Gander Mountain, Inc.
                P.O. Box 128, Highway W
               Wilmot, Wisconsin  53192
                Phone:  (414) 862-2331
                           
AT THE COMPANY:                  AT THE FINANCIAL
RELATIONS BOARD:
Kenneth C. Bloom                 Michael Rosenbaum
Executive VP/                    875 N. Michigan Ave., Chicago, IL  60611
Chief Financial Officer          (312) 266-7800
(414) 862-3302                   

FOR IMMEDIATE RELEASE

    GANDER MOUNTAIN REORGANIZATION PLAN CLEARED BY
                        COURT;
   COMMENT PERIOD BEGINS FOR SHAREHOLDERS, CREDITORS
     
     Wilmot, Wisconsin, December 17, 1996 -- Gander
Mountain, Inc. (Nasdaq Bulletin Board: GNDR), has
received clearance from the U.S. Bankruptcy Court in
Milwaukee  to send its reorganization plan, ballots and
disclosure statement to creditors and shareholders for
review and approval, the company announced today.
     
     Mailing of the materials to parties in the
bankruptcy proceedings begins a review and comment
period of approximately one month.  Under the timetable
approved by the court, objections to confirmation of
the plan must be received prior to 4 p.m., central
standard time, on Monday, January 13, 1997.  The
deadline for receipt of ballots is 4 p.m., central
standard time, on Thursday, January 16, 1997.  A
hearing on confirmation of the plan has been scheduled
for 9:30 a.m., central standard time, on Thursday,
January 23, 1997, in Milwaukee, according to Gander
Mountain.
     
     Under the terms of the reorganization plan, the
company's 12 retail stores and substantially all
related assets of the business will be transferred to
Holiday Companies which will pay a purchase price equal
to all secured debt, administrative expenses of the
bankruptcy (including post-petition liabilities),
priority claims, reasonable post-confirmation expenses,
plus $19,500,000.  $18.5 million will be distributed
among unsecured creditors, $500,000 paid pro rata to
Gander Mountain preferred shareholders, and $500,000
paid pro rata to holders of Gander Mountain common
stock.
     
     If, however, the holders of preferred stock oppose
the Plan and it cannot be confirmed by the Court
because of this opposition, there will be no
distribution to preferred and common shareholders and
the amount available to unsecured creditors will
increase to $19 million.  Unsecured claims of $1,000 or
less, and claims that creditors reduce voluntarily to
$1,000, will receive a one-time payment of 80% of their
claims out of the funds available to unsecured
creditors.  After this payment, the balance will be
distributed pro rata to other unsecured creditors with
allowed claims.
     
     Gander Mountain, Inc. is a customer-oriented
specialty retailer serving the outdoor recreation
market.  The company is recognized as a leader in
providing functional outerwear, footwear and equipment
for the hunting, fishing and camping enthusiast.
     
  For further information on Gander Mountain free of
                    charge via fax,
     dial 1-800-PRO-INFO and enter the number 001.
                           
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