Gander Mountain Reports First Quarter Results

• Sales increase 13.0%
• Comparable store sales grow 1%
• Gross profit improved 190 basis points

For the first quarter, sales increased 13.0 percent to $175.7 million and comparable store sales increased 1.0 percent versus the first quarter of the prior year. Losses from operations were $18.9 million, or 10.7 percent of sales, versus $19.0 million, or 12.2 percent of sales for the comparable period. For the quarter, the company reported a net loss of $22.8 million, or $1.14 per diluted share, compared to a net loss of $23.0 million, or $1.61 per diluted share, in the first quarter of fiscal 2006.

"In the first quarter, we demonstrated progress by reducing losses in what historically has been our seasonally smallest period while operating a higher number of stores. Though the gains were small, this is the first time as a public company that Gander Mountain has improved operating performance in the first quarter versus the prior year,” said Mark Baker, president and CEO. “We were pleased by the regional strength in our growing number of southern stores and by initial performance in our new offering of Tracker Marine Group boats at selected stores. Both these trends are evidence of the operating momentum we are gaining from our merchandising initiatives and geographic diversification strategy."

First Quarter 2007 Financial Highlights:

• The company opened one replacement store during the first quarter, bringing the number of stores operated at the close of the first quarter to 105. For all of fiscal 2007, the company plans to open a total of 13 stores, including three replacement stores, bringing total stores operated at year end to 115.
• For the quarter, operating losses improved to $18.9 million with six incremental stores open year over year.
• Gross profit increased 25.5 percent to $33.9 million for the quarter. As a percent of sales, gross profit increased 190 basis points to 19.3 percent.
• Store operating expenses were $40.6 million for the quarter. Included in store operating expenses was approximately $800,000 related to the company’s addition of the new Tracker Marine Group product line. As a percent of sales, store operating expenses were flat for the quarter.
• In the first quarter, general and administrative expense (G&A) was $11.5 million. As a percent of sales, G&A increased 50 basis points to 6.5 percent reflecting increased investment in technology and severance costs.

Conference Call Information

A conference call to discuss these results will be held today at 8:00 a.m. Central Time. The conference call will be Webcast from http://www.GanderMountain.com. To register for the event, please go to the Web site at least 15 minutes early to register, download and install any necessary audio software.

For those who cannot listen to the live broadcast, an archived Webcast will be available shortly after the conclusion of the call, and remain available on www.gandermountain.com for approximately 90 days. The transcript will be posted on the site as well.

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About Gander Mountain Company
Gander Mountain Company (Nasdaq: GMTN), headquartered in Saint Paul, Minnesota, is the nation’s largest retail network of stores for hunting, fishing, boating, camping, marine and outdoor lifestyle products and services. Since 1960, the Gander Mountain brand has offered an expanding assortment of competitively priced outdoor equipment, technical apparel and footwear, as well as gunsmith, archery, boat, ATV and marine services. The stores feature national, regional and local brands as well as the company’s owned brands. Focused on a “We Live Outdoors®” culture, Gander Mountain dedicates itself to creating outdoor memories. There are currently 106 conveniently located Gander Mountain outdoor lifestyle stores in 22 states. For the nearest store location call 800-282-5993 or visit www.gandermountain.com.

Cautionary Note Regarding Forward-Looking Statements
Any statements in this release that are not historical or current facts are forward-looking statements. All forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. Certain of these risks and uncertainties are described in the "Risk Factors" section of the company's Annual Report on Form 10-K for fiscal 2006 and other required reports, as filed with the SEC, which are available at www.gandermountain.com and at the SEC's website at www.sec.gov.

Contact: 
Gander Mountain
651-325-4300
investorrelations@gandermountain.com