Sleepy's Will Pay $25 Million and Assume Certain Company Obligations to Acquire 1800mattress.com...

Sleepy's Will Pay $25 Million and Assume Certain Company Obligations to
Acquire 1800mattress.com Assets

TOP BID AT AUCTION WILL BE PRESENTED TO COURT THURSDAY

LONG ISLAND CITY, N.Y., May 27 /PRNewswire/ -- Sleepy's, the nation's largest
mattress retailer, has emerged as the highest and best bidder in the judgment
of 1800mattress.com, the creditors committee and court-approved investment
banker to acquire 1800mattress.com for $25 million, besting four other
interested parties. The companies will present their plan Thursday to the U.S.
Bankruptcy Court for the Eastern District of New York, whose approval is
required.

In a day-long auction process on Tuesday, four other retailers and investor
groups bid on the assets of 1800mattress.com, the nation's leading premiere
telephone, internet and chat retailer of bedding and sleep products.

Sleepy's expressed its interest early in the process, going as far as having
1800mattress.com include a copy of its proposed contract of sale in its
Chapter 11 filing on March 23rd. Sleepy's also provided $900,000 in
debtor-in-possession financing that, together with the company's existing cash
flow, enabled 1800mattress.com to fulfill its obligations during the Chapter
11 process.

"I believe Sleepy's provided us with the best opportunity to pay our creditors
and move our brand forward," said 1800mattress.com Chairman and CEO Napoleon
Barragan. "As I said at the time of the filing, there are tremendous business
synergies we can leverage by affiliating with Sleepy's. This combination
offers us the opportunity to pursue our historic strengths in phone and
internet sales."

"1800mattress.com is a valuable brand poised for future growth. My team and I
look forward to working with its vendors and employees to assure that
customers receive the same quality service and merchandise that have made it
so successful," said Sleepy's COO Adam Blank

About 1800mattress.com
Founded in 1976, 1800mattress.com is the leading national multi-channel
(internet, chat, call center and showrooms) retailer of mattresses, box
springs and bedding products. It features products by all major brands,
including custom sizes, sofa beds, Murphy beds, futons, and adjustable and
organic beds. Its award winning customer service is well chronicled in
thousands of media articles and books. The company was also the first
mattress retailer to introduce a two-hour delivery window, and fast national
and international delivery of its products. Its business-to-business sales
division supplies schools, hospitals, hotels and other institutions. For more
information, please visit www.1800mattress.com.

About Sleepy's
Sleepy's, The Mattress Professionals, is a privately-owned company with nearly
700 locations in eleven states, spanning from Vermont to Virginia. Keeping
up-to-date on all the latest innovations in sleep technology, Sleepy's carries
a broad selection of major mattress brands to fit any price range or comfort
level. For over 50 years, Sleepy's has touted the importance of a comfortable
mattress, and achieving better health through a better night's sleep.
Contact: Stan Steinreich
Steinreich Communications LLC
(201) 498-1600

SOURCE 1800mattress.com

Stan Steinreich, Steinreich Communications LLC, +1-201-498-1600