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                                                                      EXHIBIT 99

                        Simmons Company and Subsidiaries
              Reconciliation of Operating Income to Adjusted EBITDA
                                 (in thousands)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                       September 30, 2000   September 25, 1999
                                                                           (14 weeks)           (13 weeks)
                                                                           ----------           ----------

<S>                                                                           <C>                  <C>
Operating income                                                              $16,015              $14,883
Add:  Depreciation and amortization                                             4,832                4,661
      ESOP expense                                                              1,675                1,792
                                                                               ------               ------
EBITDA (a)                                                                     22,522               21,336
Add:  Charges related to change in retail investment
        strategy                                                                3,113                    -
      Increase in bad debt reserve related to
        Heilig-Meyers bankruptcy filing                                         1,820                    -
      Cash operating loss related to Gallery Corp.                                401                    -
                                                                               ------               ------
Adjusted EBITDA                                                               $27,856              $21,336
                                                                               ======               ======
</TABLE>

<TABLE>
<CAPTION>
                                                                       September 30, 2000   September 25, 1999
                                                                           (40 weeks)           (39 weeks)
                                                                           ----------           ----------
<S>                                                                           <C>                  <C>
Operating income                                                              $18,047              $22,582
Add:  Depreciation and amortization                                            14,309               13,663
      Management compensation--severance related                                3,777                    -
      ESOP expense                                                              5,339                5,376
                                                                               ------               ------
EBITDA (a)                                                                     41,472               41,621
Add:  Charges related to change in retail investment
        strategy                                                                7,801                    -
      Increase in bad debt reserve related to
        Heilig-Meyers bankruptcy filing                                         1,820                    -
      Cash operating loss related to Gallery Corp.                                911                    -
                                                                               ------               ------
Adjusted EBITDA                                                               $52,004              $41,621
                                                                               ======               ======
</TABLE>

(a)      EBITDA represents earnings before interest expense, income tax expense,
         depreciation and amortization. We believe that EBITDA is a widely
         accepted financial indicator of a company's ability to service or incur
         debt and a similar measure is utilized for purposes of the covenants
         contained in the indenture related to the 10.25% Series B Subordinated
         Notes due 2009 and the Senior Credit Facility. EBITDA and adjusted
         EBITDA are not measurements of operating performance calculated in
         accordance with generally accepted accounting principles and should not
         be considered substitutes for operating income, net income, cash flows
         from operating activities or other statements of operations or cash
         flow data prepared in accordance with generally accepted accounting
         principles, or as measures of profitably or liquidity. EBITDA and
         adjusted EBITDA may not be indicative of our historical operating
         results, nor are they meant to be predictive of potential future
         results. Our measures of EBITDA and adjusted EBITDA may not be
         comparable to those recorded by other companies.