Sealy Corporation announced results for the fiscal second quarter ending June 1, 2003.

For the quarter, Sealy reported net sales of $269.8 million, a decrease of 10% from $299.8 million for the same period a year ago. Net loss was $1.0 million, compared with an $8.4 million loss a year earlier.

David J. McIlquham
Sealy's president and chief executive officer
"Sales in the second quarter were down as expected due to the restructuring of our former affiliates, continued weak economic conditions, and strong second quarter floor sample shipments in 2002. During the second quarter we were able to make progress on some of our key initiatives, including the introduction of our innovative new Sealy Posturepedic product line at the April High Point Furniture Market."

On June 16, 2003, the Company began shipping its new Sealy Posturepedic line, which represents Sealy's first branded offering with a one-sided design. The new design features an industry-first UniCased(TM) Construction that optimizes the performance of the Posturepedic innerspring by creating a stable feel and providing uniform comfort across the entire mattress. "The new Sealy Posturepedic was developed after extensive product development and consumer research. We have received positive response to the product introduction and we are extremely excited about this great new line," said McIlquham. "The UniCased Construction, exclusive to Sealy, resembles the unibody construction found in most automobiles today. Sealy has thermo-bonded our internal edge support and base to create a stable, integrated unit around the entire innerspring. The end result is a new design that creates the most comfortable bed available. You can see and feel the difference as soon as you lie down on it."

In addition, last quarter Sealy completed the restructuring of its affiliate investments by selling all its interest in Mattress Discounters. "The transaction was completed for approximately $13.6 million, which represented a slight gain," said McIlquham.