We continue to successfully navigate through a year of domestic product transition and challenging industry and competitive environment, while driving strong sales and margin growth internationally.
David J. McIlquham, Chairman and Chief Executive Officer, Sealy

Sealy Corporation reported net sales for the fiscal quarter ended August 27, 2006 increased 6.4% to $415.1 million from $390.0 million for the comparable period a year earlier as average unit selling price increased 5.0% and unit volume increased 1.3%. International net sales increased 24.3%. Domestic net sales increased 2.0%.

Third quarter gross profit was $185.2 million, or 44.6% of sales. up slightly from 2005. Net income was $29.4 million versus $26.3 million for the comparable period a year ago.

"We continue to successfully navigate through a year of domestic product transition and challenging industry and competitive environment, while driving strong sales and margin growth internationally," said David J. McIlquham, Sealy's Chairman and Chief Executive Officer. "Our efforts are focused on improving the product upgrade cycles in order to drive positive unit growth, including executing on initiatives that provide our retail partners with the beds that will drive traffic on their selling floors. Over the long term, it is critical for us to continue to innovate new products and successfully execute on our three main growth drivers - core innerspring products, specialty products and international expansion."

Mr. McIlquham continued, "We are confident that there is significant opportunity to improve our future performance in the coming years behind our new products and an anticipated rebound in industry sales."