Sleep Shop Opportunity

Where Mattresses Were Sold 1988

Other 8% Sleep Shops 16%

Department Stores 22%

Furniture Stores 54%

Where Mattresses Are Sold 2007

Warehouse Clubs 4% Factory Direct 3% Other 4% Department Stores 7% Sleep Shops 41% Direct to Consumer 5%

Furniture Stores 36%

Consumer Preference has Shifted

Department stores losing ground
o 22% to 7%

Furniture stores losing ground

o 54% to 36%

Sleep Shops Gaining Considerably

o16% to 41%

How Consumers Shop

Mattress Specialists 60% Furniture Store 35% Factory Direct 35% Manufacturer branded store 34% Department Store 30% Warehouse club 24% Lifestyle Furniture Store 13% Internet 6% Discount Department Store 5%

Source: Furniture Today and HGTV Consumer Views Survey, 2008

How Consumers Shop

Mattress specialists are the preferred channel for the X generation ages: Under 25: 25-34: 35-44: 74% 70% 65%

Source: Furniture Today and HGTV Consumer Vies Survey, 2008

The Serta Philosophy

We grow our business by growing our retailers business

Americas Mattress was formed from this philosophy in 2001. Adhering to this mission statement the Americas Mattress program has grown to one of the largest sleep shop operations in the country.

Americas Mattress

Ranked #9 in the 2007 Top 25 Bedding Retailers and growing fast!

Source: Furniture Today and HGTV Consumer Vies Survey, 2008

Why Americas Mattress?

Turn-Key Operation
Growth Operations Training Marketing Products Systems TurnKey100 Program New Concept Store!!

Proven Business Model

Why Americas Mattress?

Proven Business Model

Growth
- Detailed Market Analysis - Determine market potential & growth plan - Long term multi-unit strategy - Real Estate Acquisition - Best sites at the best prices - Commercial broker specialists - Construction Expertise & Support - Pre-qualified contractors across the US - Exclusive Territories - Allows you to control your destiny!

Why Americas Mattress?

Proven Business Model

Operations
Dedicated team across the US and at Group office
Local Serta representatives provide continuing support Focus on driving RETAIL sales and profitability Sharing of best practices Provide a complete toolbox to help your business

Ongoing Communication and Support Programs

Weekly One Minute Advisor Quarterly Newsletters Only for AM Dealers

You are in business for yourself but not by yourself!

Why Americas Mattress?

Proven Business Model

Training
Bedding Business Management Course
Week long course for all new dealers Premier bedding training course nationwide Opportunity to meet and discuss best practices with other AM owners

Grand Opening Assistance

Complete sales and merchandising training Systems and back-office training Local marketing launch program support

Launch Training Plan Implementation

Goes from -90 days to +90 days of opening

Why Americas Mattress?

Proven Business Model

Marketing
- Full resource center developed exclusively for Americas Mattress owners - National Advertising Fund to create awareness - Local Marketing Support and aggressive coop programs to drive traffic - Americasmattress.com for dealers and customers - Website templates available for use - E-commerce capability which enhances dealer profitability through internet sales - Fully integrated market penetration strategy

Why Americas Mattress?

Proven Business Model

Communications
Sertamarketing.com with Americas Mattress portal Specific Americas Mattress created events Example: Americas Mattress National One Day Sale, all financing charges paid for by Serta. RESULT: 11% Increase in Sales

Why Americas Mattress?

Proven Business Model

Products
- Full line of products designed to compete at all price points and quality - Annual & mid-year new product introductions - Americas Mattress exclusive Value line designed to improve margins - Americas Mattress exclusive featured products such as the Resort Suite Plush - Preferred Vendor Program for Accessories

Why Americas Mattress?

Proven Business Model

Products
Perfect Day: $1,999-$4,999 Vera Wang Specialty: $1,999-$3,999 Vera Wang Innerspring: $999-$1,999 Serta Perfect Sleeper: $799-$1,299 AM Value Line: $299-$749

RESULT: - Americas Mattress owners enjoy blended margins well above industry average

Why Americas Mattress?

Proven Business Model

Systems
Point of Sale Software and Hardware Package - Software system designed exclusively for Americas Mattress owners - Sales ticket processing, inventory controls, delivery scheduling, sales reports and more! - All hardware preloaded with the software for only $800 exclusively for Americas Mattress owners Gives you the edge vs. your competitors

Why Americas Mattress?

Proven Business Model

Americas Mattress New Concept Design

- Serta and Americas Mattress saw need for change through extensive consumer research - Rileys and Williams commissioned to design innovative, exclusive customer experience store - The Results:
22% increase in sales 130% increase in accessory sales $100 increase in average ticket 4% increase in gross margin 17 point increase in closing rate

Why Americas Mattress?

Proven Business Model

Why Americas Mattress?

Proven Business Model

Five Designs to choose from

Coastal

Contemporary

Craftsmen

Rustic

Traditional

Why Americas Mattress?

Proven Business Model

Americas Mattress Benefits Summary

Protected Territory Turn-Key Launch Program New Dealer Financial Assistance Program Level 1 Pricing Provides Higher Margins Preferred Vendor Program Competitive Advertising Coop Program Annual Owners Conference No Franchise or Royalty Fees Low Investment Opportunity Extensive Ongoing Training & Support High Profit Potential

Why Americas Mattress?

Proven Business Model

The Results for 2008

- 50 new Americas Mattress stores opened this year alone and another 25 projected! - Territories still availablefor now. - Now is the time to join the fastest growing segment of the mattress industry with the most successful company of 2008, Serta and Americas Mattress