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Washington, D.C. 20549


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Dear Shareholders,

Sleep Number’s long-term orientation, mission-driven culture and focus on our customer’s experience are creating value for our shareholders. Over the past five years we have invested $425 million to transform the company, establish our innovation leadership and strengthen our competitive advantages. The coordinated investments we have made in digital capabilities, stores, products, technologies and infrastructure have made us a stronger competitor with superior products and customer experiences. These investments culminate in 2017 as we launch the most significant innovation in our thirty-year history: Sleep Number 360™ smart beds.

We are capitalizing on momentous consumer trends – ranging from what consumers value in their lives to how they shop and what they expect from brands. This is an exciting time for companies like Sleep Number that have digital at their core and the ability to connect with customers from that first engagement to a life-long relationship. Our consumer innovation strategy has positioned us to succeed in this digitalized, fast-changing world.

We believe sleep is the center of a healthy mind,

The above information was disclosed in a filing to the SEC. To see the filing, click here.

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