L.L.Bean Inc. Reports 2007 Net Sales Results

FREEPORT, Maine -- L.L.Bean announced today a positive close to its 2007 fiscal year, bucking retail industry trends that showed disappointing results for many retailers. On the basis of the business performance for 2007 the company announced its intent to pay performance bonuses to employees.
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FREEPORT, Maine -- L.L.Bean announced today a positive close to its 2007 fiscal year, bucking retail industry trends that showed disappointing results for many retailers. On the basis of the business performance for 2007 the company announced its intent to pay performance bonuses to employees.

"L.L.Bean has performed very well in a challenging retail environment, ending the year with a 5.5% increase in net sales over the prior year," said Chris McCormick, L.L.Bean's President and CEO. "It was a solid team effort deserving of recognition for our employees for their outstanding performance, in a year that we faced stiff headwinds as a result of a weakening economy."

For the 2007 fiscal year ending February 24, 2008, L.L.Bean reported annual net sales of $1.62 billion, a 5.5% increase over 2006. The company also announced that its Board of Directors approved a cash award of 5% of annual pay to eligible employees, a payout of approximately $18.5 million. An additional $10 million will be allocated to the pension plan, keeping the plan fully funded.

"It's a well deserved bonus," said Leon Gorman, L.L.Bean's Chairman of the Board. "On behalf of the Board of Directors I congratulate L.L.Bean employees on their outstanding performance this year. We have a great team in place and are pleased to be in the position of rewarding Bean employees for their achievements."

Chris McCormick added further, "We had a very good spring season, somewhat soft September and October with unseasonably warm weather, and a very strong December which came in 20% over 2006 and enabled us to make up a lot of lost ground," he said. "Our employees really pulled together to manage a high volume peak, while delivering excellent customer service."

2007 L.L.Bean Year in Review
-- 2007 company net sales, a record $1.62 billion -- 5.5% increase over
2006.
-- The company opened several new store fronts in 2007:
-- Connecticut, Massachusetts and New York State, and a new 30,000
square foot Hunt/Fish store addition to the Flagship store in
Freeport, Maine.
-- Two new stores in Japan, bringing the total to 15.
-- A 350,000-foot expansion of the company's Order Fulfillment Center
opened in early Summer 2007.
-- The National Retail Federation / American Express annual Customer
Service Survey rated L.L.Bean number 1 in customer service.
-- Construction work has commenced on Freeport Village Station, a retail
complex and parking structure in lower Freeport village, developed with
partner Berensen Associates, scheduled for late 2008 opening and
completion in 2009.
-- Received The Maine Chapter of the U.S. Green Building Council's 2008
Green Building Leadership Awards for commitment to greening L.L.Bean
facilities.
-- A new Data Center, built to LEED standards, will be completed in June
2008.
-- L.L.Bean's website sales grew 14% over 2006, with almost 81 million
visitors to the site.
-- Contributed $2.6 million toward conservation, recreation, health &
human services, education and the arts, including the development of
the Leon Gorman Park in Freeport.
-- Contributed $250,000 to Keep ME Warm, a public-private collaboration
aimed to help Mainers who are most in need cope with the rising cost of
fuel.
-- L.L.Bean Manufacturing began manufacturing the Bean Boot bottoms in
Maine for the first time ever.

2008 and beyond

L.L.Bean will continue to be on the move in 2008:
-- L.L.Bean is on track to open three new stores in 2008 in Chicago, New
York State, and Pennsylvania.
-- Additional expansion in International markets is actively underway with
further announcements expected in 2008.
-- Further announcements are expected around company plans to open an
Outdoor Adventure Center which will build upon its outdoor recreation
schools in Freeport.

Founded in 1912 by Leon Leonwood Bean, L.L.Bean Inc. began as a one-room operation selling a single product, the Maine Hunting Shoe. In 1967 L.L.'s grandson, Leon Gorman, took over as company president and led the company's transition to becoming the preeminent outdoor retail company it is today. With the company's modern day success as his legacy, Mr. Gorman assumed the role of Chairman of the Board in 2001, passing company leadership to Chris McCormick, the first non-family member ever to hold the position.

While its business has grown and changed significantly over the years, L.L.Bean still upholds the values of its founder and continues his dedication to quality, customer service and a love of the outdoors. In the past 5 years L.L.Bean has donated over $6 million toward conservation and land stewardship. The 200,000 sq. ft. L.L.Bean Retail Store campus in Freeport, ME, is open 24 hours a day, 365 days a year and welcomes more than 3 million visitors every year.

A privately held company, L.L.Bean does not publicly disclose financials.

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