On September 13, 2023, Stadium Capital Management, LLC issued a letter and press release to Sleep Number Corporation?s Board requesting a meeting with the independent directors to discuss the urgent need for shareholder-driven Board change. In the letter, Stadium Capital Management asserted that the Board has presided over abysmal shareholder returns, egregious capital allocation, poor corporate governance practices and questionable compensation decisions. Stadium Capital Management also expressed its views that the Board?s ineffective oversight has enabled management to let costs run out-of-control in pursuit of its wellness technology strategy.

Stadium Capital Management also expressed disappointment with the Board?s rejection of a good faith offer to collaborate on director refreshment, including to add a representative of Stadium Capital Management to the Board. Stadium Capital Management added that it remains open to engaging constructively with the Board and urge the independent directors to meet with them directly.