NEWS RELEASE

GANDER MOUNTAIN AND ALLIANCE DATA SYSTEMS SIGN LONG-TERM AGREEMENT FOR INTEGRATED CREDIT CARD SERVICES

ST. PAUL, Minn., and DALLAS, Texas, July 25, 2005 – Gander Mountain (Nasdaq: GMTN), a leading outdoor lifestyle retailer, and Alliance Data Systems Corp. (NYSE: ADS), a leading provider of transaction services, credit services and marketing services, today announced that they have signed an agreement under which Alliance will provide a credit card program for Gander Mountain. Gander Mountain is one of the largest and fastest-growing retailers in the outdoor lifestyle industry, providing products and services for outdoor lifestyle enthusiasts who enjoy hunting, fishing, camping and boating.

“With its extensive retail industry experience, multiple consumer financing offerings and award-winning customer service call centers, Alliance Data Systems’ flexible program offerings meet our high standards of customer service and are geared toward building customer loyalty and increasing sales,” said Mark Baker, chief executive officer of Gander Mountain.  “As we learn more about our customers, we are better able to serve their needs and reward them for their patronage.”

“We are pleased that Gander Mountain has selected Alliance to deliver their integrated card program,” said Ivan Szeftel, president of Retail Services, Alliance Data Systems.  “Gander Mountain is a high-growth specialty retailer that also typifies our ideal client: they have a strong brand, an engaged customer base and an aggressive marketing plan in which credit plays a key role.  We are fundamentally aligned in our commitment to build a program that provides relevant benefits to their customers and competitive differentiation for Gander Mountain.  Together, we will work to meet their sales and growth goals while also strengthening customer loyalty to the brand.”

Under the terms of the agreement, Alliance will provide account acquisition and activation, receivables funding, card authorization, card issuance, statement generation, loyalty marketing and database services, remittance processing, and customer service functions.  Alliance will leverage its extensive expertise in analytics and marketing to deliver an integrated program that rewards best customers and engenders loyalty.   The card program will allow Gander Mountain to provide special financing incentives and reward customers with points, based on purchases made on the card, that may be redeemed for additional savings with Gander Mountain. 

About Gander Mountain Company
Gander Mountain Company (Nasdaq: GMTN), headquartered in Saint Paul, Minnesota, leads specialty retailers in serving the needs of outdoor enthusiasts with products and services for hunting, fishing camping and boating. Gander Mountain offers competitively priced outdoor equipment, technical apparel and footwear, as well as gunsmith, archery, ATV and marine services.  The stores feature national, regional and local brands as well as the company’s owned brand. Focused on a We Live Outdoors® culture, Gander Mountain dedicates itself to creating outdoor memories.  There are currently 91 Gander Mountain outdoor lifestyle stores in 15 states.  For the nearest store location call 800-282-5993 or visit www.GanderMountain.com.

About Alliance Data Systems
Alliance Data Systems is a leading provider of transaction services, credit services and marketing services, managing over 105 million consumer relationships for some of North America's most recognizable companies. Alliance creates and manages customized solutions that change consumer behavior and that enable its clients to build stronger, mutually beneficial relationships with their customers.  Headquartered in Dallas, Alliance Data Systems employs approximately 7,500 associates at 35 locations in the United States and Canada. For more information about the company, visit its web site, www.AllianceDataSystems.com.

Gander Mountain Company’s 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 "Risks and Factors Affecting Current and Future Results" section of the company's Annual Report on Form 10-K for fiscal 2004, as filed with the SEC, which is available at http://www.GanderMountain.com and at the SEC's website at http://www.sec.gov.

Alliance Data Systems’ Safe Harbor Statement/Forward Looking Statements
This news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements may use words such as "anticipate," "believe," "estimate," "expect," "intend," "predict," "project" and similar expressions as they relate to us or our management. When we make forward-looking statements, we are basing them on our management's beliefs and assumptions, using information currently available to us. Although we believe that the expectations reflected in the forward-looking statements are reasonable, these forward-looking statements are subject to risks, uncertainties and assumptions, including those discussed in our filings with the Securities and Exchange Commission.

If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may vary materially from what we projected. Any forward-looking statements contained in this news release reflect our current views with respect to future events and are subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We have no intention, and disclaim any obligation, to update or revise any forward-looking statements, whether as a result of new information, future results or otherwise.