September 6, 2007

1st Annual Analyst Day

This presentation may contain “forward-looking statements” which include information concerning the Company’s plans,
objectives, goals, strategies, future revenues or performance, capital expenditures, financing needs and other information that is
not historical information.  When used in this presentation, the words “estimates,” “expects,” “anticipates,” “projects,” “plans,”
“intends,” “believes,” and variations of such words or similar expressions are intended to identify forward-looking statements. All
forward-looking statements, including without limitation, the Company’s expectations regarding prospects for growth and future
financial performance, the Company’s expectations regarding demand for its products, increasing slots per store, growing brand
awa
reness, strong cash flow generation, unit share opportunities, new consumer segments, new retail accounts, the Company’s
ability to address product shortages, the Company’s stock repurchase program, the Company’s ability to achieve its long-term
goals and objectives, and expectations related to the costs and availability of raw materials, are based upon current expectations
and beliefs and various assumptions. There can be no assurance that the Company will realize these expectations or that these
beliefs will prove correct.

There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking
statements contained in this presentation.  Numerous factors, many of which are beyond the Company’s control, could cause
actual results to differ materially from those expressed as forward-looking statements. These risk factors include general economic
and industry conditions and consumer confidence; uncertainties arising from global events; the effects of changes in foreign
exchange rates on the Company’s reported earnings; consumer acceptance of the Company’s products; industry competition; the
efficiency and effectiveness of the Company’s advertising campaigns and other marketing programs; the Company’s ability to
increase sales productivity within existing retail accounts and to further penetrate the US retail fur
niture channel, including the
timing of opening or expanding within large retail accounts; the Company’s ability to address issues in certain underperforming
international markets; the Company’s ability to continuously improve its product line, maintain efficient, timely and cost-effective
production and delivery of its products, and manage its growth; changes in foreign tax rates, and rising commodity costs; the
Company’s ability to protect and maintain its intellectual property; the Company’s ability to respond to regulatory requirements; the
Company’s ability to retain members of its senior management team; the effects of increased interest rates; the effects of labor
relations on business operations and costs; the effects of increased product return rates or a reduction in warranty reserves; the
market price for the Company’s common stock prevailing from time to time; and the nature of other investment opportunities
presented to the Company from
 time to time. Additional information concerning these and other risks and uncertainties are
discussed in the Company's filings with the Securities and Exchange Commission, including without limitation the Company's
annual report on Form 10-K under the headings "Special Note Regarding Forward-Looking Statements" and "Risk Factors".  Any
forward-looking statement speaks only as of the date on which it is made, and the Company undertakes no obligation to update
any forward-looking statements for any reason, including to reflect events or circumstances after the date on which such
statements are made or to reflect the occurrence of anticipated or unanticipated events or circumstances.

Forward Looking Statements

ØExecutive team has ~160 years managing large international businesses
          

Seasoned Management Team

Overview

u

            
Worldwide leader in Premium Sleep, the fastest growing
  segment of the ~$13 billion wholesale mattress market

u

            
Global sales under the “TEMPUR®” and “Tempur-Pedic®”
  trademarks in >70 countries

u

            
Leading producer of premium mattresses and pillows

u

            
Products provide greater overall comfort and better quality
  sleep

Source: Independent survey commissioned by Tempur-Pedic

Tempur-Pedic Swedish Sleep System

u

            
Open Cell Technology

u

            
Safe and Healthy

u

            
Maintenance Free

1.

            
Data represents first half 2007 results.

Domestic Sales

u

            
Domestic represents 66% of total sales
    with long-term growth prospects

u

            
Products sold through four channels with
    focus on established retail accounts and
    new opportunities for growth

u

            
US-based R&D center focused on
    product development and targeting new
    consumer segments

u

            
Brand building via advertising campaign
    to drive market share gains

1.

            
Data represents first half 2007 results.

International Sales

u

            
International represents ~34% of
   total sales with long-term growth
   prospects

u

            
Products sold through four channels

u

            
Products designed for unique,
   regional preferences at
   European-based R&D center

u

            
Building brand with large advertising
   commitment

Don’t lose sleep buying the perfect mattress

            
-By Janice
Lieberman

“Companies try to help workers sleep more” 

Sleep, Snoring and the Blues

            
-By SANJAY GUPTA

Sleep Deprivation: New Concerns; Four More Studies Show It
Harms Health

Who Needs Sleep? 

“Sleep for longer if you want to stay healthy”

Not getting enough sleep can make you fat

            
-By Madelyn Fernstrom, Ph.D., CNS

Sleep In The News

ØU.S. Sleep aid industry estimated at >$3B/yr and growing!
          

Tempur-Pedic is neither associated nor affiliated with any of the entities displayed above. 

Note: U.S. Sleep Aid Industry annual market size estimate based on management estimates and publicly available industry
                 estimates for prescription and over-the-counter sleep aids.

Sleep In The News

1. Source:  International Sleep Products Association

Better Mattress … Better Sleep!

u

            
“Sleep in the News” is fueling consumer interest and involvement
   in sleep related products and categories

u

            
Impact on all consumers, but especially the 77 million
   Baby-Boomers

u

            
47% of Americans surveyed said they now believe a mattress is
   the best investment they can make to improve their health and
   wellness1

Source: Independent survey commissioned by Tempur-Pedic

u

            
~95% Tempur-Pedic® consumers recommend the product 

u

            
~65% of consumers recommended Tempur-Pedic up to 5 times  

u

            
42% of consumers report someone purchased a Tempur-Pedic mattress as a result
  of their recommendation 

Consumer Passion

Business Update

u

            
Continue to be pleased with recent business trends

u

            
US retail consumer demand running ahead of prior expectations
    - throughout the quarter and across mattress line

u

            
Some suppliers have not been able to keep up with increased
   demand leading to sporadic product shortages

u

            
Have taken actions to mitigate shortages

u

            
Tempur-Pedic manufacturing facilities continue to operate very
   smoothly 

u

            
Anticipate shortages will be largely eliminated over the next
   several weeks 

Domestic Snapshot

u

            
The Market Opportunity for Tempur-Pedic is significant 

–

            
Our Share Position within both mattress and pillow categories is expanding

–

            
Brand Awareness is at an all-time high (and still growing)

–

            
Consumer Satisfaction and referrals are world class 

–

            
Sales Performance continues to be strong

u

            
Our Consumer-Centric Growth Model guides our activities 

–

            
Incorporates trends in demographics, personal well-being and the retail
  environment 

–

            
Drives new products, brand communication, distribution and medical
  activities

–

            
Will ensure continued market share growth in our core categories

Source: Industry data and company estimates

Mattresses - Dollars

Mattresses - Units

TPX

TPX

u

            
2006 U.S. Market Share

The Market Opportunity is Huge 

Total Brand Awareness for mattresses based on study commissioned by Tempur-Pedic and completed in the first
quarter of each year

26%

44%

60%

73%

78%

86%

Increasing Brand Awareness

Source: Independent survey commissioned by Tempur-Pedic - April 2007

Attribute Rating

0

20

40

60

80

100

Overall Satisfaction (Extremely/Very)

(Excellent/Very Good) Quality

(Meets/Exceeds) Expectations

Would Buy Again

% TPX Owners Stating

95%

95%

94%

94%

93%

93%

88%

88%

Overall Consumer Satisfaction is World Class

u

            
Brand awareness/satisfaction/
   recommendations

u

            
Established customer growth

u

            
Existing product line distribution
   expansion

u

            
Selectively adding new retail customers

u

            
Value added new product launches

1.

            
For a discussion of the Company’s performance for the second quarter of 2007, please refer to the Company’s earnings release included in the
                    Company’s 8-K dated July 19, 2007.

($ in millions)

Domestic Historical Net Sales

Demographic/Psychographic

Sleep and Well-Being

Product

Communications

Distribution

Medical

TPNA Consumer-Centric Growth Model

Demographic/Psychographic

Sleep and Well-Being

Product

Communications

Distribution

Medical

TPNA Consumer-Centric Growth Model

77 Million Baby Boomers

Higher education levels

More discretionary income

More Involved 

Better Informed

More Active

More Demanding

than previous generations

These consumers demand quality, place an enormous value 

on their personal well-being and believe that investment in their 

home is not only rewarding, it is essential

to living a fulfilling lifestyle

Demographic/Psychographic

Sleep and Well-Being

TPNA Consumer-Centric Growth Model

Sleep and Well-Being

Sleep as a health issue being reinforced by:

Medical Studies

Industry Studies

Consumer Surveys

Pharmaceutical Products and Messages

Bedding Retailers

Mattress Companies

Demographic/Psychographic

Sleep and Well-Being

TPNA Consumer-Centric Growth Model

Nutrition

Exercise

Sleep

39%

19%

42%

(1,511 U.S. Adults)

Does the Most to Restore Sense of Well-Being

Q.6:  Which one of the following do you believe does the most to restore 
your sense of well-being? (please select one answer) 

Source: 2007 TPX Consumer Wellness Study

2007 Consumer Wellness Study

Demographic/Psychographic

Sleep and Well-Being

Product

Communications

Distribution

Medical

TPNA Consumer-Centric Growth Model

Product Development Strategy

u

            
We strive to develop innovative products using TEMPUR®
  material that improve the lives of consumers

u

            
New pillow and mattress products must:

–

            
Fill an unmet consumer need

–

            
Over-deliver performance and quality

–

            
Delight the consumer

–

            
Be differentiated versus “siblings”

–

            
Offer improved margins to retailers and to TPX

u

            
Recent examples

–

            
GrandBed, RhapsodyBed, BellaSonnaBed

–

            
Symphony, Grand and Rhapsody pillows

Demographic/Psychographic

Sleep and Well-Being

Product

Communications

Distribution

Medical

TPNA Consumer-Centric Growth Model

Consumer Communication Strategy

u

            
At Tempur-Pedic, we don’t just bring you a bed, we believe
  your bed should do more:

–

            
Your bed should relieve your pain, not add to it

–

            
Your bed should make stress go away

–

            
Your bed should always give you comfort

u

            
Delivered through a significant, integrated, multi-faceted
  campaign that surrounds the “bulls-eye” consumer with our
  single-minded message 

Welcome to Tempur-Pedic. Welcome to Bed.

Welcome To Bed TV Ads

u

            
Show Welcome To Bed Short Form

–

            
Stress

–

            
Pain

–

            
Comfort

Welcome To Bed Print Ads

tempurpedic.com

u

            
Classic DR Advertising:

–

            
Testimonials

–

            
Endorsements

–

            
Calls to action

Direct Response TV

Demographic/Psychographic

Sleep and Well-Being

Product

Communications

Distribution

Medical

TPNA Consumer-Centric Growth Model

w

            
Significant
   growth in slots
   per store

w

            
Specialty 

w

            
Department Stores 

- Significant opportunities for
selective door growth 

w

            
Furniture & Bedding stores:

  - Target 7,000 - 8,000 doors

  - +22% door growth at midpoint of
  target 

1,500

800

200

7,500

6,150

6,053

5,310

4,100

1,500

1,500

1,500

1,500

US Distribution - Number of Total Doors

Source: Industry and company estimates

Department Store Strategy

u

            
According to Home Accent Today’s exclusive Consumer Buying Trends Survey,
  department store shoppers tend to be:

–

            
Loyal to the department store

–

            
Slightly older

–

            
Wealthier  

u

            
Baby Boomers (ages 44 - 60) comprise 49% of department store buyers - well
  ahead of their percentage of the overall population

u

            
43% of department store buyers have household incomes above $75,000 

u

            
Perfect match with Tempur-Pedic’s Best Prospect Consumers  

Demographic/Psychographic

Sleep and Well-Being

Product

Communications

Distribution

Medical

TPNA Consumer-Centric Growth Model

Tempur-Pedic’s Core Equity

u

            
At the heart of Tempur-Pedic brand equity is our Medical heritage

u

            
Repositioning ourselves as a leading well-being brand requires our
  medical attributes to be nurtured

u

            
Therefore, continuing to build our medical business is a strategic
  priority

Selected Medical Relationships

u

            
GE imaging pads

u

            
OSI surgical table pads

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Patterson dental chairs/surfaces

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ROHO wheelchair cushions

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Siemens operating room surfaces

Hill-Rom Relationship

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Links Tempur-Pedic with the #1
   medical support surface provider

u

            
Highlights comfort as a clinical
   issue

u

            
Reinforces Tempur-Pedic’s unique
   and compelling brand equities

u

            
Critical foundation for positioning
   Tempur-Pedic as a leading
   well-being brand 

Welcome to Tempur-Pedic.  Welcome to Bed.

Domestic Snapshot

u

            
The Market Opportunity for Tempur-Pedic is significant 

–

            
Our Share Position within both mattress and pillow categories is expanding

–

            
Brand Awareness is at an all-time high (and still growing)

–

            
Consumer Satisfaction and referrals are world class 

–

            
Sales Performance continues to be strong

u

            
Our Consumer-Centric Growth Model guides our activities 

–

            
Incorporates trends in demographics, personal well-being and the retail
   environment 

–

            
Drives new products, brand communication, distribution and medical
   activities

–

            
Will ensure continued market share growth in our core categories

Market Overview

u

            
International wholesale mattress market size estimated to be >$6
  billion

u

            
Started in Sweden in 1991 - medical focus

u

            
Emphasis shifts to retail in late 1990s

u

            
Since 2003 consistent brand image

u

            
24.5% 5 year net sales CAGR 

u

            
Now present in over 70 markets/countries worldwide from Iceland
  to New Zealand

•

            
17 subsidiaries / 58 third party distributors

•

            
Effective Sept. 2007,  converted Australia from Third Party to Subsidiary

•

            
Global management structure

International Subsidiary

International Third Party

Domestic Subsidiary

Domestic Third Party

Global Presence

Operating Model

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~500 personnel throughout international operations

u

            
Furniture & bedding, department stores, medical, third party
  distribution

u

            
Manages local sales, marketing, distribution and finance

u

            
Brand marketing and product development centrally managed

u

            
Operational and financial efficiencies locally and centrally
  managed

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Product sourced from Denmark production facility

Third Party Distribution

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Seeding strategy for entry to less developed markets

u

            
Pillow often the introduction TEMPUR brand

u

            
Capitalizes on global presence

u

            
Strict control over use of brand and trademarks

u

            
Opportunity to convert to subsidiary 

Market Opportunities

u

            
Retail is the growth driver

u

            
Organic growth in existing subsidiary and third party markets

u

            
Increase brand awareness globally (new global brand style)

u

            
New product introductions/selective price increases

u

            
Low and growing market share across the globe

u

            
Leverage global agreements to maximize Medical Business

u

            
Emerging markets (China, Latin America, MEA)

Market Dynamics

u

            
Dominant local competitors with nearly no global reach

u

            
No two markets are the same

u

            
Retailers locally focused

u

            
Premium category size varies - TPX driving growth

Japan Hotel Partner Program

u

            
Tokyu hotels advertise TEMPUR pillows

u

            
Higher rate for TEMPUR rooms

u

            
Hospitality program in Japan includes > 2,500 sleep surfaces
  and >33,000 pillows

UK

Sweden

Germany

China

Dubai

In Store - Consistent Brand Image

Market hungry for new products…. significant opportunity

New Products

u

            
Increasing brand awareness and
  market share

u

            
Significant established account
  growth

u

            
Selectively adding new doors and
  distributors

u

            
New products

u

            
Emerging markets

1.

            
For a discussion of the Company’s performance for the second quarter of 2007, please refer to the Company’s earnings release included in the
                    Company’s 8-K dated July 19, 2007.

($ in millions)

International Historical Net Sales

w

            
Third Party Conversion to
  Subsidiary

w

            
Target: 5,500 - 6,500 Doors

w

            
+28% Door Growth at
  Midpoint of Target

w

            
Significant growth in slots
  per store

International Doors

International Operations

u

            
Only truly global bedding brand

u

            
Management structure in place to leverage opportunities

u

            
Product development to suit local needs

u

            
Growth opportunities across the globe

w

            
Lead the industry in product

- Quality and customer satisfaction

- Technology development

- Product innovation

w

            
Competitiveness in Operating Excellence

-

            
 Delivery performance

-

            
 Cost

-

            
 Cash management

- Data availability and analysis

Mission - Global Operations

w

            
Consumer-driven design, features, functionality

2006

2007

SymphonyPillow

Scandinavian Bed Supreme

RhapsodyPillow

SymphonyBed

BellaSonnaBed

Refreshed ClassicBed

RhapsodyBed

GrandBed

Research and Development

w

            
State-of-the-art R&D testing facilities in the US & Europe

Research and Development

Denmark (500K sq ft)

Duffield, VA (500K sq ft)

Albuquerque, NM (800K sq ft)

1.

            
Albuquerque facility is in the process of ISO certification

Manufacturing Facilities

u

            
Global, vertically integrated manufacturer

u

            
State of the art, highly automated,
  ISO-certified plants

u

            
> $200 million invested

u

            
Goal: Improve output capacity every year
  without significant new capital investment

Labor

w

            
Productivity

Supply Chain Costs

w

            
Transportation 

w

            
Warehousing

Overhead

w

            
Leverage of existing infrastructure

w

            
Capital expenditures on decline

Other Materials/Packaging

w

            
Global sourcing

w

            
Engineering

Raw Materials

w

            
Yield Improvements

w

            
Scale efficiency

w

            
Global sourcing

Cost Management

w

            
Lead the industry in product

- Quality and customer satisfaction

- Technology development

- Product innovation

w

            
Competitiveness in Operating Excellence

-

            
 Delivery performance

-

            
 Cost

-

            
 Cash management

- Data availability and analysis

Mission - Global Operations

Dale Williams

Executive Vice President & 

Chief Financial Officer

1.

            
For a discussion of the Company’s performance, please refer to the Company’s 10Q filing for 2Q07 and the Company’s prior 10K
                     filings.

($ in millions)                                                                                           ($ in millions)

Worldwide Mattress Net Sales

u

            
41% 5 year CAGR

u

            
Growing brand awareness

u

            
Excellent profit for retailers

u

            
Targeted new stores

u

            
New products

u

            
Increasing slots per store

u

            
High volume per slot

($ in millions)                                                                                             ($ in millions)

1.

            
For a discussion of the Company’s performance, please refer to the Company’s 10Q filing for 2Q07 and the Company’s prior
                    10K filings.

Worldwide Net Sales

u

            
34% 5 year CAGR

u

            
Revenue growth led by mattresses

u

            
Strong growth both Domestically and
   Internationally

u

            
17% growth YTD

u

            
Historical growth all organic

u

            
Expect continued double-digit revenue
   growth for the foreseeable future

1.

            
For a discussion of the Company’s performance, please refer to the Company’s 10Q filing for 2Q07 and the Company’s prior
                  10K filings.

Gross Margin

u

            
Channel mix shift has driven gross
   margin pressure

u

            
Albuquerque start-up primary margin
   pressure in 2007

u

            
2007 is expected to be the trough
   year for gross margin

u

            
Long-term, expect gross margin to be
   50%+

($ in millions)

1.

            
For a discussion of the Company’s performance, please refer to the Company’s 10Q filing for 2Q07 and the Company’s prior
                    10K filings.

Operating Income & Margins

u

            
Operating leverage offsetting most of
   the prior Gross Margin erosion

u

            
Operating Margin will improve with
   Gross Margin stabilization and growth

u

            
Long-term goal to be 25%+
   Operating Margin

($ in millions)

1.

            
For a discussion of the Company’s performance, please refer to the Company’s 10Q filing for 2Q07 and the Company’s prior
        10K filings.

Capital Expenditures

Capital Expenditures & Cash Flow

u

            
Recently completed major capital
   investments

u

            
Free cash flow opportunities

u

            
Cash cycle opportunities

u

            
Modest inventory and receivables
   growth to support sales growth

u

            
$300M of authorizations in ’07 with
   $208M spent through 8/03/07

u

            
Purchased 24% of outstanding
   shares since initial share
   repurchase authorization in 2005

u

            
Average share price $16.88

u

            
Earlier in the quarter, established a
   10b5-1 plan to continue repurchase
   activity

1.

            
2007 Dividend calculated as first two payments plus anticipated payments for the remainder of the year based on the weighted average share
       count at the end of 2Q 2007. 

($ in millions)

6.8M Shares

11.3M Shares

7.2M Shares

Returning Value to Shareholders

Long Term Goals

u

            
Double-digit annual revenue growth

–

            
$2B+ by 2012

u

            
Gross Margins expand to 50%+

u

            
Operating Margins expand to 25%+

u

            
Continue to return value to shareholders

–

            
2005 to 2007: $520M of share repurchase
  authorizations + ~$25M of dividends