MINNEAPOLIS--(BUSINESS WIRE)--May 22, 2003



Select Comfort Corporation (Nasdaq:SCSS), the nation's leading bed retailer and creator of the Sleep Number(R) bed, today announced results of its annual meeting of shareholders held Wednesday, May 14.



In his presentation to shareholders, Select Comfort president and chief executive officer Bill McLaughlin, said, "2002 was a successful year by any measure. We achieved revenue growth of 28 percent, profit of $21 million and generated $28 million in cash flow from operations. Given the difficult economic environment and global uncertainty, we're especially proud of our success."



McLaughlin stressed that while 2002 was a strong year, he is particularly pleased that the company is so well positioned for long-term, sustainable growth. "We have a differentiated product, an advantaged business model, proven growth programs, demonstrated leadership and positive consumer trends," McLaughlin said.



Noel Schenker, senior vice president of marketing and new business development, introduced the company's five new Sleep Number(R) television commercials, and showed Select Comfort's new national cable advertising featuring actress Lindsay Wagner. "We're investing $52 million in advertising this year, up from just under $40 million in 2002 and $29 million in 2001," she said. "We are now in the third year of the Sleep Number(R) campaign in lead advertising markets, where we continue to achieve double-digit sales gains and increased levels of brand awareness. With national awareness of our brand and product still below five percent, we have significant growth opportunity ahead as we expand our media investment and geographies."



Keith Spurgeon, senior vice president of sales, reported on the company's retail expansion plans. "In 2003, we plan to open at least 25 new stores and test non-mall stores in selected markets. We also plan to remodel one-third of our stores to reflect the Sleep Number(R) brand and imagery."



In the formal business portion of the meeting, shareholders elected Patrick Hopf, Trudy Rautio and Ervin Shames to new three-year terms on the board of directors and ratified the appointment of KPMG LLP as independent auditors for Select Comfort's current fiscal year.



Founded in 1987, Select Comfort Corporation is the nation's leading bed retailer (1), holding 26 U.S. issued or pending patents for its personalized sleep products. The company designs, manufactures and markets a line of adjustable-firmness mattresses featuring air-chamber technology, branded the Sleep Number(R) bed, as well as foundations and sleep accessories. Select Comfort's products are sold through its 327 retail stores located nationwide, including 13 leased departments in Bed Bath & Beyond stores; through selected bedding retailers; through its national direct marketing operations; and on the Internet at www.selectcomfort.com.



Statements used in this press release that relate to future plans, events, financial results or performance are forward-looking statements that are subject to certain risks and uncertainties including, among others, such factors as general and industry economic trends, uncertainties arising from war and other global events, consumer confidence, effectiveness of our advertising and promotional efforts, acceptance of our products and sleep technology, industry competition, warranty expenses, our dependence on significant suppliers, including Conseco Finance for extension of consumer credit, and the vulnerability of any suppliers to recessionary pressures, labor negotiations, liquidity concerns or other factors, as well as the risk factors outlined from time to time in the company's filings with the SEC, including the company's Annual Report on Form 10-K and other periodic reports filed with the SEC.



The company has no obligation to publicly update or revise any of the forward-looking statements that may be in this news release.



(1) Top 25 Bedding Retailers, Furniture Today, August 12, 2002

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