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&lt;HTML&gt;&lt;HEAD&gt;
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&lt;P
style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify; punctuation-wrap: simple"&gt;&lt;B&gt;&lt;FONT
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size=2&gt;1.&amp;nbsp; Accounting Policies&lt;/FONT&gt;&lt;/B&gt;&lt;/P&gt;
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&lt;P
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style="FONT-SIZE: 10pt; LETTER-SPACING: 0pt" face="Times New Roman" size=2&gt;The
accompanying unaudited consolidated financial statements should be read in
conjunction with the financial statement disclosures contained in the 2008
Form&amp;nbsp;10-K for Target Corporation (the Corporation). The same accounting
policies are followed in preparing quarterly financial data as are followed in
preparing annual data. See Note 1 in our Form&amp;nbsp;10-K for the fiscal year
ended January&amp;nbsp;31, 2009 for those policies. In the opinion of management,
all adjustments necessary for a fair statement of quarterly operating results
are reflected herein and are of a normal, recurring nature.&lt;/FONT&gt;&lt;/P&gt;
&lt;P
style="MARGIN: 0in 0in 0pt; LETTER-SPACING: -0.1pt; TEXT-ALIGN: justify; punctuation-wrap: simple"&gt;&lt;FONT
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size=2&gt;&lt;/FONT&gt;&amp;nbsp;&lt;/P&gt;
&lt;P
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style="FONT-SIZE: 10pt; LETTER-SPACING: 0pt" face="Times New Roman" size=2&gt;We
have performed an evaluation of events that have occurred subsequent to
August&amp;nbsp;1, 2009, and as of August&amp;nbsp;28, 2009 (the date of the filing of
this Form&amp;nbsp;10-Q). There have been no subsequent events that occurred during
such period that would require disclosure in this Form&amp;nbsp;10-Q or would be
required to be recognized in the Consolidated Financial Statements as of or for
the three and six-month periods ending August&amp;nbsp;1, 2009.&lt;/FONT&gt;&lt;/P&gt;
&lt;P
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&lt;P
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style="FONT-SIZE: 10pt; LETTER-SPACING: 0pt" face="Times New Roman" size=2&gt;Due
to the seasonal nature of our business, quarterly revenues, expenses, earnings
and cash flows are not necessarily indicative of the results that may be
expected for the full year.&lt;/FONT&gt;&lt;/P&gt;&lt;/BODY&gt;&lt;/HTML&gt;
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&amp;nbsp;
The
accompanying unaudited consolidated financial statements should be read in
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