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">273</font></td>
    <td WIDTH="77" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">125</font></td>
    <td WIDTH="80" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">536</font></td>
    <td WIDTH="79" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">252</font></td>
  </tr>
  <tr>
    <td WIDTH="347" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    Capital leases</font></td>
    <td WIDTH="92" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 71</u></font></td>
    <td WIDTH="77" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 66</u></font></td>
    <td WIDTH="80" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp; 138</u></font></td>
    <td WIDTH="79" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp; 130</u></font></td>
  </tr>
  <tr>
    <td WIDTH="347" VALIGN="TOP" height="21"></td>
    <td WIDTH="92" VALIGN="TOP" height="21"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">&nbsp; 44,013</u></font></td>
    <td WIDTH="77" VALIGN="TOP" height="21"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">&nbsp; 36,887</u></font></td>
    <td WIDTH="80" VALIGN="TOP" height="21"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">&nbsp; 85,326</u></font></td>
    <td WIDTH="79" VALIGN="TOP" height="21"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">&nbsp; 70,207</u></font></td>
  </tr>
  <tr>
    <td VALIGN="bottom" width="347" height="68"><font FACE="Courier New" SIZE="2">Income
    before income taxes, minority <br>
    &nbsp; interest, equity in unconsolidated<br>
    &nbsp; subsidiaries and cumulative effect <br>
    &nbsp; of accounting change</font></td>
    <td VALIGN="bottom" width="92" height="68"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">2,575</font></td>
    <td VALIGN="bottom" width="77" height="68"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">&nbsp;</p>
    <p ALIGN="RIGHT">&nbsp;</p>
    <p ALIGN="RIGHT">2,026</font></td>
    <td VALIGN="bottom" width="80" height="68"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">&nbsp;</p>
    <p ALIGN="RIGHT">&nbsp;</p>
    <p ALIGN="RIGHT">4,709</font></td>
    <td VALIGN="bottom" width="79" height="68"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">3,835</font></td>
  </tr>
  <tr>
    <td WIDTH="347" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2">Provision for
    income taxes</font></td>
    <td WIDTH="92" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp; 948</u></font></td>
    <td WIDTH="77" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp; 741</u></font></td>
    <td WIDTH="80" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">&nbsp;&nbsp; 1,733</u></font></td>
    <td WIDTH="79" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">&nbsp;&nbsp; 1,403</u></font></td>
  </tr>
  <tr>
    <td WIDTH="347" VALIGN="TOP" height="21"></td>
    <td WIDTH="92" VALIGN="TOP" height="21"></td>
    <td WIDTH="77" VALIGN="TOP" height="21"></td>
    <td WIDTH="80" VALIGN="TOP" height="21"></td>
    <td WIDTH="79" VALIGN="TOP" height="21"></td>
  </tr>
  <tr>
    <td VALIGN="bottom" width="347" height="50"><font FACE="Courier New" SIZE="2">Income
    before minority interest, equity<br>
    &nbsp; in unconsolidated subsidiaries and<br>
    &nbsp; cumulative effect of accounting change</font></td>
    <td VALIGN="bottom" width="92" height="50"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">1,627</font></td>
    <td VALIGN="bottom" width="77" height="50"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">1,285</font></td>
    <td VALIGN="bottom" width="80" height="50"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">2,976</font></td>
    <td VALIGN="bottom" width="79" height="50"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">2,432</font></td>
  </tr>
  <tr>
    <td WIDTH="347" VALIGN="TOP" height="21"></td>
    <td WIDTH="92" VALIGN="TOP" height="21"></td>
    <td WIDTH="77" VALIGN="TOP" height="21"></td>
    <td WIDTH="80" VALIGN="TOP" height="21"></td>
    <td WIDTH="79" VALIGN="TOP" height="21"></td>
  </tr>
  <tr>
    <td WIDTH="347" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2">Minority
    interest and equity in<br>
    &nbsp; unconsolidated subsidiaries</font></td>
    <td WIDTH="92" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">&nbsp;&nbsp;&nbsp; (31)</u></font></td>
    <td WIDTH="77" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">&nbsp;&nbsp;&nbsp; (34)</u></font></td>
    <td WIDTH="80" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">&nbsp;&nbsp;&nbsp; (54)</u></font></td>
    <td WIDTH="79" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">&nbsp;&nbsp;&nbsp; (67)</u></font></td>
  </tr>
  <tr>
    <td WIDTH="347" VALIGN="TOP" height="21"></td>
    <td WIDTH="92" VALIGN="TOP" height="21"></td>
    <td WIDTH="77" VALIGN="TOP" height="21"></td>
    <td WIDTH="80" VALIGN="TOP" height="21"></td>
    <td WIDTH="79" VALIGN="TOP" height="21"></td>
  </tr>
  <tr>
    <td WIDTH="347" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2">Income
    before cumulative effect of <br>
    &nbsp; accounting change</font></td>
    <td WIDTH="92" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">1,596</font></td>
    <td WIDTH="77" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">1,251</font></td>
    <td WIDTH="80" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">2,922</font></td>
    <td WIDTH="79" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">2,365</font></td>
  </tr>
  <tr>
    <td WIDTH="347" VALIGN="TOP" height="21"></td>
    <td WIDTH="92" VALIGN="TOP" height="21"></td>
    <td WIDTH="77" VALIGN="TOP" height="21"></td>
    <td WIDTH="80" VALIGN="TOP" height="21"></td>
    <td WIDTH="79" VALIGN="TOP" height="21"></td>
  </tr>
  <tr>
    <td WIDTH="347" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2">Cumulative
    effect of accounting change,<br>
    &nbsp; net of tax benefit of $119</font></td>
    <td WIDTH="92" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></font></td>
    <td WIDTH="77" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></font></td>
    <td WIDTH="80" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></font></td>
    <td WIDTH="79" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">&nbsp;&nbsp; (198)</u></font></td>
  </tr>
  <tr>
    <td WIDTH="347" VALIGN="TOP" height="21"></td>
    <td WIDTH="92" VALIGN="TOP" height="21"></td>
    <td WIDTH="77" VALIGN="TOP" height="21"></td>
    <td WIDTH="80" VALIGN="TOP" height="21"></td>
    <td WIDTH="79" VALIGN="TOP" height="21"></td>
  </tr>
  <tr>
    <td WIDTH="347" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2">Net income</font></td>
    <td WIDTH="92" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT"><strong>$&nbsp; 1,596</strong></u></font></td>
    <td WIDTH="77" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT"><strong>$&nbsp; 1,251</strong></u></font></td>
    <td WIDTH="80" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT"><strong>$&nbsp; 2,922</strong></u></font></td>
    <td WIDTH="79" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT"><strong>$&nbsp; 2,167</strong></u></font></td>
  </tr>
  <tr>
    <td WIDTH="347" VALIGN="TOP" height="21"></td>
    <td WIDTH="92" VALIGN="TOP" height="21"></td>
    <td WIDTH="77" VALIGN="TOP" height="21"></td>
    <td WIDTH="80" VALIGN="TOP" height="21"></td>
    <td WIDTH="79" VALIGN="TOP" height="21"></td>
  </tr>
  <tr>
    <td WIDTH="347" VALIGN="TOP" height="21"><font FACE="Courier New" SIZE="2">Net income per
    common share:</font></td>
    <td WIDTH="92" VALIGN="TOP" height="21"></td>
    <td WIDTH="77" VALIGN="TOP" height="21"></td>
    <td WIDTH="80" VALIGN="TOP" height="21"></td>
    <td WIDTH="79" VALIGN="TOP" height="21"></td>
  </tr>
  <tr>
    <td WIDTH="347" VALIGN="TOP" height="21"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    Basic net income per common share </font></td>
    <td WIDTH="92" VALIGN="TOP" height="21"></td>
    <td WIDTH="77" VALIGN="TOP" height="21"></td>
    <td WIDTH="80" VALIGN="TOP" height="21"></td>
    <td WIDTH="79" VALIGN="TOP" height="21"></td>
  </tr>
  <tr>
    <td WIDTH="347" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Income before cumulative effect<br>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of accounting change</font></td>
    <td WIDTH="92" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">$&nbsp;&nbsp; 0.36</font></td>
    <td WIDTH="77" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">$&nbsp;&nbsp; 0.28</font></td>
    <td WIDTH="80" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">$ &nbsp; 0.66</font></td>
    <td WIDTH="79" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">$ &nbsp; 0.53</font></td>
  </tr>
  <tr>
    <td WIDTH="347" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Cumulative effect of accounting<br>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; change, net of tax</font></td>
    <td WIDTH="92" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">$&nbsp; &nbsp;&nbsp;&nbsp; -</u></font></td>
    <td WIDTH="77" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">$&nbsp; &nbsp;&nbsp;&nbsp; -</u></font></td>
    <td WIDTH="80" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">$ &nbsp;&nbsp;&nbsp;&nbsp; -</u></font></td>
    <td WIDTH="79" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">$&nbsp;(0.04)</u></font></td>
  </tr>
  <tr>
    <td WIDTH="347" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    Net income per common share</font></td>
    <td WIDTH="92" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT"><strong>$&nbsp;&nbsp; 0.36</strong></u></font></td>
    <td WIDTH="77" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT"><strong>$&nbsp;&nbsp; 0.28</strong></u></font></td>
    <td WIDTH="80" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT"><strong>$&nbsp;&nbsp; 0.66</strong></u></font></td>
    <td WIDTH="79" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT"><strong>$&nbsp;&nbsp; 0.49</strong></u></font></td>
  </tr>
  <tr>
    <td WIDTH="347" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    Average number of common shares</font></td>
    <td WIDTH="92" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">4,465</font></td>
    <td WIDTH="77" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">4,450</font></td>
    <td WIDTH="80" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">4,460</font></td>
    <td WIDTH="79" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">4,451</font></td>
  </tr>
  <tr>
    <td WIDTH="347" VALIGN="TOP" height="21"></td>
    <td WIDTH="92" VALIGN="TOP" height="21"></td>
    <td WIDTH="77" VALIGN="TOP" height="21"></td>
    <td WIDTH="80" VALIGN="TOP" height="21"></td>
    <td WIDTH="79" VALIGN="TOP" height="21"></td>
  </tr>
  <tr>
    <td WIDTH="347" VALIGN="TOP" height="21"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    Dilutive net income per common share</font></td>
    <td WIDTH="92" VALIGN="TOP" height="21"></td>
    <td WIDTH="77" VALIGN="TOP" height="21"></td>
    <td WIDTH="80" VALIGN="TOP" height="21"></td>
    <td WIDTH="79" VALIGN="TOP" height="21"></td>
  </tr>
  <tr>
    <td WIDTH="347" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    &nbsp; Income before cumulative effect<br>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of accounting change</font></td>
    <td WIDTH="92" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">$&nbsp;&nbsp; 0.36</font></td>
    <td WIDTH="77" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">$&nbsp;&nbsp; 0.28</font></td>
    <td WIDTH="80" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">$&nbsp;&nbsp; 0.65</font></td>
    <td WIDTH="79" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">$ &nbsp; 0.53</font></td>
  </tr>
  <tr>
    <td WIDTH="347" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2">&nbsp;
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cumulative effect of accounting<br>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; change, net of tax</font></td>
    <td WIDTH="92" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">$&nbsp;&nbsp; &nbsp;&nbsp; -</u></font></td>
    <td WIDTH="77" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">$&nbsp; &nbsp;&nbsp;&nbsp; -</u></font></td>
    <td WIDTH="80" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp; &nbsp; -</u></font></td>
    <td WIDTH="79" VALIGN="bottom" height="34"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">$ (0.04)</u></font></td>
  </tr>
  <tr>
    <td WIDTH="347" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    Net income per common share</font></td>
    <td WIDTH="92" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT"><strong>$&nbsp;&nbsp; 0.36</strong></u></font></td>
    <td WIDTH="77" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT"><strong>$&nbsp;&nbsp; 0.28</strong></u></font></td>
    <td WIDTH="80" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT"><strong>$&nbsp;&nbsp; 0.65</strong></u></font></td>
    <td WIDTH="79" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT"><strong>$&nbsp;&nbsp; 0.48</strong></u></font></td>
  </tr>
  <tr>
    <td WIDTH="347" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    Average number of common shares</font></td>
    <td WIDTH="92" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">4,487</font></td>
    <td WIDTH="77" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">4,473</font></td>
    <td WIDTH="80" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">4,482</font></td>
    <td WIDTH="79" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">4,475</font></td>
  </tr>
  <tr>
    <td WIDTH="347" VALIGN="TOP" height="21"></td>
    <td WIDTH="92" VALIGN="TOP" height="21"></td>
    <td WIDTH="77" VALIGN="TOP" height="21"></td>
    <td WIDTH="80" VALIGN="TOP" height="21"></td>
    <td WIDTH="79" VALIGN="TOP" height="21"></td>
  </tr>
  <tr>
    <td WIDTH="347" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2">Dividends per
    share</font></td>
    <td WIDTH="92" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">$
    0.0600</font></td>
    <td WIDTH="77" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">$
    0.0500</font></td>
    <td WIDTH="80" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">$
    0.1200</font></td>
    <td WIDTH="79" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">$
    0.1000</font></td>
  </tr>
</TABLE>
</center></div><font FACE="Courier New">

<p>See accompanying notes condensed consolidated financial statements.</p>

<p ALIGN="CENTER"><strong>Page 3 of 16 (Form 10-Q)</strong></p>

<p ALIGN="CENTER">&nbsp;</p>
</font><div align="center"><center>

<table CELLSPACING="0" BORDER="0" CELLPADDING="0" height="891">
  <tr>
    <td VALIGN="TOP" COLSPAN="3" width="668" height="66"><font FACE="Courier New" SIZE="2"><b><p
    ALIGN="CENTER">WAL-MART STORES, INC. AND SUBSIDIARIES<br>
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS<br>
    (Unaudited)<br>
    (Amounts in millions)</b></font></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="50"></td>
    <td WIDTH="181" VALIGN="TOP" COLSPAN="2" height="50"><font FACE="Courier New" SIZE="2"><b><p
    ALIGN="CENTER">Six Months Ended<br>
    <u>July 31,<br>
    2000</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>1999</u></b></font></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="21"><font FACE="Courier New" SIZE="2">Cash flows from
    operating activities:</font></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="21"></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="21"></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    Net income</font></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;
    $ 2,922</font></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="18"><p align="right"><font
    FACE="Courier New" SIZE="2">&nbsp;&nbsp; $ 2,167</font></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="21"></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="21"></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="21"></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="34"><font FACE="Courier New" SIZE="2">Adjustments to
    reconcile net income to net cash provided by <br>
    &nbsp; operating activities:</font></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="34"></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="34"></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    Depreciation and amortization</font></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    1,331</font></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    1,056</font></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    Cumulative effect of accounting change (net of tax)</font></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    -</font></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    198</font></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    Increase in inventories</font></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">(1,413)</font></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">(1,126)</font></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    Increase (decrease) in accounts payable</font></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">(336)</font></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="18"><p align="right"><font
    FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;914</font></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    Other</font></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">&nbsp;&nbsp; (461)</u></font></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">&nbsp;&nbsp; (491)</u></font></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2">Net cash
    provided by operating activities</font></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    2,043</font></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;
    &nbsp;&nbsp;2,718</font></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="21"></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="21"></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="21"></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="21"><font FACE="Courier New" SIZE="2">Cash flows from
    investing activities:</font></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="21"></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="21"></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    Payments for property, plant &amp; equipment</font></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">(3,724)</font></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">(2,351)</font></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    Investment in international operations</font></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">(617)</font></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">(2,848)</font></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    Other investing activities</font></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="18"><p align="right"><font
    FACE="Courier New" SIZE="2">&nbsp; <u>&nbsp;&nbsp; &nbsp; 95</u></font></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="18"><p align="right"><font
    FACE="Courier New" SIZE="2">&nbsp; <u>&nbsp; &nbsp;&nbsp; 119 </u></font></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2">Net cash used
    in investing activities</font></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">(4,246)</font></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">(5,080)</font></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="21"></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="21"></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="21"></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="21"><font FACE="Courier New" SIZE="2">Cash flows from
    financing activities:</font></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="21"></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="21"></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    Increase in commercial paper</font></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="18"><p align="right"><font
    FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp; 2,127</font></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    2,991</font></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    Proceeds from issuance of long-term debt</font></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    1,017</font></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </font></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    Dividends paid</font></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">(534)</font></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">(445)</font></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    Payment of long-term debt</font></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">(1,294)</font></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">(321)</font></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    Purchase of Company stock</font></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">(193)</font></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">(101)</font></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    Proceeds from issuance of common stock</font></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;
    &nbsp;&nbsp;&nbsp;&nbsp;582</font></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    -</font></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    Other financing activities</font></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">&nbsp;&nbsp;&nbsp; (48)</u></font></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">&nbsp;&nbsp; (133)</u></font></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2">Net cash
    provided by financing activities</font></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">
    &nbsp; &nbsp;&nbsp;1,657</font></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;
    &nbsp; &nbsp;&nbsp;1,991</font></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="21"></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="21"></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="21"></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2">Net decrease in
    cash and cash equivalents</font></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">(546)</font></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2"><p
    ALIGN="RIGHT">(371)</font></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="21"></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="21"></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="21"></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2">Cash and cash
    equivalents at beginning of year</font></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="18"><p align="right"><font
    FACE="Courier New" SIZE="2">&nbsp; <u>&nbsp; 1,856 </u></font></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="18"><p align="right"><font
    FACE="Courier New" SIZE="2">&nbsp;&nbsp; <u>&nbsp; 1,879 </u></font></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="21"></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="21"></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="21"></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="21"><font FACE="Courier New" SIZE="2">Cash and cash
    equivalents at end of period</font></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="21"><font FACE="Courier New" SIZE="2"><strong>&nbsp;
    <u>$ 1,310 </u></strong></font></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="21"><font FACE="Courier New" SIZE="2"><strong>&nbsp;&nbsp;
    <u>$ 1,508 </u></strong></font></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="21"></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="21"></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="21"></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="21"><font FACE="Courier New" SIZE="2">Supplemental
    disclosure of cash flow information:</font></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="21"></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="21"></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="21"></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="21"></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="21"></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2">Income taxes
    paid</font></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;
    $ 1,717 </font></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="18"><p align="right"><font
    FACE="Courier New" SIZE="2">&nbsp;&nbsp; $ &nbsp; 607 </font></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2">Interest paid</font></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    703 </font></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    395 </font></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2">Obligation for
    ASDA shares tendered</font></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    &nbsp; - </font></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    6,406 </font></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2">Capital lease
    obligations incurred</font></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    195 </font></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    195 </font></td>
  </tr>
  <tr>
    <td WIDTH="487" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2">Property, plant
    and equipment acquired with debt</font></td>
    <td WIDTH="88" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    &nbsp; - </font></td>
    <td WIDTH="93" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    42 </font></td>
  </tr>
</TABLE>
</center></div><font FACE="Courier New">

<p>See accompanying notes to condensed consolidated financial statements.</p>
<b>

<p ALIGN="CENTER">Page 4 of 16 (Form 10 Q)</p>

<p ALIGN="CENTER">&nbsp;</p>

<p ALIGN="CENTER">WAL-MART STORES, INC. AND SUBSIDIARIES<br>
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</p>
</b><u>

<p ALIGN="JUSTIFY">NOTE 1. Basis of Presentation</p>
</u>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; The condensed consolidated balance sheet as of July
31, 2000, and the related condensed consolidated statements of income for the three and
six month periods ended July 31, 2000, and 1999, and the condensed consolidated statements
of cash flows for the six month periods ended July 31, 2000, and 1999, are unaudited. In
the opinion of management, all adjustments necessary for a fair presentation of the
financial statements have been included. The adjustments consisted only of normal
recurring items. Interim results are not necessarily indicative of results for a full
year. </p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; The financial statements and notes are presented in
accordance with the rules and regulations of the Securities and Exchange Commission and do
not contain certain information included in the Company&#146;s annual report. Therefore,
the interim statements should be read in conjunction with the Company's annual report for
the fiscal year ended January 31, 2000.</p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; Certain reclassifications have been made to prior
periods to conform to current presentations.</p>
<u>

<p ALIGN="JUSTIFY">NOTE 2. Net Income Per Share</p>
</u>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; Basic net income per share is based on the weighted
average outstanding common shares. Diluted net income per share is based on the weighted
average outstanding common shares reduced by the dilutive effect of stock options (22
million and 23 million shares for the quarters ended July 31, 2000 and 1999, and 22
million and 24 million for the six months periods ended July 31, 2000 and 1999,
respectively).</p>
<u>

<p ALIGN="JUSTIFY">NOTE 3. Inventories</p>
</u>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; The Company uses the retail last-in, first-out
(LIFO) method for the Wal-Mart Stores segment, cost LIFO for the Sam&#146;s Club segment,
and other cost methods, including the retail first-in, first-out (FIFO) and average cost
methods, for the International segment. Inventories are not in excess of market value.
Quarterly inventory determinations under LIFO are partially based on assumptions as to
inventory levels at the end of the fiscal year, sales for the year and the rate of
inflation for the year. If the FIFO method of accounting had been used by the Company,
inventories at July 31, 2000, would have been $398 million higher than reported, which is
an increase in the LIFO reserve of $20 million from January 31, 2000, and an increase of
$10 million from April 30, 2000. If the FIFO method had been used at July 31, 1999,
inventories would have been $433 million higher than reported, a decrease in the LIFO
reserve of $40 million from January 31, 1999, and a decrease of $20 million from April 30,
1999. </p>

<p ALIGN="center"><strong>Page 5 of 16 (Form 10-Q)</strong></p>
<u>

<p ALIGN="JUSTIFY">&nbsp;</p>

<p ALIGN="JUSTIFY">NOTE 4. Segments</p>
</u>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; The Company is principally engaged in the operation
of mass merchandising stores that serve customers primarily through the operation of three
segments. The Company identifies its segments based on management responsibility within
the United States and geographically for all international units. The Wal-Mart Stores
segment includes the Company&#146;s discount stores and Supercenters in the United States.
The Sam&#146;s Club segment includes the warehouse membership clubs in the United States.
The International segment includes all operations in Argentina, Brazil, Canada, China,
Germany, Korea, Mexico, Puerto Rico and the United Kingdom. The revenues in the
&quot;Other&quot; category result from sales to third parties by McLane Company, Inc., a
wholesale distributor.</p>

<p ALIGN="JUSTIFY">Net sales by operating segment were as follows (in millions):</p>
</font><div align="center"><center>

<table CELLSPACING="0" BORDER="0" CELLPADDING="0" width="464">
  <tr>
    <td WIDTH="126" VALIGN="TOP"></td>
    <td WIDTH="168" VALIGN="TOP" COLSPAN="2"><font FACE="Courier New" SIZE="2"><b><p
    ALIGN="CENTER">Three Months Ended<br>
    <u>July 31,<br>
    2000</u>&nbsp;&nbsp;&nbsp;&nbsp; <u>1999</u></b></font></td>
    <td WIDTH="170" VALIGN="TOP" COLSPAN="2"><font FACE="Courier New" SIZE="2"><b><p
    ALIGN="CENTER">Six Months Ended<br>
    <u>July 31,<br>
    2000</u>&nbsp;&nbsp;&nbsp;&nbsp; <u>1999</u></b></font></td>
  </tr>
  <tr>
    <td WIDTH="126" VALIGN="TOP"></td>
    <td WIDTH="84" VALIGN="TOP"></td>
    <td WIDTH="84" VALIGN="TOP"></td>
    <td WIDTH="85" VALIGN="TOP"></td>
    <td WIDTH="85" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td WIDTH="126" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="JUSTIFY">Wal-Mart
    Stores</font></td>
    <td WIDTH="84" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">$ 29,647</font></td>
    <td WIDTH="84" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">$ 26,614</font></td>
    <td WIDTH="85" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">$ 57,187</font></td>
    <td WIDTH="85" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">$ 50,540</font></td>
  </tr>
  <tr>
    <td WIDTH="126" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="JUSTIFY">Sam's
    Club</font></td>
    <td WIDTH="84" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">6,665</font></td>
    <td WIDTH="84" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">6,156</font></td>
    <td WIDTH="85" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">12,744</font></td>
    <td WIDTH="85" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">11,736</font></td>
  </tr>
  <tr>
    <td WIDTH="126" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="JUSTIFY">International</font></td>
    <td WIDTH="84" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">7,404</font></td>
    <td WIDTH="84" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">3,682</font></td>
    <td WIDTH="85" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">14,601</font></td>
    <td WIDTH="85" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="RIGHT">6,973</font></td>
  </tr>
  <tr>
    <td WIDTH="126" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="JUSTIFY">Other</font></td>
    <td WIDTH="84" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><u><p ALIGN="RIGHT">&nbsp;&nbsp;
    2,396</u></font></td>
    <td WIDTH="84" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><u><p ALIGN="RIGHT">&nbsp;&nbsp;
    2,018</u></font></td>
    <td WIDTH="85" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><u><p ALIGN="RIGHT">&nbsp;&nbsp;
    4,565</u></font></td>
    <td WIDTH="85" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><u><p ALIGN="RIGHT">&nbsp;&nbsp;
    3,938</u></font></td>
  </tr>
  <tr>
    <td WIDTH="126" VALIGN="TOP"></td>
    <td WIDTH="84" VALIGN="TOP"></td>
    <td WIDTH="84" VALIGN="TOP"></td>
    <td WIDTH="85" VALIGN="TOP"></td>
    <td WIDTH="85" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td WIDTH="126" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><p ALIGN="JUSTIFY">Total
    Net Sales</font></td>
    <td WIDTH="84" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><u><p ALIGN="RIGHT"><strong>$
    46,112</strong></u></font></td>
    <td WIDTH="84" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><u><p ALIGN="RIGHT"><strong>$
    38,470</strong></u></font></td>
    <td WIDTH="85" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><u><p ALIGN="RIGHT"><strong>$
    89,097</strong></u></font></td>
    <td WIDTH="85" VALIGN="TOP"><font FACE="Courier New" SIZE="2"><u><p ALIGN="RIGHT"><strong>$
    73,187</strong></u></font></td>
  </tr>
</TABLE>
</center></div><font FACE="Courier New">

<p ALIGN="JUSTIFY">&nbsp;</p>

<p ALIGN="JUSTIFY">Operating profit and reconciliation to income before income taxes,
minority interest, equity in unconsolidated subsidiaries and cumulative effect of
accounting change are as follows (in millions):</p>
</font><div align="center"><center>

<table CELLSPACING="0" BORDER="0" CELLPADDING="0">
  <tr>
    <td WIDTH="279" VALIGN="TOP" height="50"></td>
    <td WIDTH="212" VALIGN="TOP" COLSPAN="2" height="50"><font FACE="Courier New" SIZE="2"><b><p
    ALIGN="CENTER">Three Months Ended<br>
    <u>July 31,<br>
    2000</u>&nbsp;&nbsp;&nbsp;&nbsp; <u>1999</u></b></font></td>
    <td WIDTH="214" VALIGN="TOP" COLSPAN="2" height="50"><font FACE="Courier New" SIZE="2"><b><p
    ALIGN="CENTER">Six Months Ended<br>
    <u>July 31,<br>
    2000</u>&nbsp;&nbsp;&nbsp;&nbsp; <u>1999</u></b></font></td>
  </tr>
  <tr>
    <td WIDTH="279" VALIGN="TOP" height="21"></td>
    <td WIDTH="106" VALIGN="TOP" height="21"></td>
    <td WIDTH="106" VALIGN="TOP" height="21"></td>
    <td WIDTH="107" VALIGN="TOP" height="21"></td>
    <td WIDTH="107" VALIGN="TOP" height="21"></td>
  </tr>
  <tr>
    <td WIDTH="279" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><p
    ALIGN="JUSTIFY">Wal-Mart Stores</font></td>
    <td WIDTH="106" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;
    $ 2,560 </font></td>
    <td WIDTH="106" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    $ 2,187 </font></td>
    <td WIDTH="107" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    $ 4,720 </font></td>
    <td WIDTH="107" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    $ 3,984 </font></td>
  </tr>
  <tr>
    <td WIDTH="279" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><p
    ALIGN="JUSTIFY">Sam's Club</font></td>
    <td WIDTH="106" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    240 </font></td>
    <td WIDTH="106" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    214 </font></td>
    <td WIDTH="107" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    429 </font></td>
    <td WIDTH="107" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    385 </font></td>
  </tr>
  <tr>
    <td WIDTH="279" VALIGN="TOP" height="19"><font FACE="Courier New" SIZE="2"><p
    ALIGN="JUSTIFY">International</font></td>
    <td WIDTH="106" VALIGN="TOP" align="right" height="19"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    232 </font></td>
    <td WIDTH="106" VALIGN="TOP" align="right" height="19"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    113 </font></td>
    <td WIDTH="107" VALIGN="TOP" align="right" height="19"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    381 </font></td>
    <td WIDTH="107" VALIGN="TOP" align="right" height="19"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    175 </font></td>
  </tr>
  <tr>
    <td WIDTH="279" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><p
    ALIGN="JUSTIFY">Other</font></td>
    <td WIDTH="106" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">&nbsp; (113)</u></font></td>
    <td WIDTH="106" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">&nbsp; (297)</u></font></td>
    <td WIDTH="107" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">&nbsp; (147)</u></font></td>
    <td WIDTH="107" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2"><u><p
    ALIGN="RIGHT">&nbsp; (327)</u></font></td>
  </tr>
  <tr>
    <td WIDTH="279" VALIGN="TOP" height="21"></td>
    <td WIDTH="106" VALIGN="TOP" align="right" height="21"></td>
    <td WIDTH="106" VALIGN="TOP" align="right" height="21"></td>
    <td WIDTH="107" VALIGN="TOP" align="right" height="21"></td>
    <td WIDTH="107" VALIGN="TOP" align="right" height="21"></td>
  </tr>
  <tr>
    <td WIDTH="279" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><p
    ALIGN="JUSTIFY">Operating profit</font></td>
    <td WIDTH="106" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;
    $ 2,919 </font></td>
    <td WIDTH="106" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    $ 2,217 </font></td>
    <td WIDTH="107" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    $ 5,383 </font></td>
    <td WIDTH="107" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    $ 4,217 </font></td>
  </tr>
  <tr>
    <td WIDTH="279" VALIGN="TOP" height="21"></td>
    <td WIDTH="106" VALIGN="TOP" align="right" height="21"></td>
    <td WIDTH="106" VALIGN="TOP" align="right" height="21"></td>
    <td WIDTH="107" VALIGN="TOP" align="right" height="21"></td>
    <td WIDTH="107" VALIGN="TOP" align="right" height="21"></td>
  </tr>
  <tr>
    <td WIDTH="279" VALIGN="TOP" height="18"><font FACE="Courier New" SIZE="2"><p
    ALIGN="JUSTIFY">Interest expense</font></td>
    <td WIDTH="106" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;
    <u>&nbsp; &nbsp; 344 </u></font></td>
    <td WIDTH="106" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    <u>&nbsp;&nbsp;&nbsp; 191 </u></font></td>
    <td WIDTH="107" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    <u>&nbsp;&nbsp;&nbsp; 674 </u></font></td>
    <td WIDTH="107" VALIGN="TOP" align="right" height="18"><font FACE="Courier New" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    <u>&nbsp;&nbsp;&nbsp; 382 </u></font></td>
  </tr>
  <tr>
    <td WIDTH="279" VALIGN="TOP" height="21"></td>
    <td WIDTH="106" VALIGN="TOP" align="right" height="21"></td>
    <td WIDTH="106" VALIGN="TOP" align="right" height="21"></td>
    <td WIDTH="107" VALIGN="TOP" align="right" height="21"></td>
    <td WIDTH="107" VALIGN="TOP" align="right" height="21"></td>
  </tr>
  <tr>
    <td WIDTH="279" VALIGN="bottom" height="66"><font FACE="Courier New" SIZE="2">Income
    before income taxes,<br>
    &nbsp; minority interest, equity in<br>
    &nbsp; unconsolidated subsidiaries<br>
    &nbsp; and cumulative effect of<br>
    &nbsp; accounting change</font></td>
    <td WIDTH="106" VALIGN="bottom" align="right" height="66"><font FACE="Courier New"
    SIZE="2"><strong>&nbsp;&nbsp;&nbsp; <u>$ 2,575 </u></strong></font></td>
    <td WIDTH="106" VALIGN="bottom" align="right" height="66"><font FACE="Courier New"
    SIZE="2"><strong>&nbsp;&nbsp;&nbsp;&nbsp; <u>$ 2,026 </u></strong></font></td>
    <td WIDTH="107" VALIGN="bottom" align="right" height="66"><font FACE="Courier New"
    SIZE="2"><strong>&nbsp;&nbsp;&nbsp;&nbsp; <u>$ 4,709 </u></strong></font></td>
    <td WIDTH="107" VALIGN="bottom" align="right" height="66"><font FACE="Courier New"
    SIZE="2"><strong>&nbsp;&nbsp;&nbsp;&nbsp; <u>$ 3,835 </u></strong></font></td>
  </tr>
</TABLE>
</center></div><font FACE="Courier New">

<p ALIGN="center"><strong>Page 6 of 16 (Form 10-Q)<br>
</strong></p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; Operating profit information for the three and six
months ended July 31, 1999, has been reclassified to conform to current year presentation.
For this reclassification, certain intercompany operating profits and corporate expenses
have been moved from the other category to the operating segments.</p>
<u>

<p>NOTE 5. Comprehensive Income</p>
</u>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; Statement of Financial Accounting Standards No. 130,
&quot;Reporting Comprehensive Income,&quot; establishes standards for reporting and
display of comprehensive income and its components. Comprehensive income is net income,
plus certain other items that are recorded directly to shareholders&#146; equity,
bypassing net income. The only such item currently applicable to the Company is foreign
currency translation adjustments. </p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; Comprehensive income was $1,223 million and $1,247
million for the quarters ended July 31, 2000 and 1999, respectively and was $2,423 million
and $2,191 million for the six months ended July 31, 2000 and 1999, respectively.</p>
<u>

<p ALIGN="JUSTIFY">NOTE 6. Acquisition of Additional Interest in Wal-Mart de Mexico</p>
</u>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; On April 19, 2000, the Company purchased 271.3
million shares of stock in Wal-Mart de Mexico S.A. de C.V. (formerly Cifra S.A. de C.V.)
at a total cash cost of $587 million. This transaction increased the Company&#146;s
ownership percentage by approximately 6% and resulted in goodwill of $422 million, which
is being amortized over a 40-year life. In a separate transaction on April 19, 2000, the
Company also issued 10.8 million shares of its common stock to two private investors and
received proceeds of $582 million. These proceeds were used to replenish operating cash,
which was reduced as a result of our purchase of Wal-Mart de Mexico stock described above.</p>
<u>

<p ALIGN="JUSTIFY">NOTE 7. Accounting Changes</p>
</u>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; In fiscal 2000, the Company changed its method of
accounting for Sam&#146;s membership fee revenue both domestically and internationally.
Previously, the Company had recognized membership fee revenues when received. Under the
new accounting method, the Company recognizes membership fee revenues over the term of the
membership, which is 12 months. The Company recorded a non-cash charge of $198 million
(after reduction for income taxes of $119 million), or $.04 per share to reflect the
cumulative effect of the accounting change as of the beginning of fiscal 2000. The
comparative financial statements presented in this Form 10-Q reflect the effects of the
accounting change required by SAB 101.</p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; An additional requirement of SAB 101 is that layaway
transactions be recognized upon delivery of the merchandise to the customer rather than at
the time that the merchandise is placed on layaway. The Company offers a layaway program
that allows customers to purchase certain items and make payments on these purchases over
a specific period. Until the first quarter of fiscal 2001, the Company recognized revenues
from these layaway transactions at the time that the merchandise was placed on layaway.
During the first quarter of fiscal 2001, the Company changed its accounting method for
layaway transactions so that the revenue from these</p>

<p ALIGN="center"><strong>Page 7 of 16 (Form 10-Q)<br>
</strong></p>

<p ALIGN="JUSTIFY">transactions is not recognized until the customer satisfies all payment
obligations and takes possession of the merchandise. The impact of this accounting change
was not material and did not impact earnings per share in the second quarter of fiscal
2001. Since layaway transactions are a small portion of the Company&#146;s revenue, the
Company does not anticipate that this accounting change will have a material impact on the
results for the fiscal year. However, due to the seasonality of the retail industry, the
accounting change will result in a shift of revenues and earnings between quarters,
especially from the third quarter into the fourth quarter of the fiscal year. Due to the
de minimis impact of this accounting change, prior fiscal year quarters have not been
restated.</p>
<u>

<p ALIGN="JUSTIFY">NOTE 8. Subsequent Event</p>
</u>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; In August 2000, the Company sold notes totaling $500
million. These notes bear interest at 6.875% and will be due in August 2002. Additionally
in August 2000, the Company entered into an interest rate swap agreement whereby it will
receive a fixed rate of 6.875% and will pay a floating rate which will be reset monthly
based on the LIBOR. The proceeds from the sale of these notes were used to reduce the
short-term commercial paper debt incurred to retire long-term indebtedness that matured in
June 2000. Therefore, the Company classified $499 million of commercial paper as long-term
debt on the July 31, 2000 balance sheet.</p>
<b>

<p>Item 2. Management&#146;s Discussion and Analysis of Financial Condition<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and Results of Operations</p>
</b><u>

<p ALIGN="JUSTIFY">Results of Operations</p>
</u>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; The Company had 20% and 22% sales increases for the
quarter and the six months ended July 31, 2000, respectively, when compared to the same
periods in fiscal 2000. These sales increases were attributable to the Company&#146;s
domestic and international expansion programs and domestic comparative store sales
increases of 5.4% and 7.2% for the quarter and the six months ended July 31, 2000,
respectively. These comparative store sales increases for the Wal-Mart stores segment were
5.2% and 7.3% for the quarter and six months ended July 31, 2000, respectively. For the
Sam&#146;s Clubs segment the comparative sales increases were 6.0% and 6.5% for the
quarter and six months ended July 31, 2000, respectively.</p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; Domestic expansion activity during the first six
months of fiscal 2001 included the addition of 13 new Wal-Mart stores, 27 new
Supercenters, four new Sam&#146;s Clubs and the conversion of 48 Wal-Mart stores to
Supercenters. International expansion during the first six months of fiscal 2001 included
the addition of two units in Brazil, two units in China, 15 units in Mexico and eight
units in the United Kingdom, including the Company&#146;s first Supercenter in the United
Kingdom. </p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; At July 31, 2000, the Company had 1,766 Wal-Mart
stores, 796 Supercenters, and 466 Sam&#146;s Clubs in the United States. Internationally,
the Company operated units in Argentina(10), Brazil(16), Canada(166), Germany(95), Korea
(5), Mexico(473), Puerto Rico(15), the United Kingdom<br>
(240) and under joint venture agreements in China (8). At July 31, 1999, the Company had
1,835 Wal-Mart stores, 622 Supercenters, and 453 Sam&#146;s Clubs in the United States.
Internationally, the Company operated units in Argentina(13), Brazil(14), Canada(155),
Germany(95), Mexico(433) and Puerto Rico(15) and under joint venture agreements in
China(6) and Korea (5).</p>

<p ALIGN="center"><strong>Page 8 of 16 (Form 10-Q)</strong>&nbsp;<br>
</p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; The Wal-Mart Stores segment had 11.4% and 13.2%
sales increases for the quarter and six months ended July 31, 2000, respectively, when
compared to the sales in the same periods in fiscal 2000. These increases were due to
continued expansion activities within the segment and sales increases in comparable
stores. The Wal-Mart Stores segment sales as a percentage of total Company sales decreased
from 69.2% and 69.1% in the quarter and six months ended July 31, 1999, to 64.3% and 64.2%
for the quarter and six months ended July 31, 2000, respectively. This decrease is a
result of international sales growth resulting from the ASDA Group PLC (ASDA) acquisition
which was completed in the third quarter of fiscal 2000.</p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; The Sam&#146;s Clubs segment had 8.3% and 8.6% sales
increases for the quarter and six months ended July 31, 2000, respectively, when compared
to the sales in the same periods in fiscal 2000. These increases were due to continued
expansion activities within the segment and sales increases in comparable clubs.
Sam&#146;s Clubs sales as a percentage of total Company sales fell from 16.0% in each of
the quarter and six months ended July 31, 1999, to 14.5% and 14.3% for the quarter and six
months ended July 31, 2000, respectively. This decrease is largely as a result of the ASDA
acquisition and more units being added in other segments.</p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; The International segment had 101.1% and 109.4%
sales increases for the quarter and six months ended July 31, 2000, respectively, when
compared to the sales in the same periods in fiscal 2000. These increases were due
principally to expansion activities which included the acquisition of ASDA, which was
completed in the third quarter of fiscal 2000. Disregarding the ASDA results, the
International segment sales increase was 12.6% and 14.9% for the quarter and six months
ended July 31, 2000, respectively. International sales accounted for 16.1% and 16.4% of
total Company sales in the quarter and first six months of fiscal 2001, respectively,
compared with 9.6% and 9.5% during the same periods in fiscal 2000. </p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; The Company&#146;s gross profit as a percentage of
sales increased from 21.7% in the second quarter of fiscal 2000 to 21.8% during the second
quarter of fiscal 2001. For the six-month period ended July 31, 2000, gross profit as a
percentage of sales was 21.8%, up from 21.6% in last year&#146;s comparable period. The
improvements in gross profit occurred despite the continuation of the Company&#146;s price
rollback program and with significant growth in the lower margin food business. The
Sam&#146;s Clubs segment comprises a lower percentage of consolidated Company sales. As a
result, the gross profit stated as a percentage of sales for the Company as a whole, is
positively impacted since Sam&#146;s Clubs contribution to gross profit is a lower
percentage than that of the Wal-Mart and International operating segments. Additionally,
markdowns and shrinkage</p>

<p ALIGN="center"><strong>Page 9 of 16 (Form 10-Q)</strong></p>

<p><br>
for the quarter and first six months of fiscal 2001 were down as a percentage of sales
when compared to the same period in fiscal 2000.</p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; Operating, selling, general and administrative
expenses, as a percentage of sales, were 16.5% for the second quarter of fiscal 2001, down
from 17.1% in the corresponding period last year and 16.8% compared with 17.0% for the
six-month period. Expenses for the quarter and six-month period in fiscal 2000 were
impacted by the May 16, 1999, settlement of a lawsuit, which resulted in a charge in the
second quarter of fiscal 2000. Disregarding the charge taken in connection with this
settlement, expenses would have increased by 8 basis points and 7 basis points, as a
percentage of sales, for the quarter and six-month period ended July 31, 2000,
respectively. Expenses as a percentage of sales are negatively affected in the
consolidated results due to the change in percentages of the total volume generated by
Sam&#146;s Club and the International segments. The volume generated by the Sam&#146;s
club segment, which has lower expenses as a percent of sales, decreased as a proportion of
the total volume and the percentage of the total volume generated by the International
segment, which has higher expenses as a percent of sales, increased. </p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; Expenses as a percent of sales for the Wal-Mart
stores segment were largely unchanged from the prior year second quarter and six month
periods. The Sam&#146;s Clubs segment experienced a slight decrease in expenses as a
percent of sales when comparing the second quarter to the same period last year, and a
slight increase when comparing the six month periods.</p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; The International segment&#146;s operating profit
increased from $113 million in the second quarter of fiscal 2000 to $232 million for the
second quarter of fiscal 2001. Operating profit increased $206 million for the six-month
period ended July 31, 2000 when compared to the same period of the previous year. This
increase is due to the inclusion of the operating results of ASDA in the three and six
month periods ending July 31, 2000, which are not included in comparable periods in fiscal
2000. Partially offsetting the increase caused by the ASDA acquisition are the negative
impacts of store remodeling costs, start-up costs for a new distribution system, excess
inventory and transition related expenses in the Company&#146;s German units.</p>
<u>

<p ALIGN="JUSTIFY">Liquidity and Capital Resources</p>
</u>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; Cash flows provided by operating activities were
$2.0 billion for the first six-months of fiscal 2001, compared with $2.7 billion for the
comparable period in fiscal 2000. Operating cash flow was down for the six-months ended
July 31, 2000, primarily due to a decrease of $336 million in accounts payable compared
with an increase in accounts payable of $914 million in fiscal 2000 and the addition of
$1.4 billion in inventory compared with an increase in inventory of $1.1 billion in the
comparable period in fiscal 2000. </p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; Cash and cash equivalents decreased by 13%, or $198
million, when compared with the end of the same period in fiscal 2000. During the first
six months of fiscal 2001, the Company paid $193 million to repurchase</p>

<p ALIGN="center"><strong>Page 10 of 16 (Form 10-Q)</strong></p>

<p ALIGN="JUSTIFY"><br>
its common stock, issued common stock for proceeds of $582 million, paid dividends of $534
million, invested $3,724 million in capital expenditures and paid $617 million for
additional interests in its Korean subsidiary and in Wal-Mart de Mexico SA de CV.
Additionally, during the six-months ended July 31, 2000, the Company increased its
commercial paper borrowings by $2.1 billion and received proceeds from the issuance of
long-term debt in the amount of $1 billion. The Company made scheduled payments of
long-term debt totaling $1.3 billion during the first half of fiscal 2001. </p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; On April 19, 2000, the Company sold to two private
offshore investors for cash, 10,810,837 shares of its common stock, $0.10 par value per
share (the &quot;Common Stock&quot;), for an aggregate price of $582 million. The Company
sold the shares of common stock to such purchasers in reliance on the exemption contained
in Section 4(2) of the Securities Act of 1933, as amended (the &quot;Securities
Act&quot;). The sales were not underwritten, and the Company paid no commissions or
discounts in connection with those sales. The Company used the proceeds of the sales to
replenish its operating cash, which was reduced as a result of its purchase earlier on
April 19, 2000, of a block of class V common shares of its subsidiary, Wal-Mart de Mexico,
S.A. de C.V., over the Mexican Stock Exchange.</p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; At July 31, 2000, the Company had total assets of
$73,407 million compared with total assets of $70,349 million at January 31, 2000. Working
capital deficit at July 31, was $1,491 million, an increase of $44 million from $1,447
million at January 31, 2000. The ratio of current assets to current liabilities was 0.9 to
1.0, at July 31, 2000, January 31, 2000 and July 31, 1999.</p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; In June 2000, the call option on $500 million of
outstanding debt with imbedded call and put options was exercised and all of the
outstanding bonds were purchased from the bondholders. The bonds were then remarketed. The
remarketed bonds are due June 2018, bear interest at an initial rate of 5.955% and will be
subject to annual put/call options which can be exercised every June 1. The interest rate,
if the bonds are not put to the Company, will be reset as a fixed rate every June 1
through June 2017. The Company received no proceeds from the resale of the bonds and will
continue to pay the interest on the bonds annually each June. </p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; In August 2000, the Company sold notes totaling $500
million. These notes bear interest at 6.875% and will be due in August 2002. Additionally
in August 2000, the Company entered into an interest rate swap agreement whereby it will
receive a fixed rate of 6.875% and will pay a floating rate which will be reset monthly
based on the LIBOR. The proceeds from the sale of these notes were used to reduce the
short-term commercial paper debt incurred to retire long-term indebtedness that matured in
June 2000. Therefore, the Company classified $499 million of commercial paper as long-term
debt in the July 31, 2000 balance sheet.</p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; The Company anticipates generating sufficient
operating cash flow to pay dividends, to fund all capital expenditures, and to repay the
commercial paper and short-term borrowings. The Company plans to refinance existing
long-term debt as it matures and may desire to obtain</p>

<p ALIGN="center"><strong>Page 11 of 16 (Form 10-Q)</strong></p>

<p ALIGN="JUSTIFY"><br>
additional long-term financing for other purposes or for strategic reasons. The Company
anticipates no difficulty in obtaining long-term financing in view of its excellent credit
rating and favorable experiences in the debt market in the recent past. After the August
debt issuance the Company has a shelf registration under which it can sell up to $2.5
billion of additional debt securities in the public markets.</p>
<u>

<p ALIGN="JUSTIFY">Accounting Pronouncements</p>
</u>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; In June 1998, the Financial Accounting Standards
Board (FASB) issued Statement No. 133, &quot;Accounting for Derivative Instruments and
Hedging Activities.&quot; The Statement will be effective for the Company beginning
February 1, 2001. The new Statement requires all derivatives to be recorded on the balance
sheet at fair value and establishes accounting treatment for three types of hedges: hedges
of changes in the fair value of assets, liabilities, or firm commitments; hedges of the
variable cash flows of forecasted transactions; and hedges of foreign currency exposures
of net investments in foreign operations. The Company is analyzing the implementation
requirements and currently does not anticipate there will be a material impact on the
results of operations or financial position after the adoption of Statement No. 133.</p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; In March 2000, the Financial Accounting Standards
Board (&quot;FASB&quot;) issued FASB Interpretation No. 44 (&quot;FIN 44&quot;),
&quot;Accounting of Certain Transactions involving Stock Compensation an interpretation of
APB Opinion No. 25.&quot; FIN 44 clarifies the application of Opinion 25 for (a) the
definition of employee for purposes of applying Opinion 25, (b) the criteria for
determining whether a plan qualifies as a noncompensatory plan, (c) the accounting
consequence of various modifications to the terms of a previously fixed stock option or
award, and (d) the accounting for an exchange of stock compensation awards in a business
combination.</p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; FIN 44 is effective July 1, 2000, but certain
conclusions cover specific events that occur after either December 15, 1998, or January
12, 2000. Management believes that the impact of FIN 44 will not have a material effect on
the financial position or results of operations of the Company.</p>
<b>

<p>Item 3. Quantitative and Qualitative Disclosures About Market Risk</p>
</b><u>

<p ALIGN="JUSTIFY">Market Risk</p>
</u>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; Market risks relating to the Company&#146;s
operations result primarily from changes in interest rates and changes in foreign exchange
rates. The Company&#146;s market risks at July 31, 2000 are similar to those disclosed in
the Company&#146;s Form 10-K for the year ended January 31, 2000, however, the Company has
increased the notional amount of cross currency swaps by $2.5 billion during the first six
months of fiscal 2001. Additionally, the fair value of the Company&#146;s interest rate
derivative financial instruments related to debt and currency swaps has increased from
$152 million at January 31, 2000 to $675 million at July 31, 2000. The information
concerning market risk under the sub-caption &quot;Market Risk&quot; of the caption
&quot;Management&#146;s Discussion and Analysis&quot; on pages 21 through 24 of the Annual
Report to Shareholders for the year ended January 31, 2000, is hereby incorporated by
reference.</p>

<p ALIGN="center"><strong>Page 12 of 16 (Form 10-Q)</strong></p>
<b>

<p><br>
PART II. OTHER INFORMATION</p>
</font><u><font FACE="Courier">

<p ALIGN="JUSTIFY"></font></u><font FACE="Courier New">Item 1.</b> <b>Legal Proceedings</font><u></p>
</u></b>

<p ALIGN="JUSTIFY"><font FACE="Courier New">&nbsp;&nbsp;&nbsp; The Company is not a party
to any material pending legal proceedings. Neither the Company nor any of its properties
is subject to any material pending legal proceeding, other than routine litigation
incidental to the Company&#146;s business.</font></p>

<p ALIGN="JUSTIFY"><font FACE="Courier New">&nbsp;&nbsp;&nbsp; The Company recently opened
a Supercenter in Honesdale, Pennsylvania. In February of 1999, the Company settled claims
made by the Pennsylvania Department of Environmental Protection (PDEP) that a
subcontractor&#146;s acts and omissions relating to the construction of the Supercenter
led to excess erosion and sedimentation of a nearby creek. In the settlement, the Company
agreed to pay a fine of $25,000 and to perform a $75,000 community environmental project
in the Honesdale area. The Company is negotiating settlement of a claim by the United
States Army Corps of Engineers that the construction resulted in the filling of
approximately 0.76 acres in excess of the permitted fill area of waters and wetlands at
the site. The proposed settlement with the Corps will require the Company to pay $200,000
to a non-profit corporation for the purchase of local wetlands conservation areas and
easements. The Company has been reimbursed for these amounts by the contractor on the
project.</font></p>

<p ALIGN="JUSTIFY"><font FACE="Courier New">&nbsp;&nbsp;&nbsp; The United States
Environmental Protection Agency (EPA) is threatening to bring suit against the Company and
five of its contractors over alleged violations of a 1992 storm water permit issued with
respect to various Wal-Mart development sites in Texas, New Mexico and Oklahoma. The EPA
has presented the Company with penalty calculations of $5.6 million. </font></p>

<p ALIGN="JUSTIFY"><font FACE="Courier New">&nbsp;&nbsp;&nbsp; During the first quarter of
fiscal 2001, the State of Connecticut filed suit against the Company for various
violations of state environmental laws alleging the Company failed to adequately permit
and or maintain records relating to storm water management practices at 12 stores. The
Company will vigorously defend against these allegations</font><font FACE="Courier New"
SIZE="2">.</font><font SIZE="2"></p>
</font><b>

<p><font FACE="Courier New">Item 2. Changes in Securities and Use of Proceeds</p>

<p ALIGN="JUSTIFY"></b>&nbsp;&nbsp;&nbsp; As noted in &quot;Management&#146;s Discussion
and Analysis of Financial Condition and Results of Operation&#151;Liquidity and Capital
Resources&quot;, on April 19, 2000, the Company sold 10,810,837 shares of its Common
Stock. The shares were sold to two private offshore investors for an aggregate cash price
of $582,450,449. The shares were sold to those investors in reliance on the exemption from
the registration requirements of the Securities Act contained in Section 4(2) of the
Securities Act. The offer and sale of the shares was made in negotiated transactions that
did not involve any public solicitation or advertising of the offer of the shares. The
Company offered and sold the shares only to sophisticated investors who could evaluate the
merits and risks of an investment in shares of the Common Stock. The Company put into
place the usual restrictive legends on the share certificates and those other precautions</p>

<p ALIGN="center"><strong>Page 13 of 16 (Form 10-Q)</strong></p>

<p ALIGN="JUSTIFY"><br>
to prevent the resale or other disposition of the shares except pursuant to an effective
registration statement or an available exemption from the registration requirements of the
Securities Act. The offer and sale of those shares was not underwritten, and no
underwriting discounts or commissions were paid by the Company in connection with the
offer and sale of those shares.</p>
<b>

<p>Item 4. Submission of Matters to a Vote of Security Holders</p>
</b>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; The Company&#146;s Annual Shareholders&#146; Meeting
was held June 2, 2000, in Fayetteville, Arkansas.</p>
<u>

<p ALIGN="JUSTIFY">Election of Directors:</p>
</u>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; At that meeting, the shareholders elected for
one-year terms all persons nominated for directors as set forth in the Company&#146;s
proxy statement dated April 14, 2000. </p>
</font><div align="center"><center>

<table CELLSPACING="0" BORDER="0" CELLPADDING="0">
  <tr>
    <td WIDTH="35%" VALIGN="TOP"></td>
    <td WIDTH="18%" VALIGN="bottom"><font FACE="Courier New" size="2"><u><b><p ALIGN="CENTER">For</b></u></font></td>
    <td WIDTH="17%" VALIGN="bottom"><font FACE="Courier New" size="2"><b><p ALIGN="CENTER">Against
    or <u>Withheld</u></b></font></td>
    <td WIDTH="16%" VALIGN="bottom"><font FACE="Courier New" size="2"><u><b><p ALIGN="CENTER">Abstentions</b></u></font></td>
    <td WIDTH="14%" VALIGN="bottom"><font FACE="Courier New" size="2"><b><p ALIGN="CENTER">Broker<br>
    <u>Non-Votes</u></b></font></td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP"></td>
    <td WIDTH="18%" VALIGN="TOP"></td>
    <td WIDTH="17%" VALIGN="TOP"></td>
    <td WIDTH="16%" VALIGN="TOP"></td>
    <td WIDTH="14%" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="JUSTIFY">John T.
    Chambers</font></td>
    <td WIDTH="18%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">3,957,870,394</font></td>
    <td WIDTH="17%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">54,552,478</font></td>
    <td WIDTH="16%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">0</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">0</font></td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="JUSTIFY">Stephen
    Friedman</font></td>
    <td WIDTH="18%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">3,928,432,324</font></td>
    <td WIDTH="17%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">83,990,548</font></td>
    <td WIDTH="16%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">0</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">0</font></td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="JUSTIFY">Stanley
    C. Gault</font></td>
    <td WIDTH="18%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">3,967,278,418</font></td>
    <td WIDTH="17%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">45,144,454</font></td>
    <td WIDTH="16%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">0</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">0</font></td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="JUSTIFY">David D.
    Glass</font></td>
    <td WIDTH="18%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">3,950,824,417</font></td>
    <td WIDTH="17%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">61,598,455</font></td>
    <td WIDTH="16%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">0</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">0</font></td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="JUSTIFY">Roland
    A. Hernandez</font></td>
    <td WIDTH="18%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">3,973,659,422</font></td>
    <td WIDTH="17%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">38,763,450</font></td>
    <td WIDTH="16%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">0</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">0</font></td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="left">Dr.
    Frederick S. Humphries</font></td>
    <td WIDTH="18%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">3,973,483,125</font></td>
    <td WIDTH="17%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">38,939,747</font></td>
    <td WIDTH="16%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">0</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">0</font></td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="JUSTIFY">E.
    Stanley Kroenke</font></td>
    <td WIDTH="18%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">3,950,595,522</font></td>
    <td WIDTH="17%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">61,827,350</font></td>
    <td WIDTH="16%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">0</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">0</font></td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="JUSTIFY">Elizabeth
    A. Sanders</font></td>
    <td WIDTH="18%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">3,973,466,406</font></td>
    <td WIDTH="17%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">38,956,466</font></td>
    <td WIDTH="16%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">0</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">0</font></td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="JUSTIFY">H. Lee
    Scott, Jr.</font></td>
    <td WIDTH="18%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">3,968,876,850</font></td>
    <td WIDTH="17%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">43,546,022</font></td>
    <td WIDTH="16%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">0</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">0</font></td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="JUSTIFY">Jack C.
    Shewmaker</font></td>
    <td WIDTH="18%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">3,967,016,608</font></td>
    <td WIDTH="17%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">45,406,264</font></td>
    <td WIDTH="16%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">0</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">0</font></td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="JUSTIFY">Donald
    G. Soderquist</font></td>
    <td WIDTH="18%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">3,968,499,211</font></td>
    <td WIDTH="17%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">43,923,661</font></td>
    <td WIDTH="16%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">0</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">0</font></td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="JUSTIFY">Dr.
    Paula Stern</font></td>
    <td WIDTH="18%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">3,973,410,333</font></td>
    <td WIDTH="17%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">39,012,539</font></td>
    <td WIDTH="16%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">0</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">0</font></td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="JUSTIFY">Jose H.
    Villarreal</font></td>
    <td WIDTH="18%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">3,973,427,100</font></td>
    <td WIDTH="17%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">38,995,772</font></td>
    <td WIDTH="16%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">0</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">0</font></td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="JUSTIFY">John T.
    Walton</font></td>
    <td WIDTH="18%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">3,968,700,364</font></td>
    <td WIDTH="17%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">43,722,508</font></td>
    <td WIDTH="16%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">0</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">0</font></td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="JUSTIFY">S.
    Robson Walton</font></td>
    <td WIDTH="18%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">3,968,872,773</font></td>
    <td WIDTH="17%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">43,550,099</font></td>
    <td WIDTH="16%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">0</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">0</font></td>
  </tr>
</TABLE>
</center></div><font FACE="Courier New">

<p ALIGN="JUSTIFY"><br>
The Shareholders rejected a shareholder proposal regarding Glass Ceiling Review.</p>
</font><div align="center"><center>

<table CELLSPACING="0" BORDER="0" CELLPADDING="0">
  <tr>
    <td VALIGN="bottom" width="170"><font FACE="Courier New" size="2"><u><b><p ALIGN="CENTER">For</b></u></font></td>
    <td VALIGN="bottom" width="149"><font FACE="Courier New" size="2"><b><p ALIGN="CENTER">Against
    or <u>Withheld</u></b></font></td>
    <td VALIGN="bottom" width="152"><font FACE="Courier New" size="2"><u><b><p ALIGN="CENTER">Abstentions</b></u></font></td>
    <td VALIGN="bottom" width="156"><font FACE="Courier New" size="2"><b><p ALIGN="CENTER">Broker<br>
    <u>Non-Votes</u></b></font></td>
  </tr>
  <tr>
    <td WIDTH="170" VALIGN="TOP"></td>
    <td WIDTH="149" VALIGN="TOP"></td>
    <td WIDTH="152" VALIGN="TOP"></td>
    <td WIDTH="156" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td WIDTH="170" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">176,715,608</font></td>
    <td WIDTH="149" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">3,317,771,179</font></td>
    <td WIDTH="152" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">109,956,760</font></td>
    <td WIDTH="156" VALIGN="TOP"><font FACE="Courier New" size="2"><p ALIGN="RIGHT">407,979,325</font></td>
  </tr>
</TABLE>
</center></div><font FACE="Courier New"><b>

<p align="center">Page 14 of 16 (Form 10-K)</p>

<p><br>
Item 5. Other Information</p>
</b>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; The Private Securities Litigation Reform Act of 1995
provides a safe harbor for forward-looking statements made by or on behalf of the Company.
Certain statements contained in Management&#146;s Discussion and Analysis and in other
Company filings are forward-looking statements. These statements discuss, among other
things, expected growth, future revenues, future cash flows and future performance. The
forward-looking statements are subject to risks and uncertainties including but not
limited to the cost of goods, competitive pressures, inflation, consumer debt levels,
currency exchange fluctuations, trade restrictions, changes in tariff and freight rates,
Year 2000 issues, interest rate fluctuations and other capital market conditions, and
other risks indicated in the Company&#146;s filings with the United States Securities and
Exchange Commission. Actual results may materially differ from anticipated results
described in these statements.</p>
<b>

<p>Item 6. Exhibits and Reports on Form 8-K</p>

<blockquote>
  <p></b>(a) The following documents are filed as an exhibit to this<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Form 10-Q:<b></p>
  </b>
</blockquote>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit 12 &#150;
Statement Re Computation of Ratios<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit 27 - Financial
Data Schedule</p>

<blockquote>
  <p>(b) Reports on Form 8-K </p>
  <blockquote>
    <blockquote>
      <p>Report of Form 8-K, dated June 1, 2000, with respect to the execution of a Second
      Supplemental Indenture, dated June 1, 2000 (the &quot;Second Supplemental
      Indenture&quot;), to the Indenture dated April 1, 1991, as supplemented by the First
      Supplemental Indenture dated September 9, 1992, between the Company and Bank One Trust
      company, NA, as successor trustee to The First National Bank of Chicago. The Second
      Supplemental Indenture was executed in order to amend the terms of a series of securities
      established under the Indenture entitled $500,000,000 Wal-Mart Stores, Inc. Puttable Reset
      Securities PURS (SM) due June 1, 2018.</p>
      <p align="center"><strong>Page 15 of 16 (Form 10-Q)</strong></p>
    </blockquote>
  </blockquote>
</blockquote>
<b>

<p ALIGN="CENTER"><br>
SIGNATURES</p>

<p ALIGN="CENTER">&nbsp;</p>
</b>

<p>Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto duly
authorized.</p>

<p><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
WAL-MART STORES, INC.</p>

<p>&nbsp;</p>

<p>Date: August 25, 2000&nbsp; &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>/s/
H. Lee Scott, Jr.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>
</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
H. Lee Scott, Jr.<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
President and <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Chief Executive Officer<u></p>
</u>

<p>&nbsp;</p>

<p>Date: August 25, 2000&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>/s/
Thomas M. Schoewe&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Thomas M. Schoewe<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Executive Vice President<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
and Chief<font FACE="Courier"> Financial Officer</font></p>
</font><font FACE="Courier">

<p>&nbsp;</p>

<p align="center"><strong>Page 16 of 16 (Form 10-K)</strong></p>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-12
<SEQUENCE>2
<FILENAME>0002.htm
<TEXT>

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<head>
</head>

<body>

<table CELLSPACING="0" BORDER="0" CELLPADDING="4">
  <tr>
    <td VALIGN="TOP" COLSPAN="8"><font FACE="Courier New" SIZE="2"><b><p ALIGN="CENTER">Exhibit
    12<br>
    Statement re computation of ratios</b></font></td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"></td>
    <td WIDTH="19%" VALIGN="TOP" COLSPAN="2"><font FACE="Courier New" SIZE="2"><p
    ALIGN="CENTER">Six Months<br>
    Ended<br>
    July 31,</font></td>
    <td WIDTH="47%" VALIGN="bottom" COLSPAN="5"><font FACE="Courier New" SIZE="2"><p
    ALIGN="CENTER">Fiscal Years Ended</font></td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"></td>
    <td WIDTH="9%" VALIGN="TOP" align="center"><font FACE="Courier New" SIZE="2"><u>2000</u></font></td>
    <td WIDTH="10%" VALIGN="TOP" align="center"><font FACE="Courier New" SIZE="2"><u>1999</u></font></td>
    <td WIDTH="10%" VALIGN="TOP" align="center"><font FACE="Courier New" SIZE="2"><u>2000</u></font></td>
    <td WIDTH="9%" VALIGN="TOP" align="center"><font FACE="Courier New" SIZE="2"><u>1999</u></font></td>
    <td WIDTH="9%" VALIGN="TOP" align="center"><font FACE="Courier New" SIZE="2"><u>1998</u></font></td>
    <td WIDTH="9%" VALIGN="TOP" align="center"><font FACE="Courier New" SIZE="2"><u>1997</u></font></td>
    <td WIDTH="9%" VALIGN="TOP" align="center"><font FACE="Courier New" SIZE="2"><u>1996</u></font></td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><font FACE="Courier New" SIZE="2">Income before income taxes</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">4,709</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">3,835**</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">9,083</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">7,323</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">5,719</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">4,877</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">4,359</font></td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><font FACE="Courier New" SIZE="2">Capitalized interest</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">(29)</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">(20)</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">(57)</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">(41)</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">(33)</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">(44)</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">(50)</font></td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><font FACE="Courier New" SIZE="2">Minority interest</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">(54)</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">(67)</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">(170)</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">(153)</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">(78)</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">(27)</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">(13)</font></td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><font FACE="Courier New" SIZE="2">Adjusted profit before tax*</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">4,627</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">3,748</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">8,856</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">7,129</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">5,608</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">4,806</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">4,296</font></td>
  </tr>
  <tr>
    <td WIDTH="98%" VALIGN="TOP" colspan="8"></td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><font FACE="Courier New" SIZE="2">Fixed charges</font></td>
    <td WIDTH="65%" VALIGN="TOP" align="right" colspan="7"></td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><font FACE="Courier New" SIZE="2">Debt interest</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">536</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">251</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">756</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">529</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">555</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">629</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">692</font></td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><font FACE="Courier New" SIZE="2">Capital lease interest</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">138</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">131</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">266</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">268</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">229</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">216</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">196</font></td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><font FACE="Courier New" SIZE="2">Capitalized interest</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">29</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">20</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">57</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">41</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">33</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">44</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">50</font></td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><font FACE="Courier New" SIZE="2">Interest component of rent</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">232</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">265</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">458</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">523</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">477</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">449</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">425</font></td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><font FACE="Courier New" SIZE="2">Total fixed expense</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">935</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">667</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">1,537</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">1,361</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">1,294</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">1,338</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">1,363</font></td>
  </tr>
  <tr>
    <td WIDTH="98%" VALIGN="TOP" colspan="8"></td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><font FACE="Courier New" SIZE="2">Profit before taxes and
    fixed expenses</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">5,561</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">4,415</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">10,393</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">8,490</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">6,902</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">6,144</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">5,659</font></td>
  </tr>
  <tr>
    <td WIDTH="98%" VALIGN="TOP" colspan="8"></td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP" HEIGHT="19"><font FACE="Courier New" SIZE="2"><b>Fixed charge
    coverage</b></font></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="19" align="right"><font FACE="Courier New" SIZE="2"><b>5.95</b></font></td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="19" align="right"><font FACE="Courier New" SIZE="2"><b>6.62</b></font></td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="19" align="right"><font FACE="Courier New" SIZE="2"><b>6.76</b></font></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="19" align="right"><font FACE="Courier New" SIZE="2"><b>6.24</b></font></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="19" align="right"><font FACE="Courier New" SIZE="2"><b>5.33</b></font></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="19" align="right"><font FACE="Courier New" SIZE="2"><b>4.59</b></font></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="19" align="right"><font FACE="Courier New" SIZE="2"><b>4.15</b></font></td>
  </tr>
</TABLE>
<font FACE="Courier New" SIZE="2">

<p>*&nbsp; Does not include the cumulative effect of accounting change recorded by the<br>
&nbsp;&nbsp; Company in Fiscal 2000</p>

<p>** Restated to reflect the impact on the six months ended July 31, 1999 of the <br>
&nbsp;&nbsp; accounting change recorded by the Company in fiscal 2000.</p>
</font>
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</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-27
<SEQUENCE>3
<FILENAME>0003.txt
<TEXT>

<TABLE> <S> <C>

<ARTICLE> 5

<S>                             <C>
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          JAN-31-2001
<PERIOD-END>                               JUL-31-2000
<CASH>                                           1,310
<SECURITIES>                                         0
<RECEIVABLES>                                    1,249
<ALLOWANCES>                                         0
<INVENTORY>                                     21,093
<CURRENT-ASSETS>                                25,245
<PP&E>                                          43,937
<DEPRECIATION>                                   9,048
<TOTAL-ASSETS>                                  73,407
<CURRENT-LIABILITIES>                           26,736
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                           445
<OTHER-SE>                                      27,651
<TOTAL-LIABILITY-AND-EQUITY>                    73,407
<SALES>                                         89,097
<TOTAL-REVENUES>                                90,035
<CGS>                                           69,709
<TOTAL-COSTS>                                   85,326
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                 674
<INCOME-PRETAX>                                  4,709
<INCOME-TAX>                                     1,733
<INCOME-CONTINUING>                              2,922
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     2,922
<EPS-BASIC>                                        .66
<EPS-DILUTED>                                      .65


</TABLE>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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