REI CEO Dennis Madsen will retire from the outdoor retailer at the company's annual membership meeting on March 28, 2005, and said he will spend the next 10 months helping to transition the company's leadership to its current chief operating officer, Sally Jewell. Jewell will assume the CEO's position following REI's 2005 annual meeting, according to REI Board Chairman Bill Britt. Britt said Madsen has been in discussions with the board for the past few months about his desire to retire.

“Dennis' discussions with the board have allowed us the opportunity to
thoughtfully consider REI's future leadership, and we are very pleased
that the company has a strong person on its management team ready to
assume the top leadership role. Sally has proven herself as a board
member and as a senior executive in the company. It's a testament to
Dennis' leadership that REI has a strong and capable management team
ready to carry on the positive legacy that he worked so hard to
create,” Britt said.

“I have often said that I have the best job in the world, and I am
extremely proud of the heart, soul and spirit of REI. It's been an
amazing journey from the store stockroom to the CEO's office, and now
it is time to begin the next adventure in my life,” Madsen said. “The
time is ideal to transition leadership of REI as the company is
experiencing phenomenal success. We are hitting on all cylinders, we
are very focused and we are healthier as a business than at any point
in the company's history.”

Madsen, 55, began his career with REI at the age of 17 working as a
stocking clerk at the company's Seattle store. At that time the
Seattle-based cooperative had one store, a mail order catalog, 33
employees and $1.8 million in sales. Over his years with the company
he has worked in many positions. Prior to becoming CEO in 2000, he
served for 13 years as COO, a position in which he oversaw REI's
operating divisions, including the company's retail and direct sales
lines of business, and its marketing and warehousing/distribution
functions.

Today the company employs more than 6,000 nationally, operates 70
retail stores, runs leading web sites REI.com and REI-OUTLET.com, and
has sales of $805 million. In his four-year tenure as CEO, REI has
emerged as the nation's leading outdoor specialty retailer and is
widely regarded as one of the best multi-channel retailers in the
country. REI's commitment to its communities through its annual
corporate giving doubled to nearly $2 million during this period.

In addition to its business success, REI was named as one of the “100
Best Companies to Work For” by Fortune magazine in 2004, jumping from
73rd on the list to 24th, the seventh consecutive time the company has
been named, and its highest listing. A support of REI's core values
and its employees has been a central part of Madsen's time at REI,
which he reinforced in 2003 through personal visits to nearly all of
REI's retail stores.

An avid outdoors person, Madsen is passionate in his pursuit of
outdoor activities, including bicycling, skiing, backpacking, climbing
and sailing. His participation in the outdoors extends to service on
the boards of a number of conservation and outdoor recreation
non-profits, including the national Rails-to-Trails Conservancy Board,
the Washington Wildlife and Recreation Coalition, IslandWood and the
Bicycle Alliance of Washington. He also serves as board president for
the Western Washington University Foundation and is on the board of
the Alaska Air Group, parent company of Alaska and Horizon Airlines.

Madsen said that, in addition to continuing to pursue his many outdoor
interests, he also looks forward to having more time to dedicate to
his many community involvements.

Madsen's successor, Jewell, joined REI as COO in 2000, after serving
as an elected director on the company's board for four years. She
presently oversees REI's customer-facing divisions including retail,
multi-channel programs, direct sales, merchandising and marketing.

Prior to her employment at REI, Jewell's career spanned nearly 20
years in the banking industry, most recently serving as president and
CEO of Washington Mutual's Commercial Banking Group. She too is very
active in a variety of business and community organizations and
causes. Jewell is a founding board member and the immediate past
president for the Mountains to Sound Greenway Trust, which is
dedicated to enhancing the long-term environmental health and economic
vitality of the Interstate 90 corridor from Puget Sound across the
Cascade Mountains. She serves on the University of Washington's Board
of Regents, is a member of the Washington State Governor's
Competitiveness Council and a board member for Premera, parent company
to Premera Blue Cross and other subsidiaries.

Jewell is a lifetime outdoors person and lists among her interests
hiking, biking, mountaineering, sailing, skiing and snowboarding.

“I am humbled and honored to have the opportunity to work with a great
and talented group of people in a great organization,” Jewell said.
“I am going to be spending the next 10 months working closely with
Dennis and learning from him. He has helped shape a wonderful
company, and I want to continue the legacy of success that he's
contributed in his years at REI. I appreciate his ongoing commitment
to ensuring that REI has a smooth and supportive leadership
transition.”