BUILDING SMILES

2006 Annual Report

As Wal-Mart chairman, I assure you, our shareholders and associates, that our entireorganization is more committed than ever toDad’s founding principles.

Being a good andrespectful employer:

Wal-Mart offers tremendous opportunities for our associates to develop their professionalskills and pursue a long-term career if they choose. Our management teams foster anenvironment where people are treated honestly and with respect.

Improving the associate andcustomer shopping experience:

We must improve every day in what we offer our associates and our customers. Our every day low price position is the basis for our business. While this core principle is criticalto our growth and business strategy, by itself it is not enough anymore.This year, for example, our managementteam took the initial steps to revamp thefield organization structure of Wal-Mart U.S.The new structure gives more authority andresponsibility to those closest to the customer.It was not an easy change, but a necessary onethat will better serve our customers and associ-ates over the long term. We are driving similar improvement in other important businessareas, including compliance, diversity, andhealth care benefits for our associates.

Community citizenship:

We have a responsibility and an opportunity toimprove the quality of life in every community we serve. The tremendous potential we have was underscored in 2005 with the way our associates and Company responded to thehurricane disaster. The positive impact of our response was unparalleled in Wal-Mart’s history and clearly strengthened our reputation as acorporate leader and good citizen. Actions like our hurricane responseefforts provide a return on investment toour business – both short- and long-term. We are committed to applying our scale andefficiencies toward the public good aroundthe world. Recently, we launched initiativesto take a leadership role in improving our operations and products for our custom-ers that will benefit the environment. Our efforts, some of which are already in place,are designed to help conserve and sustain thenatural resources of our planet in the future,as well as save money for the Company andultimately our customers. And, these plans will continue to expand during the nextseveral years.

Integrity:

There is no area of leadership more importantthan this one. Our culture is built on the high-est level of integrity, and we will continue tohold all associates to these high standards. As a company and as individuals, we mustcontinue to lead in these principles. Powerfulleadership comes at all levels – from the boardroom, from store managers, and from cashiers,truck drivers and overnight stockers – who livedaily the principles that make Wal-Marta retail leader around the world.Rob Walton

Chairman of the Board of DirectorsWal-Mart Stores, Inc.

Building smiles today and tomorrow.

I am asked often what my father, Sam Walton, who founded Wal-Mart in 1962, would think of our Company today. There is no doubthe’d be proud of our success and the 1.8 million associates who serve our customers every day. He also would be proud that weremain true to the fundamental principles of leadership and business that he was so instrumental in establishing.

– Rob Walton