Sleep Number (SNBR) 8-K Statements used in this presentation that relate to future plans, events, financial results or performance are

NASDAQ:  SCSS 

Statements used in this presentation 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 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

“Realizing a Mission”

Bill McLaughlin

Chairman & CEO

NASDAQ:  SCSS 

Select Comfort Profile

Minneapolis, MN based

Founded in 1987; IPO in

1998

Vertically integrated - we

design, make and sell a
complete line of adjustable
firmness beds and
accessories

Self-funded business

model

NASDAQ:  SCSS 

Select Comfort Profile

Industry disruptor

§

Differentiated product

§

Building brand awareness

§

#1 U.S. bed retailer

Advantaged business model

§

Few plants (2)

§

Controlled distribution

§

Nationwide delivery

Management expertise

Focus, mission & culture

NASDAQ:  SCSS 

$0

$1000

2005

2001

Net Sales, in $millions

$(0.50)

$1.00

Earnings Per Share, in $

$0

2005

2001

$1.2B Market Capitalization

Attractive Investment Opportunity

NASDAQ:  SCSS 

Mattress Unit Shipments (in millions)

1985

2005

0

25

Cumulative Average Growth Rates

 Units Revenues

5-Year 1.6% 6.8%

10-Year 2.6% 7.2%

20-Year 2.7% 6.8%

Source: International Sleep Products Association (ISPA) and company information

Positive Industry Dynamics

NASDAQ:  SCSS 

National Market Share

5.5%

Mattress Unit Shipments (in millions)

1985

2005

0

25

Cumulative Average Growth Rates

 Units Revenues

5-Year 1.6% 6.8%

10-Year 2.6% 7.2%

20-Year 2.7% 6.8%

Positive Industry Dynamics

NASDAQ:  SCSS 

Mattress Unit Shipments (in millions)

1985

2005

0

25

Cumulative Average Growth Rates

Units Revenues

5-Year 1.6% 6.8%

 

10-Year 2.6% 7.2%

20-Year2.7% 6.8%

Source: International Sleep Products Association (ISPA)

and company information

< 10%

11 ~ 20%

> 20%

40

9

1

Lead Market Share

National Market Share

5.5%

Positive Industry Dynamics

NASDAQ:  SCSS 

“Get down before you hurt yourself.”

Starts with Differentiated Product/Service

NASDAQ:  SCSS 

Unique, Proprietary Product

Adjustable firmness beds

§

Clinically proven

§

Personalization

§

Health & wellness trend

§

Priced for broad market

acceptance

NASDAQ:  SCSS 

and

Marketing

Manufacturing

Traditional Business Model

NASDAQ:  SCSS 

Marketing

Selling

Manufacturing

Delivery

Service

Referral

Advantaged Business Model

Build-to-order

Controlled distribution

Low inventory,

     just-in-time system

Nationwide delivery

After-sale support

Customer loyalty

NASDAQ:  SCSS 

Board of Directors

Management

Focused Management

NASDAQ:  SCSS 

ISPA CAGR 6.8%

Revenue Growth (in %)

Source: International Sleep Products Association (ISPA)

and company data

2000

1Q06

(10)%

40%

0

20%

2005

2004

2003

2002

2001

Strong Track Record of

Performance

Consistent Strategies 2001-2006

Awareness

Distribution

Innovation

Leverage

Expand

People

&

Systems

NASDAQ:  SCSS 

$0

10%

14%

As %Revenue

$120

2006E

2001

Media Spending

Building Brand Awareness

“Strength in Numbers”

Jim Raabe

Chief Financial Officer

NASDAQ:  SCSS 

Sources of Growth

Same

Store

New

Stores

Retail

Partners

New

Channels/
Geography

Retail Partners - 3%

Other - 4%

Direct - 11%

eCommerce - 5%

2005 Revenue Mix - $691.1M

Multiple Sources of Growth

NASDAQ:  SCSS 

-0.3

2001A

$1.2 B

Net Sales

2005A

Operating Margin %

0

0.9

0.6

0.3

-5%

20%

0

15%

10%

5%

2005 - 2007

2 Points of

Operating

Margin

Gross

margin--

Marketing

expense ~0.5

Selling

expense ~1.0

General &

administrative                     expense ~0.5

Significant Operating Leverage

NASDAQ:  SCSS 

-0.3

2001A

2007E

$1.2 B

Net Sales

2005A

Operating Margin %

0

0.9

0.6

0.3

-5%

0

15%

10%

5%

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

$1.0B

12%

On Track to Realize Milestone

NASDAQ:  SCSS 

Operating Cash

Flows

Capital Expenditures

Free Cash Flows

$0

$100

2006E

2003

2005

2004

2001

$(50)

2002

In $millions

Self Funded Growth

NASDAQ:  SCSS 

Cash and Debt (in $millions)

Shares (in millions)

O/S

Buy-back

Cash

Debt

In $Millions  2004 2005

Cash & Mkt. Sec.  $ 91.7 $112.1

Inventory 20.5     22.0

Receivables       8.6     10.1

Customer Prepays    (9.4)   (14.7)

Payables(26.3)   (31.7)

Debt -- --

Equity   114.3   121.3

In Days

Inventory 32 28

Receivables5    6

Payables        (41)         (37)

Cash Conversion Cycle     (4)                    (3)

Balance Sheet Strength

NASDAQ:  SCSS 

Mission:

To improve lives

through better sleep.

Vision:

To be a leader in

sleep.

NASDAQ:  SCSS 

Unique Investment Opportunity

Positive industry dynamics

Unique, proprietary product

Advantaged business model

Strong experienced leadership team

Strong track record of performance

Self-funded growth

Select Comfort Corporation

Frank Milano - Director, Investor Relations

6105 Trenton Lane North

Minneapolis, MN  55442

Tel: 001-763-551-6908

frank.milano@selectcomfort.com