Sleep Number 8K Regulation FD Disclosure | SNBR 6 Jun 06

Select Comfort Corporation

Minneapolis, MN

Statements used in this presentation that relate to future plans, events, financial results or performance areforward-looking statements that are subject to certain risks and uncertainties including, among others, such
factors as general and industry economic trends; uncertainties arising from global events; the impact on
consumer confidence and consumer shopping patterns from factors such as consumer debt levels and
rising interest rates and energy prices; effectiveness of our advertising and promotional efforts; our ability
to secure suitable retail locations; our ability to attract and retain qualified sales professionals and other key
employees; our ability to successfully expand distribution through independent retailers; consumer
acceptance of our products, product quality, innovation and brand image; our ability to continue to expand
and improve our product line; industry competition; warranty expenses; risks of potential litigation; our
dependence on significant suppliers, and the vulnerability of any suppliers to commodity shortages,
inflationary pressures, labor negotiations, liquidity concerns or other factors; uncertainties related to the
supply of foam used to manufacture our products; rising commodity costs; and increasing government
regulations, including new flammability standards for the bedding industry. Additional information
concerning these and other risks and uncertainties is contained in our filings with the Securities and
Exchange Commission, including our 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 presentation.

Forward Looking Statements

“Strength Behind the Numbers”

Bill McLaughlin

Chairman & CEO

Consumer Trend

Nutrition

+Exercise

+Sleep

Wellness

Mattress Unit Shipments (in millions)

1985

2005

Cumulative Average Growth Rates

Units Revenues

=Health &

5-Year1.6%6.8%

10-Year2.6%7.2%

20-Year2.7%6.8%

Source: International Sleep Products Association (ISPA)

Positive Industry Dynamics

Select Comfort Profile

Industry disruptor

Product & brand

#1 U.S. bed retailer

Advantaged business model

Differentiated product

Few plants (2)

> 90% company controlled

Nationwide delivery

Self-funded growth

Focus, mission & culture

Unique, Proven Product…Differentiated

Personalized comfort

and support

Benefits proven and

appreciated

Durable and

competitive value

and

Traditional Business Model

Advantaged Business Model

Direct-to-consumer

Just-in-time

manufacturing

Low inventory system

Cash efficient

Focused

ISPA CAGR 6.8%

Revenue Growth (in %)

Source: International Sleep Products Association (ISPA)

and company data

2000

1Q06

(10)%

40%

20%

2005

2004

2003

2002

2001

Strong Track Record of Growth

Consistent Strategies 2001-2006

Awareness

Distribution

Innovation

Leverage

Expand

People

Systems

Board of Directors

Management

Management Expertise

10%

14%

As %Revenue

$120

2006E

2001

Media Spending

Strong Culture

Mission-driven

organization

Passion for the

customer

Continuous

improvement

Video in Progress

“Strength in Numbers”

Jim Raabe

Chief Financial Officer

$1.2 B

Net Sales

0.9

0.6

0.3

$1.0B

12%

2001

-0.3

Leadership Goal

< 10%

11 ~ 20%

> 20%

National Market Share

Lead Market Share

2001

$1.2 B

Net Sales

$1.0B

12%

0.9

0.6

0.3

-0.3

Leadership Goal

-0.3

2001A

2007E

$1.2 B

Net Sales

2005A

$1.0B

12%

Operating Margin %

0.9

0.6

0.3

-5%

20%

15%

10%

< 10%

11 ~ 20%

> 20%

National Market Share

Lead Market Share

Leadership Goal

Capital Expenditures (in $millions)

Cash and Debt (in $millions)

Shares (in millions)

Operating Free Cash Flow (in $millions)

O/S

Buy-back

Cash

Debt

Self-Funding Growth and

Strengthening Balance Sheet

Sources of Growth

Long-Term Guidance

Revenue + 15 ~ 20%

Earnings + 20 ~ 25%

2006 Guidance

Revenue at high-end

of L-T target

Post-split earnings

of $0.91 ~ $0.95

Same

Store

New

Stores

Retail

Partners

New

Channels/
Geography

Growth Outlook

Select Comfort Corporation

Minneapolis, MN

Sleep Number (SNBR) 8-KRegulation FD Disclosure