Cabela's in Negotiations to Build Gigantic Destination/Entertainment

Cabela's in Negotiations to Build Gigantic Destination/Entertainment Outdoor Gear Store in Rogers, Minnesota

    Business Editors

    SIDNEY, Neb.--(BUSINESS WIRE)--Jan. 6, 2005--Cabela's Incorporated (NYSE: CAB), the World's Foremost Outfitter of hunting, fishing and outdoor gear, announced today it is in negotiations to build an approximately 185,000-square-foot destination/entertainment outdoor gear store in Rogers, Minnesota. The superstore, which would be the largest outdoor sports store in the state, is planned for opening late this fall or early in the spring of 2006.
    The store, which would be built on approximately 40 acres of a 55-acre site about 10 miles northwest of Minneapolis near the intersection of Interstate 94 and Minnesota Highway 101, would be Cabela's third store in Minnesota. Cabela's opened a 159,000-square-foot store in Owatonna in 1998 and a 59,000-square-foot store in East Grand Forks in 1999.
    "Our comprehensive market research showed that Rogers is an ideal location and such a great opportunity for Cabela's that it just makes sense for us to add a third store in the state," said Cabela's President and Chief Executive Officer Dennis Highby, a native Minnesotan. "With the success of our Owatonna and East Grand Forks stores, Minnesota continues to be a large and growing market for us. This is an opportunity for us to offer more of our world-famous products and customer service to our great customers who live in Minnesota, as well as to the thousands of hunters and anglers who travel to and through Minnesota each year."
    This store would be in the ideal location, in the midst of a concentration of Cabela's customers and adjacent to the well-traveled I-94/Highway 101 intersection, which serves as the gateway to the huge expanse of sporting opportunities in the middle and upper regions of the state - including Mille Lacs and the entire Minnesota lake country famous for its hunting, fishing, water sports, resorts and summer homes, as well as ice-fishing and winter sports when the weather turns cold, Highby said. And that's not to mention the thousands of people who pass through, traveling to the Canadian Shield, with its expanse of lakes, woods and fishing and hunting opportunities, he said.
    To operate the new store, Cabela's would employ as many as 350 to 400 people who will join the Cabela's family of more than 9,300 employees. Employees are expected to come from Rogers and the surrounding area to join Cabela's family of staff members famous for their outdoor lifestyle and intimate knowledge of outdoor products.
    "We know from experience that Minnesotans are hardworking, loyal and dependable employees," Highby said. "They have a solid work ethic and, with their knowledge of and passion for the outdoors, they make a great addition to the Cabela's family."
    "We have been welcomed warmly in Minnesota and feel we are already a part of the state and its culture," Highby said. "We are confident this store will be a huge economic boon to Rogers and the surrounding area."
    Though the site has been identified and a real estate contract inked, there are still several details to work out before the store can become a reality, Highby said. If an agreement is reached, construction is expected to begin as soon as possible.
    The new store will complement the Owatonna and East Grand Forks stores. The Owatonna store continues to grow, serving the southern part of the state as well as those traveling from the Midwest to the Twin Cities and points north. The East Grand Forks store similarly serves its own customer base in western Minnesota, the Dakotas and Canada - as well as those traveling to those areas.
    "Even though the Rogers store will be 90 miles north of our Owatonna store, which is the second largest tourist attraction in Minnesota, our customers have been urging and encouraging us to build a store on the north side of Minneapolis so they can have even more access to Minnesota's largest selection of outdoor equipment and our world-famous customer service," said Mike Callahan, Cabela's Senior Vice President of Retail Operations and Marketing.
    Cabela's currently has 10 retail locations. The newest, a 176,000-square-foot facility in Wheeling, W.Va., opened in August of 2004. Currently under construction are a 230,000-square-foot store in Fort Worth, Texas; a 185,000-square-foot store in Buda, Texas; and a 150,000-square-foot store in Lehi, Utah. Cabela's has also announced plans to build a store in Wheat Ridge, Colo., in 2006, and another in East Rutherford, N.J., in 2007.
    The Rogers store would be built in Cabela's trademark style that evokes the look, feel and atmosphere of the outdoors. Cabela's stores are known as top-notch educational and entertainment attractions, mixing a decor of museum-quality animal displays with colorful dioramas, huge aquariums stocked with native fish and a centerpiece indoor mountain displaying trophy animals interacting in realistic re-creations of their natural habitats.
    Cabela's stores are known as destination stores, drawing customers not only from the local area, but also from hundreds of miles away. Many traveling sportsmen and women are also attracted by the familiar Cabela's script logo and the Company's world-famous reputation for quality merchandise, value and extraordinary customer service.

    Features that will greet visitors to the Cabela's store include:

--	A towering mountain replica, the centerpiece of the store's open showroom, with running waterfalls and streams, a trout pond and trophy animals in re-creations of their distinct habitats. Similar mountains, each called Conservation Mountain, have been built in other Cabela's stores as monuments to wildlife and salutes to the sportsmen and women who support wildlife conservation.
--	Walk-through, freshwater aquarium stocked with fish native to the area.
--	Museum-quality representations of many wild-game species, including an expansive diorama devoted to African game animals.
--	A deli-style restaurant will feature delicious wild-game sandwiches, as well as tamer fare.
--	World-class Gun Library, providing gun collectors and aficionados the opportunity to browse through a collection of examples of the gun-making art.
--	Full-service fly-fishing shop, much like a store within a store, with the products - and helpful, experienced staff - for all fly-casters from novice to expert.
--	Shooting gallery, providing entertainment and the opportunity to learn basic shooting skills in a safe environment.
--	Indoor archery range where archers can test and fine-tune their equipment.
--	Bargain Cave, featuring discount prices on returned and discontinued merchandise.

    About Cabela's Incorporated

    Cabela's Incorporated, headquartered in Sidney, Nebraska, is the nation's largest direct marketer, and a leading specialty retailer, of hunting, fishing, camping and related outdoor merchandise. Since the Company's founding in 1961, Cabela's has grown to become one of the most well-known outdoor recreation brands in the United States, and has long been recognized as the World's Foremost Outfitter(R). Through Cabela's established direct business and its growing number of destination retail stores, it offers a wide and distinctive selection of high-quality outdoor products at competitive prices while providing superior customer service. Cabela's operates as an integrated multi-channel retailer, offering its customers a seamless shopping experience through its catalogs, website and destination retail stores. Cabela's also issues the Cabela's Club(R) VISA credit card through which it offers a related customer loyalty rewards program as a vehicle for strengthening its customer relationships.
    CAUTIONARY STATEMENT FOR THE PURPOSE OF THE SAFE HARBOR PROVISIONS UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
    This press release (other than historical information) contains "forward-looking statements" that are based on the Company's beliefs, assumptions and expectations of future events, taking into account the information currently available to the Company. Forward-looking statements involve risks and uncertainties that may cause the Company's actual results, performance or financial condition to differ materially from the expectations of future results, performance or financial condition that the Company expresses or implies in any forward-looking statements. These risks and uncertainties include, but are not limited to: the ability to negotiate favorable lease and economic development arrangements; expansion into new markets; market saturation due to new destination retail store openings; the rate of growth of general and administrative expenses associated with building a strengthened corporate infrastructure to support the Company's growth initiatives; increasing competition in the outdoor segment of the sporting goods industry; the cost of the Company's products; supply and delivery interruptions; adverse weather conditions; fluctuations in operating results; adverse economic conditions; increased fuel prices; labor shortages or increased labor costs; changes in consumer preferences and demographic trends; increased government regulation; inadequate protection of the Company's intellectual property; other factors that the Company may not have currently identified or quantified; and other risks, relevant factors and uncertainties identified in the "Risk Factors" section of the Company's most recently filed prospectus, which is available at the Company's website at www.cabelas.com and the SEC's website at www.sec.gov. The words "believe," "may," "should," "anticipate," "estimate," "expect," "intend," "objective," "seek," "plan," "will" and similar statements are intended to identify forward-looking statements. Given the risks and uncertainties surrounding forward-looking statements, you should not place undue reliance on these statements. The Company's forward-looking statements speak only as of the date they are made. Other than as required by law, the Company undertakes no obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise.

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CONTACT: Cabela's Incorporated Joe Arterburn/Corporate Communications Manager 308-255-1244 Chris Gay/Treasurer 308-255-2905 or Investor/Media Contact: Integrated Corporate Relations Investor: Chad A. Jacobs Media: Mike Fox/Megan McDonnell 203-222-9013

KEYWORD: NEBRASKA MINNESOTA INDUSTRY KEYWORD: RETAIL SPORTS PRODUCT SOURCE: Cabela's Incorporated

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