Simmons US sold its Canadian manufacturing rights in 1990 as part of a Canadian management led buyout and currently does not own any units of SCI or any equity interest in Simmons Canada.

Simmons Bedding Company (Simmons US) will acquire Simmons Canada Inc. ("Simmons Canada"), a leading manufacturer of bedding products in Canada, from SCI Income Trust for C$130 million. Simmons US sold its Canadian manufacturing rights in 1990 as part of a Canadian management led buyout and currently does not own any units of SCI or any equity interest in Simmons Canada.

The acquisition provides SCI's shareholders with a premium of approximately 30% over the September 20th closing price of C$12.46 per unit on the Toronto Stock Exchange.

"We are thrilled with the prospects of welcoming Simmons Canada back into the Simmons family and expanding our North American market position," said Charlie Eitel, Simmons US' Chairman and Chief Executive Officer.

Terry Pace, President and CEO of Simmons Canada, said, "We purchased the Simmons Canada business and became a licensee of Simmons US in 1990. Since that time we have continued to work closely with the Simmons US team. We are excited to be joining with Simmons US and look forward to working with them to continue to grow our business."