Gander Mountain Company second quarter, sales increased 18.6% to $216.5 million and comparable store sales increased 4.2% 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 48 cents per share, compared to a net loss of $7.6 million, or 53 cents 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.
                           Gander Mountain Company


                     Statements of Operations - Unaudited


                    (In thousands, except per share data)



                                         13 Weeks Ended      26 Weeks Ended



                                      August 4,  July 29, August 4,  July 29,


                                         2007      2006      2007      2006


    Sales                              $216,511  $182,482  $392,260  $338,062


    Cost of goods sold                  164,975   138,408   306,848   266,996


    Gross profit                         51,536    44,074    85,412    71,066



    Operating expenses:


       Store operating expenses          43,728    36,472    84,279    72,327


       General and administrative


        expenses                         11,703     9,606    23,153    18,959


       Pre-opening expenses               1,234       708     1,964     1,473


    Loss from operations                 (5,129)   (2,712)  (23,984)  (21,693)


    Interest expense, net                 4,530     4,847     8,506     8,833


    Loss before income taxes             (9,659)   (7,559)  (32,490)  (30,526)


    Income tax provision                      -         -         -         -


    Net loss                            $(9,659)  $(7,559) $(32,490) $(30,526)





    Basic and diluted loss per share     $(0.48)   $(0.53)   $(1.61)   $(2.14)



    Weighted average common shares


     outstanding                         20,312    14,293    20,201    14,289