<SEC-DOCUMENT>0000921895-24-002991.txt : 20241219
<SEC-HEADER>0000921895-24-002991.hdr.sgml : 20241219
<ACCEPTANCE-DATETIME>20241219163145
ACCESSION NUMBER:		0000921895-24-002991
CONFORMED SUBMISSION TYPE:	DFAN14A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20241219
DATE AS OF CHANGE:		20241219

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Sleep Number Corp
		CENTRAL INDEX KEY:			0000827187
		STANDARD INDUSTRIAL CLASSIFICATION:	HOUSEHOLD FURNITURE [2510]
		ORGANIZATION NAME:           	04 Manufacturing
		IRS NUMBER:				411597886
		STATE OF INCORPORATION:			MN
		FISCAL YEAR END:			1228

	FILING VALUES:
		FORM TYPE:		DFAN14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-25121
		FILM NUMBER:		241563787

	BUSINESS ADDRESS:	
		STREET 1:		1001 THIRD AVENUE SOUTH
		CITY:			MINNEAPOLIS
		STATE:			MN
		ZIP:			55404
		BUSINESS PHONE:		7635517000

	MAIL ADDRESS:	
		STREET 1:		1001 THIRD AVENUE SOUTH
		CITY:			MINNEAPOLIS
		STATE:			MN
		ZIP:			55404

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SELECT COMFORT CORP
		DATE OF NAME CHANGE:	19980821

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			STADIUM CAPITAL MANAGEMENT LLC
		CENTRAL INDEX KEY:			0001105087
		ORGANIZATION NAME:           	
		IRS NUMBER:				770500018
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DFAN14A

	BUSINESS ADDRESS:	
		STREET 1:		199 ELM STREET
		CITY:			NEW CANAAN
		STATE:			CT
		ZIP:			06840-5321
		BUSINESS PHONE:		(203) 972-8235

	MAIL ADDRESS:	
		STREET 1:		199 ELM STREET
		CITY:			NEW CANAAN
		STATE:			CT
		ZIP:			06840-5321
</SEC-HEADER>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0">INFORMATION REQUIRED IN PROXY STATEMENT</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0">SCHEDULE 14A INFORMATION</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Amendment No. )</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Filed by the Registrant &#9744;</P>

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9744;</TD><TD>Preliminary Proxy Statement</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top"><TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9744;</TD><TD>Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))</TD></TR></TABLE>



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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top"><TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9744;</TD><TD>Definitive Proxy Statement</TD></TR></TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top"><TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9744;</TD><TD>Definitive Additional Materials</TD></TR></TABLE>



<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top"><TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9746;</TD><TD>Soliciting Material Under &sect; 240.14a-12</TD></TR></TABLE>



<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;&nbsp;</P>

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<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 100%; text-align: center; vertical-align: top; border-bottom: Black 0.5pt solid">SLEEP NUMBER CORPORATION</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="text-align: center; vertical-align: top"><P>(Name of Registrant as Specified In Its Charter)</P>

</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="text-align: center; vertical-align: top; border-bottom: Black 0.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">STADIUM CAPITAL PARTNERS, L.P.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">STADIUM SPECIAL OPPORTUNITY I, L.P.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">STADIUM CAPITAL MANAGEMENT GP, L.P.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">STADIUM CAPITAL MANAGEMENT, LLC</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">ALEXANDER M. SEAVER</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">KEVIN BAKER</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">PATRICK A. HOPF</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">JEFFREY T. JACKSON</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">JESSICA M. PRAGER</P>

<P STYLE="margin: 0; font: 10pt Times New Roman, Times, Serif">GARY FAZIO</P>
</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="text-align: center; vertical-align: top"><P>(Name of Persons(s) Filing Proxy Statement, if other than the Registrant)</P>

</TD></TR>
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<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Payment of Filing Fee (Check all boxes that apply):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top"><TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9746;</TD><TD>No fee required</TD></TR></TABLE>



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<P STYLE="margin-top: 0; margin-bottom: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top"><TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9744;</TD><TD>Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11</TD></TR></TABLE>



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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Stadium Capital Partners,
L.P., together with the other participants named herein (collectively, &ldquo;Stadium Capital&rdquo;), intend to file a preliminary proxy
statement and accompanying <B>WHITE</B> universal proxy card with the Securities and Exchange Commission to be used to solicit votes for
the election of its highly-qualified director nominees at the 2025 annual meeting of shareholders of Sleep Number Corporation, a Minnesota
corporation (the &ldquo;Company&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: left; text-indent: 0.5in">On December 19, 2024, Stadium
Capital issued the following press release and open letter to the Company&rsquo;s shareholders:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 14pt"><B>Stadium Capital Proposes
Pat Hopf and Gary Fazio as Executive Chair and Senior Advisor to Sleep Number&rsquo;s Board</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I>Issues Letter to Sleep Number Shareholders Detailing
How Stadium Capital&rsquo;s Path Forward is Superior to the Board&rsquo;s Current Course of Action</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">NEW CANAAN, Conn.--(BUSINESS WIRE)-- Stadium Capital
Management, LLC (together with certain of its affiliates, &ldquo;Stadium Capital&rdquo; or &ldquo;we&rdquo;), the largest shareholder
of Sleep Number Corporation (NASDAQ: SNBR) (&ldquo;Sleep Number&rdquo; or the &ldquo;Company&rdquo;) with ownership of approximately 11.7%
of the Company&rsquo;s outstanding shares, today released the below open letter to the Company&rsquo;s shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">***</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right">December 19, 2024</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Fellow Shareholders,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On November 25, 2024,<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>1</SUP></FONT>
we communicated our serious concerns about Sleep Number&rsquo;s corporate governance.&nbsp;To reiterate, our&nbsp;main concern is that
while the Board of Directors (the &ldquo;Board&rdquo;) has committed to changes that will eventually lead to improved governance over
time, these changes are not sufficient to improve the Board in a timely fashion &ndash; and importantly, will occur after the Board hires&nbsp;Sleep
Number&rsquo;s next CEO through a deeply flawed process.&nbsp;The Company is essentially asking shareholders&nbsp;to trust&nbsp;an ineffective,
lame duck chief executive to run the business during this critical operating period and a Board that possesses a horrific record to hire
Sleep Number&rsquo;s new leader.&nbsp;In our view, this is unacceptable and&nbsp;yet&nbsp;another significant mistake by the Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In our November 25<SUP>th</SUP>&nbsp;letter, we offered
a collaborative path forward that could be implemented immediately.&nbsp;Our path forward would do two things:&nbsp;first, it would dramatically
improve corporate governance via immediate, meaningful changes to Board composition.&nbsp;This improved Board would have much greater
odds of success in its search to recruit a high-caliber CEO.&nbsp;Second, our path forward would install a highly qualified Executive
Chairman who could drive critical improvements in the business during the &ldquo;lame duck&rdquo; period of outgoing CEO Shelly Ibach&rsquo;s
tenure. This second element is especially important because it would immediately strengthen executive leadership, allowing time to reset
a far more effective CEO search process.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We did not offer a specific name for the Executive
Chairman role in our November 25<SUP>th</SUP> letter. Our hope was that after hearing from many of you, the Board would come to the table
and collaborate with us, at which point we could work together. Unfortunately, despite nearly a month&nbsp;elapsing since our letter,
a 63% rise in&nbsp;Sleep&nbsp;Number&rsquo;s share price,<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>2</SUP></FONT>
and&nbsp;what we suspect to be a significant&nbsp;number of&nbsp;inbound communications&nbsp;from the shareholders it supposedly represents,
the Board has not engaged with us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<HR ALIGN="LEFT" SIZE="1" STYLE="width: 5pc; margin-top: 12pt">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font-size: 10pt"><SUP>1</SUP></FONT> https://www.businesswire.com/news/home/20241125024731/en/Stadium-Capital-Management-Issues-Letter-to-Sleep-Number-Shareholders-Regarding-the-Need-for-a-Reconstituted-Board-and-Independent-CEO-Search</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><SUP>2</SUP></FONT> Calculated as of market close on November 22, 2024, the immediately preceding trading day to the November 25<SUP>th</SUP> letter, to market close on December 11, 2024, the trading day immediately preceding the issuance of our December 12<SUP>th</SUP> letter.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Given the Board&rsquo;s silence on the issue, we wanted&nbsp;to&nbsp;provide
an overview of our proposed path forward, which we are confident most of you will agree is far superior to the Board&rsquo;s current strategy.
We look forward to sharing more details about our plan to help Sleep Number achieve its vast potential and generate superior shareholder
returns.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><U>Pat Hopf &amp; Gary Fazio: The Right People
to Help Oversee a Turnaround at Sleep Number</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We believe Sleep Number should name Patrick &ldquo;Pat&rdquo;
Hopf, one of our Board nominees, as Executive Chairman in short order. Mr. Hopf was the founding investor in Sleep Number (then Select
Comfort) and wrote the original business plan in 1991. He was interim CEO of Sleep Number on two occasions and Chairman for 12 years.
He started the direct response business and helped create the retail and online channels. Mr. Hopf did this because in his words, &ldquo;Owning
a Sleep Number bed literally changed my life. It relieved my back pain so dramatically that my body felt 20 years younger.&rdquo;&nbsp;Mr.
Hopf has been passionate about the benefits of Sleep Number beds since 1991 and has long believed that Sleep Number should be the leader
of the mattress industry.&nbsp;While Mr. Hopf already spends much of the year in Minnesota, he plans to move back permanently in early
2025 so that he can more effectively dig into the issues at Sleep Number.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Mr. Hopf&rsquo;s first move as Executive Chairman
would be to bring on Gary Fazio as Strategic Advisor.&nbsp;Mr. Fazio is a mattress industry legend with an extraordinary record of massive
value creation as CEO of Mattress Firm Group, Inc., which he transformed from a fledgling regional chain into a dominant, nationwide powerhouse.
He was also CEO of Simmons Bedding and later, Serta Simmons Bedding, where he managed 38 manufacturing facilities while turning the company
into the nation&rsquo;s #1 bedding manufacturer with 40% market share. He began his career by spending two decades at Sealy Corporation,
where he oversaw 20 manufacturing&nbsp;facilities and drove double-digit improvements in operating cash flow. In partnership with Mr.
Hopf, Mr. Fazio is prepared to dive in immediately to revitalize Sleep Number&rsquo;s business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We are confident that Mr. Hopf&rsquo;s deep knowledge
of and passion for the Sleep Number brand, combined with Mr. Fazio&rsquo;s exceptionally deep industry contacts and experience, will position
Sleep Number for the great success all of the Company&rsquo;s stakeholders deserve. Messrs. Hopf and Fazio will not waste a moment. We
look forward to sharing their exciting turnaround plan with you.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We believe that by installing Mr. Hopf as Executive
Chairman, bringing Mr. Fazio on as Strategic Advisor, and making the rest of the governance changes suggested in our November 25<SUP>th</SUP>
letter, the upgraded Board will be in the best position possible to chart a value-creating path for Sleep Number and attract a world-class
CEO.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We think it ought to be eminently clear that our recommended
plan is far superior to the current Board&rsquo;s course of action. In our view, trading Ms. Ibach, Brenda Lauderback, Stephen Gulis,
Michael Harrison, and Barbara Matas for Messrs. Hopf and Fazio and a deeply knowledgeable shareholder representative would meaningfully
upgrade the skillsets and experience of executive leadership and the Board. We believe the Board should implement these changes in short
order. We know many of you have agreed with our overall strategy to restore and revitalize Sleep Number. Now, with some more clarity about
that plan, including the exciting addition of Mr. Fazio to our team, we hope you continue to articulate these views directly to the Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Sincerely,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The Stadium Capital Investment Team</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">***</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>About Stadium Capital</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Stadium Capital Management, LLC seeks to apply a patient,
private equity approach to public market investing, anchored by deep fundamental research. Since our strategy inception in 1997, we have
invested in a concentrated portfolio of smaller-cap, public companies across North America and Europe with a long-term investment horizon
and a focus on high-quality businesses with durable free cash flow. We have almost three decades of deep investment experience through
multiple full market cycles, working closely and collaboratively with our portfolio companies. For more information, visit&nbsp;www.StadiumCapital.com.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CERTAIN INFORMATION CONCERNING THE PARTICIPANTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Stadium Capital Partners, L.P. (&ldquo;<U>SCP</U>&rdquo;),
together with the other participants named herein (collectively, &ldquo;<U>Stadium Capital</U>&rdquo;), intend to file a preliminary proxy
statement and accompanying&nbsp;<B>WHITE</B>&nbsp;universal proxy card with the Securities and Exchange Commission (&ldquo;<U>SEC</U>&rdquo;)
to be used to solicit votes for the election of Stadium Capital&rsquo;s slate of highly-qualified director nominees at the 2025 annual
meeting of shareholders of Sleep Number Corporation, a Minnesota corporation (the &ldquo;<U>Company</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">STADIUM CAPITAL STRONGLY ADVISES ALL SHAREHOLDERS
OF THE COMPANY TO READ THE PROXY STATEMENT AND OTHER PROXY MATERIALS, INCLUDING A PROXY CARD, AS THEY BECOME AVAILABLE BECAUSE THEY WILL
CONTAIN IMPORTANT INFORMATION. SUCH PROXY MATERIALS WILL BE AVAILABLE AT NO CHARGE ON THE SEC'S WEB SITE AT&nbsp;HTTP://WWW.SEC.GOV. IN
ADDITION, THE PARTICIPANTS IN THIS PROXY SOLICITATION WILL PROVIDE COPIES OF THE PROXY STATEMENT WITHOUT CHARGE, WHEN AVAILABLE, UPON
REQUEST. REQUESTS FOR COPIES SHOULD BE DIRECTED TO THE PARTICIPANTS' PROXY SOLICITOR.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The participants in the anticipated proxy solicitation
are expected to be SCP, Stadium Special Opportunity I, L.P. (&ldquo;<U>SSO</U>&rdquo;), Stadium Capital Management GP, L.P. (&ldquo;<U>SCMGP</U>&rdquo;),
Stadium Capital Management, LLC (&ldquo;<U>SCM</U>&rdquo;), Alexander M. Seaver, Kevin Baker, Patrick A. Hopf, Jeffrey T. Jackson, Jessica
M. Prager and Gary Fazio. As of the date hereof, SCP directly beneficially owns 2,215,000 shares of Common Stock, par value $0.01 per
share (the &ldquo;<U>Common Stock</U>&rdquo;), of the Company. As of the date hereof, SSO directly beneficially owns 401,459 shares of
Common Stock. SCMGP, as the general partner of SCP and SSO, may be deemed to beneficially own the 2,616,459 shares of Common Stock owned
in the aggregate by SCP and SSO. SCM, as the investment advisor to SCP and SSO and as the general partner of SCMGP, may be deemed to beneficially
own the 2,616,459 shares of Common Stock owned in the aggregate by SCP and SSO. Mr. Seaver, as the manager of SCM, may be deemed to beneficially
own the 2,616,459 shares of Common Stock owned in the aggregate by SCP and SSO. As of the date hereof, Mr. Hopf directly beneficially
owns 51,500 shares of Common Stock, which includes 1,500 shares of Common Stock underlying certain call options that are currently exercisable.
As of the date hereof, Messrs. Baker, Jackson and Fazio and Ms. Prager do not beneficially own any shares of Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Contacts</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Longacre Square Partners<BR>
Charlotte Kiaie / Bela Kirpalani, 646-386-0091<BR>
ckiaie@longacresquare.com&nbsp;/&nbsp;bkirpalani@longacresquare.com&nbsp;</P>



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