ST. PAUL, Minn., April 15, 2008 — Gander Mountain Company (Nasdaq: GMTN), the nation’s largest retail network of stores for hunting, fishing, boating, camping, marine and outdoor lifestyle products and services, today reported sales of $317.6 million for the quarter ended February 2, 2008, a decrease of 2.8 percent over the prior year period.  Comparable store sales decreased 11.9 percent in the fourth quarter.

Net income for the fourth quarter was $5.8 million, or $0.25 per share, compared to net income of $15.3 million, or $0.85 per share, in the fourth quarter of fiscal 2006.  The current period earnings include a loss of $1.2 million, reflecting two months of seasonal operating results at Overton’s Inc., which was acquired by Gander Mountain in December 2007.

For the fiscal year, the company reported sales of $969.4 million, an increase of 6.4 percent over the prior year.  Comparable store sales declined 5.4 percent. The company reported a net loss for the 52-week period of $31.8 million, or $1.52 per share, compared with a net loss of $13.2 million, or $0.88 per share for the prior fiscal year.

Per share information for the most recent fourth quarter and full fiscal year reflect the issuance of an additional 4,067,797 shares of common stock in December 2007, the proceeds of which were used to partially fund the Overton's acquisition.

"As anticipated, fourth quarter results reflected difficult operating conditions, both in the broad economy and in our industry.  These conditions have eased slightly in the first quarter,” said Mark Baker, president and CEO.  “We expect the positive seasonal impact of Overton’s to emerge in the first half of fiscal 2008 as we expand our presence in the direct marketing arena.”

“We will open five stores during the year, replacing three smaller stores and adding to our southern store count,” added Baker.  “The combination of cost-saving initiatives, growth in direct marketing and fewer store openings will position Gander Mountain for improved performance in fiscal 2008.”

Fourth Quarter and Fiscal 2007 Financials:

·    Gross profit increased 7.1 percent to $240.8 million for the 2007 fiscal year.  As a percent of sales, gross profit increased 18 basis points to 24.8 percent, reflecting general improvement in pricing structure, improved clearance management, benefits of scale, and higher penetration of owned-brand merchandise.

·     During the quarter, Gander Mountain closed two unprofitable stores and took cost reduction actions that will benefit 2008.  The company incurred store closing and asset impairment charges, severance costs, and adjustments to the service model in the PowerSports category, resulting in charges of $4.3 million for the quarter and $6.5 million for the year.

·     Selling, general and administrative expenses (SG&A) for the fiscal year 2007 increased 16 percent to $241 million, driven by new store growth and including operational expenses related to Overton’s. As a percent of sales, SG&A increased from 22.8 percent in fiscal 2006 to 24.8 percent in the 2007 comparable period, primarily as a result of the decrease in comparable store sales.  Gander Mountain has historically reported store operating expenses and general and administrative expenses independently.  As a result of the Overton’s acquisition, the company will report SG&A going forward.

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 http://www.GanderMountain.com for approximately 90 days. The transcript will be posted on the site as well.

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 112 conveniently located Gander Mountain outdoor lifestyle stores in 23 states. For the nearest store location call 800-252-5993 or visit www.gandermountain.com. Gander Mountain is also the parent company of Overton's (www.overtons.com), a leading catalog and Internet-based retailer of products for boating and other water sports enthusiasts.