...the recent hurricanes in the Gulf Coast caused extensive damage to petrochemical processing facilities which have resulted in a temporary foam shortage that is affecting North America furniture and mattress manufacturers
David J. McIlquham, Sealy's Chairman and Chief Executive Officer

Sealy, Inc. reported a 9.2% increase in year over year sales for the fiscal third quarter ending August 28, 2005.

For the quarter, Sealy reported net sales of $390.0 million, an increase of 9.2% from $357.3 million for the same period a year ago.

"We are pleased with our overall results," said David J. McIlquham, Sealy's Chairman and Chief Executive Officer. "These results were driven by continued strong consumer demand for our brands both domestically and internationally, improvements in the sales mix of our products, strong productivity improvements in our domestic plants, and our ongoing company wide cost reduction initiatives."

Subsequent to the end of the third quarter Sealy announced that as a result of a shortage of TDI, the petrochemical used in the production of polyurethane foam, temporary disruptions in its manufacturing production schedules may occur. According to McIlquham "the recent hurricanes in the Gulf Coast caused extensive damage to petrochemical processing facilities which have resulted in a temporary foam shortage that is affecting North America furniture and mattress manufacturers." To address this, Sealy has been

- Working with suppliers, customers and its entire manufacturing system
to minimize the disruption to its business;

- Leveraging its extensive global business relationships to source foam
product from its partners; and

- Refocusing its North American operations to most effectively produce
orders for customers.

Sealy intends to continue to produce and ship all Sealy Posturepedic, Stearns & Foster, TrueForm and Reflexion brand orders on a normal order cycle. However, spot foam supply shortages in specific plants may disrupt daily or weekly production schedules for the near future.