Mattress Giant Announces Transfer of Ownership to Funds Controlled by Freeman Spogli & Co.

Addison, TX, August 3, 2006 - Addison, Texas-based Mattress Giant announced the transfer of ownership to funds controlled by Freeman Spogli & Co., a leading private equity investment firm specializing in the retail segment. Mattress Giant, known for its catchy “Catch Some Z’s” marketing campaign, has positioned itself as one of the nation’s premier bedding retailers. The Company views this transaction as a positive next step towards the continued growth of the organization. Mattress Giant has experienced impressive store growth, positive same store sales, and is on track to report record sales in 2006.

“We are tremendously excited about the quality reputation and professionalism that distinguishes Freeman Spogli & Co. They enthusiastically share our vision of growth for Mattress Giant. Continued, controlled growth will provide additional opportunities for our employees and our vendor partners” said Barrie Brown, President & CEO of Mattress Giant. “We anticipate a normal day-to-day environment for current employees as we continue to grow existing areas, as well as explore new markets. As a team, our employees have dramatically improved the sales, operations, and customer service focus of the Company. With the added support of Freeman Spogli & Co”, our team can aspire to even greater levels of accomplishment”, added Brown.

"We believe Mattress Giant represents an extremely attractive investment opportunity" said Jon Ralph of Freeman Spogli & Co. Ralph added "The Company is a leader in the growing specialty bedding retail sector and has an experienced and talented management team led by Barrie Brown. Mattress Giant offers exciting growth prospects through its existing store base as well as through new store development."

Recently named in the Dallas Morning News’ D-FW Top 200, Mattress Giant has grown to over 240 locations nationwide, enjoying tremendous brand recognition for its ability to delight customers with leading edge sleep solutions such as the Tempur-Pedic product line and other brands featuring memory foam, latex and other sleep health related mattresses and accessories.

Freeman Spogli & Co. is a private equity investment firm with offices in Los Angeles and New York dedicated exclusively to investing with management in retail, direct marketing and distribution companies positioned for growth.

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