Cabela's Finalizes Negotiations with State for a Hammond, Ind., Retail Store.

SIDNEY, Neb. -- Cabela's Incorporated (NYSE: CAB), the World's Foremost Outfitter(R) of hunting, fishing and outdoor gear, announced today it has finalized negotiations with the State of Indiana's Economic Development Council (IEDC) to bring a Cabela's retail superstore to its long-anticipated Hammond, Ind., location.

The approximately 185,000 square-foot retail showroom could be completed by late 2007 or early 2008, and will be Cabela's first in Indiana.

The new retail store will be located at the site of the former Woodmar Country Club at the intersection of Interstates 80 and 94 and Indianapolis Boulevard. The site, which Cabela's purchased in October 2005, encompasses approximately 100 acres and will eventually include additional retail and other new development around Cabela's store site. Additional development around Cabela's stores typically includes hotels, restaurants and complementary retail stores.

"I am excited to finally announce we've reached agreement on a financial package for the Hammond location and that we're moving the Hammond project forward," said Dennis Highby, Cabela's President and Chief Executive Officer. "The city leadership, including Mayor McDermott and the people of Hammond, have been great supporters of the project over the past year. We're also very appreciative of Governor Mitch Daniels and the Indiana Economic Development Corporation's help with the project as well. We look forward to bringing the unique Cabela's retail store experience to the hundreds of thousands of outdoorsmen and women in the region who, like us, are passionate about the outdoors."

The IEDC and the Indiana Department of Transportation (INDOT) worked together to assist Cabela's and Hammond by providing support for road improvements necessary to allow access to the proposed site and to accommodate the additional development that the project is expected to attract.

"This is a good outcome for Cabela's, Hammond and our taxpayers. It took some time to get to this day, but we're thrilled about this new facility. It's important not only for commerce but for tourism in the region," said Daniels.

The Hammond Cabela's would be a high-volume, large-format store, built in Cabela's trademark style that evokes the feeling 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.

"I appreciate Governor Daniel's and the IEDC's assistance in making this project become a reality," said Hammond Mayor Tom McDermott. "The large investment being made and the number of jobs that will be created by this project will dramatically improve the economy in Hammond and Northwest Indiana as a region. This is truly a day for celebration in northwest Indiana."

To operate this new store, Cabela's expects to employ approximately 400 people, most from the surrounding area. They will join the Cabela's family of employees who are famous for delivering excellent customer service, living the outdoor lifestyle and possessing an extensive knowledge of the outdoors and outdoor gear. Product offerings will include hunting, fishing, camping, hiking, boating and other outdoor gear, as well as outdoor clothing and outdoors-styled gifts and furnishings.

Cabela's currently has 14 retail locations nationwide. The newest, in Rogers, Minn., opened Oct. 14, 2005. Cabela's also has announced plans to open stores in Boise, Idaho; La Vista, Neb.; Glendale, Ariz.; and Richfield, Wis., in 2006; and Hazelwood, Mo.; Gonzales, La.; Reno, Nev.; Wheat Ridge, Colo.; East Rutherford, N.J.; East Hartford, Conn.; Hoffman Estates, Ill., and Adairsville, Ga., in 2007. A Montreal, Quebec, store is scheduled for early 2008.

Extraordinary in design and showcasing thousands of products from Cabela's world-famous catalogs, the stores are known as shopping and tourism destinations, drawing customers not only from the local area, but also from hundreds of miles away as well as from across the nation. 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 of the Cabela's Hammond store will 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.

--A gigantic freshwater aquarium stocked with fish native to the area.

--Museum-quality representations of many wild-game species.

--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 fine examples of the gun-making art.

--Indoor archery range where archers can test and fine-tune their equipment.

--A boat showroom and maintenance center.

--Bargain Cave, featuring discount prices on returned and discontinued merchandise.

--A sun-drenched atrium interior featuring authentic fieldstone accents and wood furnishings.

About Cabela's Incorporated

Cabela's Incorporated, headquartered in Sidney, Nebraska, is the world'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(R) has grown to become one of the most well-known outdoor recreation brands in the world, and has long been recognized as the World's Foremost Outfitter(R). Through Cabela's well-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 also issues the Cabela's Club(R) VISA credit card, which serves as its primary customer loyalty rewards program.

Caution Concerning Forward-Looking Statements

Statements in this press release that are not historical or current fact are "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. Such forward-looking statements include, but are not limited to, the Company's statements regarding the construction and anticipated opening date of a destination retail store in Hammond, Ind., and the construction and planned opening dates of destination retail stores in other locations. Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from the expectations of future results 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 purchase, lease, and/or economic development arrangements for destination retail store locations; increasing competition in the outdoor segment of the sporting goods industry; supply and delivery shortages or interruptions; delays in traffic planning and/or road construction around new destination retail stores; the ability to secure required governmental permits and approvals, adverse weather conditions; adverse economic conditions causing a decline in discretionary consumer spending; labor shortages or increased labor costs; the cost of fuel increasing; increased government regulation; other factors that the Company may not have currently identified or quantified; and other risks, relevant factors and uncertainties identified in the Company's filings with the SEC (including the information set forth in the "Risk Factors" section of the Company's Form 10-K for the fiscal year ended December 31, 2005), which filings are available at the Company's website at www.cabelas.com and the SEC's website at www.sec.gov. 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.