Record Retail Segment Fourth Quarter Net Income of $23 million; Record Fourth Quarter Cash Flows from Operations of $108 million

ST. PAUL, Minn., Feb. 17 /PRNewswire-FirstCall/ -- Gander Mountain Company (http://www.gandermtn.com) (Nasdaq: GMTN), the nation's largest retail network of stores for hunting, fishing, camping, marine and outdoor lifestyle apparel and footwear, products and services today announced preliminary results for the fiscal fourth quarter ended January 31, 2009.

    Highlights:
    -- Record Retail segment fourth quarter net income of approximately $23
       million compared to net income of $7 million for the fourth quarter of
       fiscal 2007.
    -- Record cash flows provided by operating activities of approximately
       $108 million in the fourth quarter.
    -- Retail segment comparable store sales for the quarter of (0.2) percent,
       and a positive 2.7 percent excluding the sales of boats and ATVs and
       power sports services.
    -- Consolidated fourth quarter net income of approximately $20 million,
       after absorbing a loss of approximately $3.5 million from the new and
       expanding Direct segment.
    -- Reduction of total debt by approximately $38 million in fiscal 2008.

    Based on unaudited preliminary results:

The Company expects record fiscal 2008 fourth quarter consolidated sales of approximately $333 million compared to consolidated sales of $318 million for the fourth quarter of fiscal 2007, a 4.9 percent increase.

Retail segment sales were approximately $321 million, an increase of $9 million or 2.9 percent, as compared to the fiscal 2007 fourth quarter. Direct segment sales were approximately $12.1 million for the quarter, compared to $5.5 million for the same quarter last year. The increase in Direct segment sales resulted primarily from the inclusion of Overton's, acquired in December 2007, for the full quarter in fiscal 2008 and the startup of the new Gander Direct Internet and catalog operations in the third quarter of fiscal 2008.

Record retail segment net income was approximately $23 million compared to net income of $7 million for the fourth quarter last year, an improvement of $16 million.