Highlights:   --  Retail sales gained 11.6 percent for the quarter, reflecting strong       performance in firearms, ammunition, marine and camping.   --  Comparable store sales grew 7.4 percent for the quarter. Excluding the       (5.4) percent impact of boat and ATV sales and power sport services,       which are categories the company is in the process of exiting,       comparable store sales were a positive 12.8 percent during the       quarter.    --  The seasonal nature of Gander Mountain's retail categories       historically produces a first quarter loss, however, the reported       retail segment net loss of $16.4 million is a $6.4 million, or 28.3       percent, improvement over the prior year.    

Fiscal 2009 first quarter consolidated sales were $227.7 million compared to consolidated sales of $207.7 million for the first quarter of fiscal 2008, a 9.6 percent increase.

Retail segment sales were $209.9 million, an increase of $21.9 million or 11.6 percent, as compared to the fiscal 2008 first quarter. Direct segment sales were $17.8 million for the quarter, compared to $19.7 million for the same quarter last year, a decrease of 9.6 percent.

Retail segment net loss was $16.4 million compared to a retail net loss of $22.8 million for the first quarter last year, an improvement of $6.4 million, or 28.3 percent. The improvement resulted primarily from sales gains, improved leverage in SG&A, and reduced interest expense.

Consolidated net loss was $18.6 million for the fiscal 2009 first quarter compared to a consolidated net loss of $24.4 million for the same quarter last year, an improvement of $5.8 million, or 23.7 percent. Consolidated results for the quarter include a net loss from the Direct segment of $2.3 million.

Comparable store sales during the first quarter of fiscal 2009 were 7.4 percent, an improvement over (0.2) percent in the fourth quarter of fiscal 2008. The firearms, ammunition, marine and camping categories all experienced strong sales performance during the quarter. Excluding the (5.4) percent impact of boat and ATV sales and power sport services, which are categories the company is in the process of exiting, comparable store sales were a positive 12.8 percent during the quarter.

Improvement in inventory management resulted in a decrease in Retail segment inventory of 16.8 percent per square foot, year-over-year.

Consolidated SG&A costs, as a percentage of sales, declined 110 basis points to 27.3 percent of sales in the quarter.

At the end of the quarter, the Company had total debt of $308 million, which is lower than the prior year by $39 million.

"Strong comparable sales performance in our retail segment allowed Gander Mountain to report continued operating improvement, even during the slowest seasonal period in the hunt-fish-camp categories and in a difficult retail environment. We continue to apply a more disciplined approach to our operations, capital, and expense decisions," said David C. Pratt, chairman and interim chief executive officer. "As expected, the 2009 retail environment remains challenging. We believe that our ongoing efforts to improve operating margins, manage costs and reduce debt will continue our momentum. I would like to thank our associates, vendors, and shareholders for their continued support."

About Gander Mountain Company

Gander Mountain Company , headquartered in Saint Paul, Minnesota, is the nation's largest retail network of stores for hunting, fishing, camping, marine, and outdoor lifestyle apparel and footwear, products and services. Established in 1960, the Gander Mountain brand has offered an expanding assortment of outdoor equipment, technical apparel and footwear, as well as gunsmith and archery 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 116 conveniently located Gander Mountain outdoor lifestyle stores in 23 states and three outlet stores. Customers may also shop at http://www.gandermtn.com/. For the nearest store location call 800-282-5993 or visit http://www.gandermtn.com/. Gander Mountain is also the parent company of Overton's (http://www.overtons.com/), a leading catalog and Internet based retailer of products for boating and other water sports enthusiasts.

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 2008 and other required reports, as filed with the SEC, which are available at http://www.gandermtn.com/ and at the SEC's Website at http://www.sec.gov/.

                         Gander Mountain Company            Consolidated Statements of Operations - Unaudited                  (In thousands, except per share data)                                                      13 Weeks Ended                                                    ----------------                                                    May 2,    May 3,                                                     2009      2008                                                     ----      ----   Sales                                           $227,654  $207,662   Cost of goods sold                               180,751   165,633                                                    -------   -------   Gross profit                                      46,903    42,029   Operating expenses:     Selling, general and administrative expenses    62,127    58,957     Exit costs and related charges                     285       776     Pre-opening expenses                               299     1,627                                                        ---     -----   Loss from operations                             (15,808)  (19,331)   Interest expense, net                              2,617     4,842                                                      -----     -----   Loss before income taxes                         (18,425)  (24,173)   Income tax provision                                 220       272                                                        ---       ---   Net loss                                        $(18,645) $(24,445)                                                   ========  ========    Basic and diluted loss per common share           $(0.77)   $(1.02)    Weighted average common shares outstanding        24,195    24,051                                 Gander Mountain Company                            Consolidated Balance Sheets                                   (In thousands)                                                    May 2,     January 31,                                                    2009         2009                                                    ----         ----                                                  unaudited   Assets   Current assets:     Cash and cash equivalents                      $1,546       $1,655     Accounts receivable                            16,539       10,784     Income taxes receivable                             -           62     Inventories                                   370,930      358,127     Prepaids and other current assets              17,943       12,132                                                    ------       ------   Total current assets                            406,958      382,760   Property and equipment, net                     158,814      162,180   Goodwill                                         47,114       47,114   Acquired intangible assets, net                  18,881       19,130   Other assets, net                                 1,811        1,936                                                     -----        -----   Total assets                                   $633,578     $613,120                                                  ========     ========    Liabilities and shareholders' equity   Current liabilities:     Borrowings under credit facility             $232,828     $204,514     Accounts payable                               81,546       63,863     Accrued and other current liabilities          49,527       55,456     Notes payable - related parties                10,000       10,000     Current maturities of long term debt           15,486       15,628                                                    ------       ------   Total current liabilities                       389,387      349,461    Long term debt                                   49,313       50,402   Deferred income taxes                             6,037        5,954   Other long term liabilities                      27,444       27,398    Shareholders' equity:     Preferred stock ($.01 par value,      5,000,000 shares authorized; no shares      issued and outstanding)                            -            -     Common stock ($.01 par value,      100,000,000 shares authorized;      24,195,736 shares issued and outstanding)        242          242     Additional paid-in-capital                    278,828      278,691     Accumulated deficit                          (117,673)     (99,028)                                                  --------      -------   Total shareholders' equity                      161,397      179,905                                                   -------      -------   Total liabilities and shareholders' equity     $633,578     $613,120                                                  ========     ========                                 Gander Mountain Company                 Consolidated Statements of Cash Flows - Unaudited                                  (In thousands)                                                             13 Weeks Ended                                                            ----------------                                                            May 2,    May 3,     Operating activities                                    2009      2008                                                             ----      ----     Net loss                                             $(18,645) $(24,445)     Adjustments to reconcile net loss to net cash      used in operating activities:       Depreciation and amortization                         7,819     8,010       Exit costs and related charges                          236       605       Stock-based compensation expense                        137       381       Gain on disposal of assets                              (35)       (6)       Change in operating assets and liabilities:         Accounts receivable                                (5,779)   (6,911)         Inventories                                       (12,803)  (22,318)         Prepaids and other current assets                  (5,726)   (6,159)         Other assets                                          (28)      (40)         Accounts payable and other liabilities             11,603    32,259         Deferred income taxes                                  83       134                                                                --       ---     Net cash used in operating activities                 (23,138)  (18,490)                                                           -------   -------     Investing activities     Purchases of property and equipment                    (2,748)   (6,460)     Acquisition of business and related expenses                -      (167)     Proceeds from sale of assets                               35        10                                                                --        --     Net cash used in investing activities                  (2,713)   (6,617)                                                            ------    ------     Financing activities     Borrowings under credit facility, net                  28,314    28,025     Reductions in long term debt                           (2,572)   (1,517)     Proceeds from exercise of stock options and      employee stock purchases                                   -        17                                                               ---        --     Net cash provided by financing activities              25,742    26,525                                                            ------    ------      Net (decrease) increase in cash                          (109)    1,418     Cash, beginning of period                               1,655     2,622                                                             -----     -----     Cash, end of period                                    $1,546    $4,040                                                            ======    ======    Non-cash investing activities: During the 13 weeks ended May 2, 2009 and   May 3, 2008, the Company acquired equipment totaling approximately $1.3   million and $1.5 million, respectively, that was financed through capital   leases. These amounts are excluded from Purchases of property and   equipment in this statement of cash flows.                                  Gander Mountain Company                           Segment Information - Unaudited                                   (In thousands)    Statement of    Operations data:       13 Weeks Ended               13 Weeks Ended                             May 2, 2009                 May 3, 2008                             -----------                 -----------                     Retail    Direct    Total    Retail    Direct    Total                     ------    ------    -----    ------    ------    -----   Sales            $209,870  $17,784  $227,654  $187,993  $19,669  $207,662   Depreciation    and amortization   7,564      255     7,819     7,381      629     8,010   Exit costs and    related charges      285        -       285       776        -       776   Loss from    operations       (14,132)  (1,676)  (15,808)  (18,743)    (588)  (19,331)   Net loss         $(16,360) $(2,285) $(18,645) $(22,816) $(1,629) $(24,445)                                 As of                        As of   Balance Sheet data:      May 2, 2009               January 31, 2009                            ------------              -----------------                     Retail    Direct    Total    Retail    Direct    Total                     ------    ------    -----    ------    ------    -----   Total assets     $534,203  $99,375  $633,578  $517,812  $95,308  $613,120   Inventories       346,654   24,276   370,930   334,868   23,259   358,127   Goodwill and    acquired    intangibles          273   65,722    65,995       400   65,844    66,244   Long term debt    $19,313  $30,000   $49,313   $20,402  $30,000   $50,402  

Gander Mountain Company

CONTACT: Investors, Bob Vold, +1-651-325-4300, or Media, David Ewald,+1-651-290-6276, Cell, +1-612-490-2650, both of Gander Mountain Company

Web Site: http://www.gandermtn.com/

A service of YellowBrix, Inc.