**FOR      IMMEDIATE RELEASE**

**Simmons      Company **

**Reports      Record Third Quarter Results**

| **·  ** | **Double-Digit                Growth in Volume Drives Record Sales** |
|------------------------|----------------------------------------------------------------------|

| **·  ** | **Operational                Improvements Deliver Increased Operating                Margins** |
|------------------------|------------------------------------------------------------------------------------------------|

| **·  ** | **Substantial                Improvements in EBITDA and EBITDA                Margin** |
|------------------------|----------------------------------------------------------------------------------------|

| **·  ** | **Gary                Matthews Appointed                President** |
|------------------------|---------------------------------------------------------------------|

**Results      for the Quarter Ended September 30, 2006**

**Results      for the Nine Months Ended September 30, 2006**

**Simmons      Appoints New President**

**About      Simmons Company**

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**“Safe      Harbor” Statement under Private Securities Litigation Reform Act of      1995:**

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|   **Simmons                    Company and Subsidiaries**                           |
|-----------------------------------------------------------------------------------------------|
|   **Condensed                    Historical Consolidated Statements of Operations** |   |
|                      **(in thousands)**                                                  |   |
|     **(Unaudited)**                                             |   |
|                                                                                          |   |   |   | **Quarters                    Ended** |   | **Nine                    Months Ended** |   |
|                                                                                          |   |   |   | **September                    30,** |   |  **September                    24,** |   | **September                    30,** |   |  **September                    24,** |   |
|                                                                                          |   |   |   | **2006** |   |  **2005** |   | **2006** |   |  **2005** |   |
| Wholesale                    net sales                                                        | $ | 248,255 |   | $ | 210,276 |   | $ | 687,871 |   | $ | 592,572 |   |
| Retail                    net sales                                                           |   | 14,968 |   |   | 21,617 |   |   | 61,545 |   |   | 59,508 |   |
| Eliminations                                                                                  |   | (3,457 | ) |   | (5,050 | ) |   | (12,581 | ) |   | (11,613 | ) |
| Net                    sales                                                                  |   | 259,766 |   |   | 226,843 |   |   | 736,835 |   |   | 640,467 |   |
| Cost                    of products sold                                                      |   |   |   |   |   | 142,562 |   |   | 128,926 |   |   | 411,051 |   |   | 360,348 |   |
| Gross                    profit                                                               |   | 117,204 |   |   | 97,917 |   |   | 325,784 |   |   | 280,119 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                    expenses:                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling,                    general and administrative expenses                               |   |   |   |   |   | 84,089 |   |   | 74,023 |   |   | 236,628 |   |   | 226,526 |   |
| Gain                    on sale of Sleep Country USA                                          |   |   |   |   |   | (43,834 | ) |   | - |   |   | (43,834 | ) |   | - |   |
| Amortization                    of intangibles                                                |   |   |   |   |   | 1,386 |   |   | 1,418 |   |   | 4,220 |   |   | 4,276 |   |
| Licensing                    revenues                                                         |   |   |   |   |   | (2,199 | ) |   | (2,553 | ) |   | (6,498 | ) |   | (7,419 | ) |
|                                                                                          |   |   |   |   |   | 39,442 |   |   | 72,888 |   |   | 190,516 |   |   | 223,383 |   |
| Operating                    income                                                           |   | 77,762 |   |   | 25,029 |   |   | 135,268 |   |   | 56,736 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                    expense, net                                                      |   |   |   |   |   | 18,041 |   |   | 18,008 |   |   | 61,932 |   |   | 51,781 |   |
| Income                    before income taxes                                                 |   | 59,721 |   |   | 7,021 |   |   | 73,336 |   |   | 4,955 |   |
| Income                    tax expense                                                         |   |   |   |   |   | 17,799 |   |   | 3,021 |   |   | 22,920 |   |   | 2,088 |   |
| Net                    income                                                                 | $ | 41,922 |   | $ | 4,000 |   | $ | 50,416 |   | $ | 2,867 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adjusted                    EBITDA (a)                                                        | $ | 43,460 |   | $ | 35,771 |   | $ | 119,730 |   | $ | 83,404 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See                    Notes to Condensed Historical Financial Data.                          |   |   |   |   |   |   |   |   |   |   |   |   |

----

|    **Simmons                  Company and Subsidiaries**                                        |   |
|----------------------------------------------------------------------------------------------------------------|--------|
|    **Condensed                  Consolidated Balance Sheets**                                   |   |
|    **(in                  thousands)**                                                          |   |
|                                                                                                           |   |    |   | **September                  30,** |   | **December                  31,** |   |
|                                                                                                           |   |    |   | **2006** |   | **2005*** |   |
|                                                                                                           |   |    |   | **(Unaudited)** |   |   |   |
| **Assets**                                                                                                     |   |   |   |   |   |   |   |
| Current                  assets:                                                                               |   |   |   |   |   |
| Cash                  and cash equivalents                                                                     |   |   |   |   | $ | 101,680 |   | $ | 24,622 |   |
| Accounts                  receivable, net                                                                      |   |   |   |   |   | 84,860 |   |   | 74,682 |   |
| Inventories                                                                                                    |   |   |   |   |   | 24,819 |   |   | 28,579 |   |
| Assets                  held for sale                                                                          |   |   |   |   |   | - |   |   | 19,116 |   |
| Other                  current assets                                                                          |   |   |   |   |   | 20,319 |   |   | 16,958 |   |
|  Total                  current assets                                                                    |   |   |   |   |   | 231,678 |   |   | 163,957 |   |
|                                                                                                           |   |   |   |   |   |   |   |   |   |   |
| Property,                  plant and equipment, net                                                            |   | 54,230 |   |   | 53,613 |   |
| Goodwill,                  net                                                                                 |   | 481,211 |   |   | 481,280 |   |
| Intangible                  assets, net                                                                        |   | 532,963 |   |   | 536,963 |   |
| Other                  assets                                                                                  |   | 34,755 |   |   | 44,964 |   |
|                                                                                                           |   |   |   |   | $ | 1,334,837 |   | $ | 1,280,777 |   |
|                                                                                                           |   |   |   |   |   |   |   |   |   |   |
| **Liabilities                  and Stockholders' Equity**                                                      |   |   |   |   |   |   |
| Current                  liabilities:                                                                          |   |   |   |   |   |   |
| Current                  maturities of long-term debt                                                          |   |   |   |   | $ | 413 |   | $ | 1,602 |   |
| Accounts                  payable and accrued liabilities                                                      |   |   |   |   |   | 109,592 |   |   | 103,222 |   |
| Liabilities                  held for sale                                                                     |   |   |   |   |   | - |   |   | 9,968 |   |
|  Total                  current liabilities                                                               |   |   |   |   |   | 110,005 |   |   | 114,792 |   |
|                                                                                                           |   |   |   |   |   |   |   |   |   |   |
| Long-term                  debt                                                                                |   | 891,221 |   |   | 906,148 |   |
| Deferred                  income taxes                                                                         |   | 165,026 |   |   | 144,418 |   |
| Other                  non-current liabilities                                                                 |   | 13,536 |   |   | 11,072 |   |
|  Total                  liabilities                                                                       |   |   |   |   |   | 1,179,788 |   |   | 1,176,430 |   |
|                                                                                                           |   |   |   |   |   |   |   |   |   |   |
| Stockholders'                  equity                                                                          |   | 155,049 |   |   | 104,347 |   |
|                                                                                                           |   |   |   |   | $ | 1,334,837 |   | $ | 1,280,777 |   |
|                                                                                                           |   |   |   |   |   |   |   |   |   |   |
| See                  Notes to Condensed Historical Financial Data.                                             |   |   |   |   |   |   |
|                                                                                                           |   |   |   |   |   |   |   |   |   |   |
| *                  Derived from the Company's 2005 audited Consolidated Financial                  Statements. |

----

|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | **Simmons                            Company and Subsidiaries**               |
|----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------|
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | **(Notes                            to Condensed Historical Financial Data)** |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                          |   |   |   |   |   |   |   |   |   |
| a)     | Adjusted                            EBITDA (as defined in Simmons Bedding's senior credit                            facility) differs                            from the term "EBITDA" as it is commonly used.  In addition to                            adjusting net income to exclude interest expense, income                            taxes and                            depreciation and amortization, adjusted EBITDA also adjusts                            net income by                            excluding items or expenses not typicaly excluded in                            the calculation of                            "EBITDA" such as management fees, reorganization expense,                            and other                            unusual or non-recurring charges or credits.  Adjusted EBITDA is                            presented because it is a material component of the covenants                            contained                            within Simmons Bedding's credit agreements and is a measure                            used by                            management to determine operating performance.  EBITDA does not                            represent net income or cash flows from operations as                            those terms are                            defined by accounting principles generally accepted in                            the United States                            and does not necessarily indicate whether cash flows                            will be sufficient to                            fund cash needs.  Below is a reconciliation of net income to adjusted                            EBITDA: |                                                                          |   |

|                                                                                                                                                                                                                                                                                                              |   |    |   | **Quarters                            Ended** |   | **Nine                            Months Ended** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|-----------------------------------------------|--------|--------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                              |   |    |   | **September                            30,**  |   | **September                            24,**     |   | **September                            30,** |   | **September                            24,** |   |
|                                                                                                                                                                                                                                                                                                              |   |    |   | **2006**                                      |   | **2005**                                         |   | **2006** |   | **2005** |   |
|  Adjusted                          EBITDA:                                                                                                                                                                                                                                                                   |   |              |   |                                          |   |                                             |   |   |   |   |   |
|  Net                            income                                                                                                                                                                                                                                                                       |   |         |   |                                          | $      | 41,922                                           |   | $ | 4,000 |   | $ | 50,416 |   | $ | 2,867 |   |
|  Depreciation                            and amortization                                                                                                                                                                                                                                                    |   |         |   |                                          |   | 7,829                                            |   |   | 7,081 |   |   | 21,885 |   |   | 20,204 |   |
|  Income                            tax expense                                                                                                                                                                                                                                                               |   |         |   |                                          |   | 17,799                                           |   |   | 3,021 |   |   | 22,920 |   |   | 2,088 |   |
|  Interest                            expense                                                                                                                                                                                                                                                                 |   |         |   |                                          |   | 18,558                                           |   |   | 18,073 |   |   | 62,684 |   |   | 51,894 |   |
|                                                                                                                                                                                                                                                                                                              |   |         |   |                                          |   |                                             |   |   |   |   |   |   |   |   |   |   |
| EBITDA                                                                                                                                                                                                                                                                                                            |   |         |   |                                          |   | 86,108                                           |   |   | 32,175 |   |   | 157,905 |   |   | 77,053 |   |
|                                                                                                                                                                                                                                                                                                              |   |         |   |                                          |   |                                             |   |   |   |   |   |   |   |   |   |   |
|  Gain                            on sale of Sleep Country USA                                                                                                                                                                                                                                                |   |         |   |                                          |   | (43,834                                          | )      |   | - |   |   | (43,834 | ) |   | - |   |
|  Reorganization                            expense                                                                                                                                                                                                                                                           |   |         |   |                                          |   | 65                                               |   |   | 2,681 |   |   | 1,519 |   |   | 4,026 |   |
|  Non-cash                            stock compensation                                                                                                                                                                                                                                                      |   |         |   |                                          |   | 13                                               |   |   | 2 |   |   | 530 |   |   | 2 |   |
|  Management                            fees                                                                                                                                                                                                                                                                  |   |         |   |                                          |   | 423                                              |   |   | 420 |   |   | 1,263 |   |   | 1,173 |   |
|  State                            taxes in lieu of income taxes                                                                                                                                                                                                                                              |   |         |   |                                          |   | 205                                              |   |   | 212 |   |   | 692 |   |   | 547 |   |
|  Transaction                            expenses                                                                                                                                                                                                                                                             |   |         |   |                                          |   | 428                                              |   |   | - |   |   | 560 |   |   | 177 |   |
|  Management                            severance                                                                                                                                                                                                                                                             |   |         |   |                                          |   | (60                                              | )      |   | - |   |   | 867 |   |   | 105 |   |
|  Plant                            opening, closing charges                                                                                                                                                                                                                                                   |   |         |   |                                          |   | -                                                |   |   | 281 |   |   | - |   |   | 321 |   |
|  Other,                            net                                                                                                                                                                                                                                                                       |   |         |   |                                          |   | 112                                              |   |   | - |   |   | 228 |   |   | - |   |
|                                                                                                                                                                                                                                                                                                              |   |         |   |                                          |   |                                             |   |   |   |   |   |   |   |   |   |   |
| Adjusted                            EBITDA                                                                                                                                                                                                                                                                        |   |         |   |                                          | $      | 43,460                                           |   | $ | 35,771 |   | $ | 119,730 |   | $ | 83,404 |   |
|                                                                                                                                                                                                                                                                                                              |   |         |   |                                          |   |                                             |   |   |   |   |   |   |   |   |   |   |
| b) Working                            capital computation (current assets less current liabilities                            as defined in                            our senior credit facility and excluding assets and liabilities                            held for                            sale): |
|                                                                                                                                                                                                                                                                                                              |   |         |   |                                          |   |                                             |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                              |   |         |   |                                          |   |                                             |   |   |   |   |   | **September                            30,** |   |   | **December                            31,** |   |
|                                                                                                                                                                                                                                                                                                              |   |         |   |                                          |   |                                             |   |   |   |   |   | **2006** |   |   | **2005** |   |
| Current                            assets                                                                                                                                                                                                                                                                         |   |         |   |                                          |   |                                             |   |   |   |   | $ | 231,678 |   | $ | 163,957 |   |
|                                                                                                                                                                                                                                                                                                              |   |         |   |                                          |   |                                             |   |   |   |   |   |   |   |   |   |   |
| Less:                                                                                                                                                                                                                                                                                                             |   |         |   |                                          |   |                                             |   |   |   |   |   |   |   |   |   |   |
|  Cash                            and cash equivalents                                                                                                                                                                                                                                                        |   |         |   |                                          |   |                                             |   |   |   |   |   | (101,680 | ) |   | (24,622 | ) |
|  Assets                            held for sale                                                                                                                                                                                                                                                             |   |         |   |                                          |   |                                             |   |   |   |   |   | - |   |   | (19,116 | ) |
|                                                                                                                                                                                                                                                                                                              |   |         |   |                                          |   |                                             |   |   |   |   |   | 129,998 |   |   | 120,219 |   |
|                                                                                                                                                                                                                                                                                                              |   |         |   |                                          |   |                                             |   |   |   |   |   |   |   |   |   |   |
|  Current                            liabilities                                                                                                                                                                                                                                                              |   |         |   |                                          |   |                                             |   |   |   |   |   | 110,005 |   |   | 114,792 |   |
|                                                                                                                                                                                                                                                                                                              |   |         |   |                                          |   |                                             |   |   |   |   |   |   |   |   |   |   |
| Less:                                                                                                                                                                                                                                                                                                             |   |         |   |                                          |   |                                             |   |   |   |   |   |   |   |   |   |   |
|  Current                            maturities of long-term debt                                                                                                                                                                                                                                             |   |         |   |                                          |   |                                             |   |   |   |   |   | (413 | ) |   | (1,602 | ) |
|  Liabilities                            held for sale                                                                                                                                                                                                                                                        |   |         |   |                                          |   |                                             |   |   |   |   |   | - |   |   | (9,968 | ) |
|                                                                                                                                                                                                                                                                                                              |   |         |   |                                          |   |                                             |   |   |   |   |   | 109,592 |   |   | 103,222 |   |
|                                                                                                                                                                                                                                                                                                              |   |         |   |                                          |   |                                             |   |   |   |   |   |   |   |   |   |   |
|  Working                            capital                                                                                                                                                                                                                                                                  |   |         |   |                                          |   |                                             |   |   |   |   | $ | 20,406 |   | $ | 16,997 |   |