Select Comfort Discontinues Distribution Throgh Non-Company Owned Mattress Retailers

Furniture World News

Select Comfort Corporation, one of the nation’s leading bed retailers and creator of the SLEEP NUMBER® bed, disclosed sales performance for fiscal July, ended August 1, 2009. July sales performance represents an improvement in sales trends, a reduction in decline, as compared to late 2008 and the first two quarters of 2009. For orders placed during fiscal July, the company achieved the following sales performance, stated on a year-over-year basis: Percent Change vs. Prior Year Total Company Sales (10%) Retail Sales (7%) Retail Same-Store Sales +1% The company’s positive same-store sales performance in July, driven in part by the closure of more than 50 stores during the year, follows improvement in same-store sales trends within the second quarter, with July same-store sales growth on par with June results. The company’s recent cost restructuring and higher-than-expected sales resulted in positive net income in July. Sales performance during the upcoming Labor Day period is expected to remain a significant determinant of the company’s overall third-quarter financial performance. Moreover, there can be no assurance that sales performance in June and July represents a longer-term trend for the company. Select Comfort also announced that it will discontinue distribution through non-company owned mattress retailers in the contiguous United States during 2009. This change is part of the company’s effort to reignite the Sleep Number brand and continue to advance its distribution strategy. The decision was mutually agreed upon with the company’s retail partners and is not expected to have a significant impact on sales or profit in 2009. The company’s Special Meeting of Shareholders is scheduled for August 27, 2009, at which the shareholders of the company will vote on a proposed sale of 52.3 percent controlling interest to Sterling Partners at a price of $0.70 per share. Details can be found in the Definitive Proxy Statement for the meeting, which was filed with the Securities and Exchange Commission July 28, 2009 and mailed to shareholders beginning July 31, 2009. About Select Comfort Corporation: Founded more than 20 years ago, Select Comfort was ranked the no. 1 bedding retailer in the United States for nine years running1. Based in Minneapolis, the company designs, manufactures, markets and supports a line of adjustable-firmness mattresses featuring air-chamber technology, branded the Sleep Number® bed, as well as foundations and bedding accessories. SELECT COMFORT® products are sold through its approximately 420 company-owned stores located across the United States; select bedding retailers; direct marketing operations; and online at www.sleepnumber.com.