Sleep Number shareholders Blue Clay Capital comments on board nominations

Sleep Number shareholders Blue Clay Capital CO III, who through combined interests currently own over 1% of Sleep Number, issued a letter to the board which states, among other things, the following: Blue Clay sought shareholder board representation in 2015 and “was rebuffed by the board and management. Since we withdrew our proxy on May 15, 2015, Sleep Number has declined 46% vs. a 161% gain for Tempur-Pedic and 125% gain for the S&P 500. This significant and unacceptable absolute and relative performance is due to extremely poor management decisions and execution, ineffective strategic decisions and a lack of accountability in management and governance. We share Stadium’s concerns communicated in their press release about misallocation of capital and resources, ineffective strategy, untimely stock repurchases, excessive executive compensation and other issues that have led to weak operating margins and a poor capital structure, resulting in Sleep Number’s long-term share price underperformance…We urge Sleep Number to immediately elect three Stadium Capital nominees to the board. We are concerned with the board’s unacceptable response to Stadium. Any further delay addressing the serious concerns raised by shareholders will only continue the long-term pain shareholders have endured. Immediate action is needed.”