After completing a review of its organizational structure, the Company determined to reduce staffing levels in selected areas. The Company expects approximately two-thirds of the reduction to come from not filling open positions and one-third of the reduction to come from job eliminations. The Company is offering severance payments and outplacement assistance to affected employees.

"This workforce reduction is an effort to reduce costs and improve efficiencies," said Dennis Highby, Cabela's President and Chief Executive Officer. "While this was a difficult and challenging decision, I believe it was necessary given the macroeconomic environment we are facing. We don't expect these changes to impact customer service."

As always, the Company expects to hire to support strategic initiatives of the organization while making adjustments in workforce as necessary at its retail stores, call centers, and distribution centers to accommodate business demand.

About Cabela's Incorporated

Cabela's Incorporated, headquartered in Sidney, Nebraska, is a leading specialty retailer, and the world's largest direct marketer, 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 growing number of retail stores and its well-established direct business, 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. Cabela's stock is traded on the New York Stock Exchange under the symbol "CAB".

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 statement regarding the impact of the reduction in workforce on customer service and the Company's statement regarding hiring to support strategic initiatives of the organization. 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 strength of the economy; the level of discretionary consumer spending; changes in consumer preferences and demographic trends; changes in the credit markets or the availability of credit; the Company's ability to successfully execute its multi-channel strategy; the ability to negotiate favorable purchase, lease, and/or economic development arrangements for new retail store locations; expansion into new markets; market saturation due to new retail store openings; increasing competition in the outdoor segment of the sporting goods industry; the cost of the Company's products; trade restrictions; political or financial instability in countries where the goods the Company sells are manufactured; adverse fluctuations in foreign currencies; increases in postage rates or paper and printing costs; supply and delivery shortages or interruptions caused by system changes or other factors; adverse or unseasonal weather conditions; fluctuations in operating results; the cost of fuel increasing; road construction around the Company's retail stores; labor shortages or increased labor costs; increased government regulation; inadequate protection of the Company's intellectual property; the Company's ability to protect its brand and reputation; changes in accounting rules applicable to securitization transactions; decreased interchange fees received by the Company's financial services business as a result of credit card industry litigation; 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 29, 2007, and in Part II, Item 1A of the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended March 29, 2008), 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.

SOURCE: Cabela's Incorporated

Cabela's Incorporated Media: Joe Arterburn, 308-255-1204 or Investor: Chris Gay, 308-255-2905