Gander Mountain Reports Second Quarter Results

• Sales increase 18.6%
• Comparable store sales grow 4.2%

For the quarter, sales increased 18.6 percent to $216.5 million and comparable store sales increased 4.2 percent versus the second quarter of the prior year. This was the fourth consecutive quarter of positive comparable store sales gains. For the quarter, the company reported a net loss of $9.7 million, or $0.48 per share, compared to a net loss of $7.6 million, or $0.53 per share, in the second quarter of fiscal 2006.

For the 26 weeks ended August 4, 2007, the company reported sales of $392.3 million, an increase of 16.0 percent over the same period in 2006. Comparable store sales gained 2.7 percent. The company reported a net loss for the 26-week period of $32.5 million, or $1.61 per share, compared with a net loss of $30.5 million, or $2.14 per share for the 26 weeks ended July 29, 2006.

"In the second quarter, we saw regional strength in our eastern and southern stores. Same store sales were boosted by strong performance in hunting and PowerSports, including our new offering of Tracker Marine Group boats at selected stores.” said Mark Baker, president and CEO. “As we enter the second half of the fiscal year, Gander Mountain is well prepared to build on our sales momentum in the upcoming hunting and holiday seasons.”

Second Quarter 2007 Financial Highlights:

• The company opened three stores during the second quarter, bringing the number of stores operated at the close of the second quarter to 108. 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.
• Gross profit increased 16.9 percent to $51.5 million for the quarter. As a percent of sales, gross profit declined 35 basis points to 23.8 percent, reflecting a relative increase in PowerSports and decrease in apparel sales.
• Store operating expenses were $43.7 million for the quarter. Included in store operating expenses was over $2.0 million in labor and expense related to the company’s expansion of its PowerSports area, including the addition of the new Tracker Marine Group product line. As a percent of sales, store operating expenses were 20.2 percent for the quarter.
• In the second quarter, general and administrative expense (G&A) was $11.7 million. As a percent of sales, G&A increased 14 basis points to 5.4 percent, primarily reflecting the implementation of a new incentive compensation program.

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 108 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