Cabela's in Negotiations to Build Destination Retail Store in Richfield, Wisconsin.

SIDNEY, Neb. -- Cabela's Incorporated (NYSE: CAB), the World's Foremost Outfitter(R) of hunting, fishing and outdoor gear, announced today it is in negotiations to build one of its destination retail stores in Richfield, Wisconsin.

Cabela's would locate on an approximately 60-acre site in Washington County generally described as the triangle formed by the intersections of U.S. Highway 41, U.S. Highway 45 and State Highway 145 in the towns of Richfield and Polk. Plans call for approximately 20 acres of the 60-acre site to be developed by additional businesses that could include hotels, restaurants, complementary retail stores or other travel and tourism-related businesses.

"Bringing this store to Richfield has been a major cooperative effort by the towns of Richfield and Polk, Governor Jim Doyle's Administration, Representative Sue Jeskewitz and Washington County among others," said Ken Miller, Chairman of the Washington County Board. "Based on the potential for positive economic development and the number of jobs that would come to Cabela's retail store, we are excited about what the future holds for Richfield, Washington County and the Metro-Milwaukee Region."

If ongoing negotiations for the project conclude successfully, Cabela's expects to open the retail showroom, which could be as large as 165,000-square-feet in size, in late summer or early fall of 2006. This would be the second Cabela's destination retail store in Wisconsin. The company currently operates a smaller retail store and massive distribution center in Prairie du Chien.

The Richfield destination showroom would be built in Cabela's trademark style that evokes the feeling of the outdoors. Cabela's destinations 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.

"We have received incredible support from our partners in the region, as well as the thousands of local Cabela's fans and outdoor enthusiasts in the area, and we look forward to the opportunity to be a part of the community," said Dennis Highby, President and Chief Executive Officer of Cabela's Inc. "With the storied outdoor tradition in Wisconsin and the upper Midwest, we expect the Richfield showroom to be a resounding success and a great addition to Washington County and the greater Milwaukee business landscape."

To operate this new store, Cabela's expects to employ approximately 400 people from Washington County, Milwaukee and the adjacent towns and villages. They will join the Cabela's family of employees who are famous for delivering excellent customer service, living the outdoor lifestyle and possessing an intimate knowledge of outdoor gear. Product offerings would include hunting, fishing, camping, hiking, boating and wildlife-watching gear, as well as outdoor clothing and outdoor-styled gifts and furnishings.

Cabela's currently has 13 retail locations. The newest, a 170,000-square-foot store in Lehi, Utah, opened Aug. 25, 2005. Currently under construction is a 185,000-square-foot store in Rogers, Minn., which will open in October, 2005. Cabela's also has announced plans to open stores in Gonzales, La., and Glendale, Ariz., in 2006; and Reno, Nev., Wheat Ridge, Colo., East Rutherford, N.J., and East Hartford, Conn., in 2007.

Extraordinary in design and showcasing thousands of products from Cabela's world-famous catalog, the retail destination showrooms are known as shopping and tourism destinations, 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 of the Cabela's store would 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 featuring 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.

--Shooting gallery providing fun along with 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.

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

--Beautifully landscaped grounds featuring native trees and plants.

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(R) 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 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

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 of a destination retail store in Richfield, Wisconsin, and its anticipated opening date, and the opening of destination retail stores in other locations, including the planned opening dates for those stores. 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 interruptions; traffic planning around new destination retail stores; adverse weather conditions; adverse economic conditions; the availability of construction materials and labor; 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 "Factors Affecting Future Results" section of the Company's Form 10-K for the fiscal year ended January 1, 2005, which is 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.