Recreational Equipment, Inc. has selected Lauth
Property Group, LLC to design and construct REI's
eastern region distribution center in Bedford, Pa.

“REI's eastern region distribution center will play a
pivotal role in our ability to continue providing a high
level of customer service and product selection as we
grow, particularly in the east,” said Chris Joyce, director
of operations for REI's eastern region facility. “We set
out to identify a general contractor who has significant
experience in the design and construction of distribution
centers, who offered competitive pricing, and who could
finish the project within our timeline. I'm confident that
we've found that in Lauth, and that they'll be a great

Indianapolis-based Lauth Property Group, which plans to
utilize Pennsylvania subcontractors for the majority of
the project, has constructed and developed more than
12 million square feet of class-A bulk distribution centers
over the past five years, for a wide variety of clients
including Guitar Center, Best Buy, Saint-Gobain and
Target. REI's distribution center will be Lauth's fifth
construction project in Pennsylvania.

REI's new 400,000 square-foot distribution facility,
located in Bedford, Pa., will measure approximately 420
ft. by 950 ft. on a 39.1 acre site at the Bedford County
Business Park II. Ground breaking and construction for
the project will begin this spring, for full-capacity
completion in early 2008. Upon completion, the
distribution center is expected to process approximately
40 percent of REI's total product flow. REI's distribution
system currently supports the company's 82 retail
stores, which last year reported sales of more than $1
billion. The Bedford facility will complement REI's
Sumner, Wash.-based distribution center, and will
employ nearly 350 full-, part-time and seasonal

“We are excited to partner with REI on this important
project as it further demonstrates our ability to
creatively design and deliver complex, specialized
industrial facilities,” said Mike Jones, senior vice
president at Lauth. “Our leadership and expertise will
streamline the entire delivery process for REI.”

Lauth Property Group was selected for the project
because of its proven track record of providing high
quality projects from concept to completion, according to
Robert Hutson, of CB Richard Ellis, the supply chain real
estate group hired by REI to assist the with its contractor
selection process. “Lauth also understands REI's
commitment to environmental stewardship, and will
work closely with us to design an environmentally
sensitive building that's in alignment with our values as
an outdoor company,” added Joyce.

Since 1977, Lauth has been building facilities for clients
to lease or own throughout the U.S. Lauth's years of
solid experience, coupled with completed projects worth
billions, make it a leading national privately held
development and construction firm. Lauth delivers
virtually any type of facility including healthcare,
industrial, office or retail from offices in Indianapolis,
Charlotte, Dallas, Denver, Orlando and Phoenix.