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The Select Comfort Story
Select Comfort (NASDAQ: SCSS) was founded by an inventor and former innerspring mattress maker who simply wanted a better night's sleep. He created a mattress that uses air chamber technology, the best medium for providing comfort and support, with the unique attribute of personalized adjustability.

Founded in 1987, the Minneapolis-based company delivers net sales of $691 million annually, and has 30 U.S.-issued or pending patents. The company was recently ranked by Furniture/Today as the number-one bedding retailer in the nation for the seventh consecutive year. In addition to the company's headquarters in Minnesota, Select Comfort also has manufacturing and distribution facilities in South Carolina and Utah and 428 showroom stores across the USA. The company employs more than 2,500 people nationally.

Products: There are five models of The Sleep Number Bed by Select Comfort™. Mattresses are available in standard Twin, Full, Queen, Expanded Queen, King, California King and Grand King® sizes. In addition, the company sells pillows, blankets, bedding, mattress pads and other bedding accessories.

Studies show that The Sleep Number Bed by Select Comfort relieves back pain and improves sleep quality. More than 50,000 customers have provided testimonials, many saying that they are sleeping better on their Sleep Number bed than on their old innerspring mattress.

Partnerships: Select Comfort has been the "Official Bed Provider" for Ronald McDonald House Charities® since January 2001. The company has donated more than 3,700 Sleep Number beds to the 156 Ronald McDonald Houses in the U.S. to date. In addition to the beds, Select Comfort, along with its employees and vendor partners, has donated more than 5,500 employee volunteer hours and $640,000 in contributions from employee payroll deductions, retail promotions and other fundraising activities. The total value of these goods, services and cash contributions exceeds $3.2 million.

Select Comfort also has an exclusive partnership with Radisson Hotels and Resorts, which was announced in May 2004. The Radisson Sleep Number bed can now be found at Radisson properties in locations throughout the U.S., Canada and the Caribbean.

Additionally, Select Comfort has a partnership with Winnebago Industries, which provides a more comfortable ride for its motor home owners by offering Sleep Number beds on selected Winnebago Industries models.

Distribution: The Sleep Number bed and accessories are available nationwide at 428 Select Comfort retail stores, at select furniture retailers (in the U.S. and Canada), through the company's national direct marketing operations (800-535-BEDS), and online at www.selectcomfort.com.

Message from our CEO Not that long ago, I too was evaluating a career change. It was a difficult decision to leave behind the safely of a great company, good friends and mentors. However, in early 2000, I joined Select Comfort because I saw a unique opportunity. Select Comfort has exceeded expectations, and the opportunities ahead are exciting. We are revolutionizing an industry- improving lives through personalized comfort and SLEEP NUMBER beds. Others have changed industries- CDs changed they way we listen to music and wireless phones transformed the way we communicate. These opportunities are infrequent and we are fortunate to have the opportunity that we have a Select Comfort. If you have a pioneer sprit and possess skills to support our large-scale growth potential, then you should consider joining our team. Select Comfort strives to maintain a unique culture, and much of our motivation comes from helping others. We are building a “Select Force,” a lean organization of sales experts and business leaders, dedicated to customer satisfaction and to building a profitable, fast-growing company. If you are skilled, passionate and interested in working hard to revolutionize how the world sleeps, then I look forward to having you join our team. Select Comfort is all I was looking for in a career and more. Bill McLaughlin, Sleep Number 55

In a recent survey of our employees, they told us… “The potential is even greater than I expected.” Retail Sales ‘The company is focused and passionate about providing our customers with products which provide an excellent sleep experience.” Operations/Plant “I have found the opportunities to lead, contribute and grow with the organization to be everything I was looking for and more.” Home Delivery “This is a company with tremendous amount of potential and all the ingredients are here for a wildly successful organization along with fulfilling my objectives.” Home Office “People here are great. It makes working here fun.” Customer Service “I love to see the customers come through the door who just rave about the beds to other customers.” Retail Sales “My position in order fulfillment is both physically and mentally challenging which along with good leadership and teamwork makes for an enjoyable position.” Operations/Plant “The people in all departments are very focused on achieving the company goals and growing the business.” Home Office

Diversity in our employee base is important to our long-term success. Diversity helps us work effectively to meet our consumer's needs. Diversity allows us to find unique solutions and process improvements that benefit our consumers, company, and employees.

Select Comfort is also committed to increasing in an effort to better reflect our consumer base and the communities in which we operate. Leaders and employees that succeed at Select Comfort will demonstrate their ability to cultivate and leverage diversity in our organization.

EMPLOYEE BENEFITS
There are many advantages to being a Select Comfort employee. Everyone who works here is team focused and works hard. Therefore, we reward them with a generous compensation and benefits package. Our extensive full-time benefits* include:

• 401(k) Plan
• Employee Stock Purchase Plan
• Health Insurance
• Dental Insurance
• Vision Plan
• Tuition Reimbursement Plan
• Paid Time Off
• Life Insurance (Company Paid)
• AD&D Insurance(Company Paid)
• Supplemental Life and AD&D Insurance (available at group rates)
• Short& Long Term Disability(Company Paid)
• Travel Accident Insurance (Company Paid)
• Flexible Spending Accounts
• Employee Purchase Plan (If you sleep better, you feel better, you work better!)
• Employee Recognition Programs (Incentive for a job well done)
• University of Select Comfort (We are a learning organization that provides development opportunities)

*Actual benefits are defined in the individual plan documents. These are just the material benefits. There are a lot of less tangible, highly rewarding reasons to be a Select Comfort employee.