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Press Releases Tuesday, December 20, 2005   
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REI Announces Plans for Second Distribution Center East Coast Facility to be Located in Bedford, Pa.

SEATTLE -- December 20, 2005 -- In an effort to support its future retail growth with an expanded presence in the eastern U.S., Recreational Equipment, Inc. (REI), a national retail co- op providing quality outdoor gear and apparel, today announced plans for a second distribution center to be located in Bedford, Pa.

REI selected Bedford as the site of its second distribution center following a comprehensive search, which included consideration of multiple sites in the mid- Atlantic region the general transit corridor determined by REI to be best for its distribution needs. "Local, county and state officials responded very positively to REI locating in Bedford, which has a proven infrastructure for distribution facilities and has great proximity to our east coast retail locations," said Dave Presley, REI vice president of distribution and logistics.

Construction of the planned 400,000 square-foot facility, to be located on approximately 35-acres in the Bedford County Business Park, will begin next year for full- capacity completion in early 2008, and will employ nearly 350 full-, part-time and seasonal employees. Upon completion, the distribution center is expected to process approximately 40 percent of REI`s total product flow. REI`s distribution system supports the company`s direct sales, 82 retail stores, and last year reported sales of $887 million. The Bedford facility will complement REI`s Sumner, Wash.-based distribution center, which was recently expanded to nearly 700,000 square feet to meet the company`s immediate inventory and distribution needs.

"As we grow and expand our retail and direct sales presence, so has our need to expand our distribution capacity," said Presley. "Our distribution facility in the eastern region will allow us to continue to provide the high level of customer service and wide product selection that REI is known for, and will prepare us for future growth, particularly in the east."

REI has had an east coast retail presence since 1987 when it opened stores in Reading, Mass. and College Park, Md. Most recently REI opened stores in Pittsburgh and Raleigh, and announced plans for new stores in Greensboro, N.C.; Pineville, N.C.; and West Hartford, Conn. Currently REI has 18 retail stores located east of the Mississippi River that serve nearly 750,000 of REI`s 2.5 million active members.

REI is known for its unique blend of accessible expertise, interactive shopping experience and quality gear for camping, climbing, cycling, hiking, outdoor fitness, paddling and snow sports. The new distribution center, which will supply REI stores with everything from kayaks to carabiners, is expected to better serve REI`s growing membership in the east with more frequent product replenishment, decreased delivery times and faster turnaround time for REI`s store pickup service which allows customers to order online and pick up their purchases at the retail store of their choosing without incurring shipping charges.

At a gathering today to announce REI`s decision, Presley praised the governor and Pennsylvania`s economic development team for their efforts in attracting and welcoming REI to area. "The state`s support and understanding of our business needs has been truly amazing, and we look forward to becoming an active member of the community," added Presley.

"REI`s decision to locate an east coast distribution facility in Pennsylvania is great news for Bedford and the entire region," Gov. Edward G. Rendell said. "REI could have gone anywhere, but looked at what we offered and picked Pennsylvania for this investment. We continue to use our resources to help companies like REI grow and create new opportunities. At the same time, we are investing in our people and in the revitalization of our communities. This is a tribute to our economic development team."

"Bedford County and REI are an excellent fit. We share a service-oriented work ethic, a passion for outdoor recreation and a commitment to environmental and historical preservation," added Bette Slayton, president of the Bedford County Development Association. "REI, well known as one of the country`s best employers and a strong supporter of communities in which it does business, will also bring significant new job growth and capital investment to our region."

REI, which has been named to FORTUNE magazine`s "100 Best Companies to Work For in America" list for eight consecutive years, announced in October that it will begin providing healthcare benefits to all part-time and seasonal employees effective Jan. 1, Other benefits offered to REI employees include flexible scheduling, gear discounts, free gear rentals, tuition reimbursement, performance-based incentive program and gear grants to support employees` personal outdoor adventure challenges.

REI is an outdoor retail co-op dedicated to inspiring, educating and outfitting its more than two million active members and the community for a lifetime of outdoor adventure. Founded in 1938 by a group of Pacific Northwest mountaineers seeking quality equipment, REI operates retail stores nationwide, two online stores REI.com and REI-OUTLET.com and an adventure travel company, REI Adventures. REI offers products from all of the top brands for human-powered outdoor recreation, including its own line of award-winning gear and apparel. While anyone may join or shop at REI, members pay a one-time $15 fee and receive a share in the company`s profits through an annual member refund based on their purchases. As an active supporter of communities in which it does business, REI is committed to promoting environmental stewardship and increasing access to outdoor recreation through education, gear donations and financial contributions.

CONTACTS:
Randy Hurlow, Public Relations Manager
Recreational Equipment, Inc.
253/395-5877 (office)
206/778-5523 (cell)
rhurlow@rei.com

Penny Kline, Deputy Press Secretary
PA Dept. of Community & Economic Development
717/214-5335 (office)
pekline@state.pa.us

Bette Slayton, President
Bedford County Development Association
814/623-4816 (office)
slayton@bcda.org
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