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Tempur-Pedic Comments on Challenging Economic Environment

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Tempur-Pedic International Inc., a leading manufacturer, marketer and distributor of premium mattresses and pillows worldwide, today commented on a challenging economic environment and provided a first quarter financial outlook. The Company noted that first quarter sales to date in the U.S. have been significantly below the Company's plan as a result of economic factors affecting consumer spending. While the first quarter is not yet complete, the Company currently expects total net sales for the first quarter of 2008 will result in a high single digit percentage decrease compared to the prior year. The Company currently expects domestic net sales for the first quarter will result in a percentage decrease in the high teens and international net sales for the first quarter will result in a high single digit percentage increase compared to the prior year. The Company's first quarter operating expense structure was planned and incurred to support a higher sales level. In addition, sales through the U.S. direct channel, the Company's highest margin channel, have been much weaker than planned, which along with other factors will result in a gross margin rate considerably lower than previously anticipated. Therefore, the Company currently expects first quarter earnings per share to be approximately half the amount for the first quarter of 2007. President & CEO H. Thomas Bryant commented, "Based on recent industry data and feedback from retailers, we believe the U.S. mattress industry is experiencing an unprecedented slowdown. Our operating expenses and advertising plans anticipated a stronger retail environment. However, we have reviewed our cost structure and are taking actions to reduce expenses while remaining committed to our business model and focus on premium products." The Company noted that it has limited visibility on the overall impact and anticipated duration of recent economic trends. The Company currently expects to amend financial guidance when it reports first quarter results in April, and its previously announced financial guidance for full year 2008 should no longer be relied upon. The Company currently anticipates its first quarter net debt position will be lower as compared to year-end 2007. About the Company: Tempur-Pedic International Inc. (NYSE:TPX) manufactures and distributes mattresses and pillows made from its proprietary TEMPUR(R) pressure-relieving material. It is the worldwide leader in premium sleep, the fastest growing segment of the estimated $13 billion global mattress market. The Company is focused on developing, manufacturing and marketing advanced sleep surfaces that help improve the quality of life for people around the world. The Company's products are currently sold in over 70 countries under the TEMPUR(R) and Tempur-Pedic(R) brand names. World headquarters for Tempur-Pedic International is in Lexington, KY. For more information, visit http://www.tempurpedic.com/ or call 800-805-3635.

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