Sleep Number Corporation announced that it has appointed Stephen E. Macadam and Hilary A. Schneider to its Board of Directors (the ?Board?), effective immediately, expanding the Board to twelve members. In conjunction with the appointments, Sleep Number entered into a cooperation agreement (the ?Cooperation Agreement?) with Stadium Capital Management, LLC (collectively with its affiliates, ?Stadium Capital?), one of the company?s shareholders. Steve Macadam is the Chairman of Atmus Filtration Technologies Inc. and Veritiv Corporation and the former Chief Executive Officer of EnPro Industries Inc. and BlueLinx Holdings Inc.Mr. Macadam also serves on the Board of Directors of Louisiana-Pacific Corporation.

He possesses experience in areas that include capital allocation, corporate governance, supply chain and logistics and strategic planning. Hilary Schneider was previously the Chief Executive Officer of Shutterfly Inc. and serves on the Board of Directors of Vail Resorts Inc., Getty Images Holdings Inc., and DigitalOcean Holdings Inc. She previously served as the Chief Executive Officer of Wag! Group Co.

and LifeLock Inc. She possesses experience in areas that include consumer products and technology, corporate governance, executive compensation, and strategic planning. Pursuant to the Cooperation Agreement, the Board has established a Capital Allocation and Value Enhancement Committee (the ?Capital Allocation Committee?) to review the company?s use and investment of capital and make recommendations to the full Board. The four-member committee will include Mr. Macadam and Ms. Schneider along with Philip Eyler and Barbara Matas, with Mr. Macadam and Ms. Matas serving as co-Chairs of the committee.

Stadium Capital has agreed to a customary standstill, voting commitment, and related provisions in connection with the Cooperation Agreement. A copy of the Cooperation Agreement will be included as an exhibit to the company?s current report on Form 8-K, which will be filed with the U.S. Securities and Exchange Commission (the ?SEC?). Sidley Austin LLP is serving as legal counsel and Spotlight Advisors LLC is serving as financial and strategic advisor to Sleep Number.

Olshan Frome Wolosky LLP is serving as legal counsel and Longacre Square Partners is serving as strategic advisor to Stadium Capital.