Clinton Group makes recommendations to Select Comfort

By Lisa Kerner

Charlotte, N.C., March 10 - Select Comfort Corp. investor Clinton Group asked to meet with the company's chairman of the board and also outlined suggested initiatives it believes would improve Select Comfort's strategic direction.

In the March 6 letter to William McLaughlin, Select Comfort's chairman, Clinton's vice chairman Jerry W. Levin noted that the company has lost some 79% of its market value which cannot be blamed on a "difficult macroeconomic environment," a schedule 13D filing with the Securities and Exchange Commission stated.

Clinton Group wants Select Comfort to:

• Focus on direct marketing;

• Disband the "Quality of Life Advisory Board";

• Eliminate underperforming stores;

• Cease all new store openings;

• Close stores and eliminate the excess regional and corporate overhead;

• Freeze spending on the SAP system installation;

• Consider subleasing or disposing of the new corporate headquarters;

• Consider outsourcing its call center operations; and

• Revise new chief executive officer performance metrics to earn 2008 base salary to align with shareholders interests.

Select Comfort is a Minneapolis-based developer, manufacturer, marketer and supporter of adjustable-firmness beds and other sleep-related accessory products.

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