<PAGE> 1
EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Contact: William S. Creekmuir
Simmons Company
770-512-7700
PATENT AND TRADEMARK LITIGATION BETWEEN SIMMONS COMPANY AND SERTA, INC. SETTLED
Atlanta, Georgia, (December 28, 2000) ---- Simmons Company announced
today that it had reached a settlement in its dispute with Serta, Inc. and its
licensees regarding certain alleged patent and trademark infringement. The
complaint was filed against Simmons Company in the United States District Court
for the Northern District of Illinois, Eastern Division, alleging that certain
Simmons' products infringed one of Serta's U.S. patents, and that Simmons' use
of the term "Crescendo" infringed upon Serta's alleged common-law trademark,
"Crescendo".
Simmons Company maintains that it did not infringe on any of Serta's
patents or trademarks. However, in order to conclude the matter and avoid the
additional costs of protracted litigation, Simmons has agreed to pay Serta, Inc.
$4.25 million, payable $2.125 million at the time of the execution of the
Settlement Agreement with the balance payable in installments of $531,250 at the
end of each calendar quarter during the year 2001. While not acknowledging the
validity of the patent, Simmons agreed not to challenge the patent's validity
and further agreed during the life of the patent not to manufacture or sell
mattresses in the United States containing certain specific configurations.
Simmons' Chairman and Chief Executive Officer Charlie Eitel said: "We
are happy to have this matter behind us, minimizing the distraction to Simmons
management and allowing us to focus on continuing to grow both our business and
that of our dealers," he added.
Eitel added that none of the technology or trademarks in dispute in
this matter are used in any of Simmons' current products and that the settlement
will not impede the Company's ability to offer any of its current or planned
products, nor its ability to continue to invest in new product development.
Maker of Beautyrest(R), BackCare(R), DreamScapes(TM), and Deep
Sleep(R), Atlanta-based Simmons Company employs more than 3,000 people and
operates 18 plants throughout the United States and Puerto Rico. Simmons is
committed to helping consumers attain a higher quality of sleep and supports its
mission through a Better Sleep Through Science(TM) philosophy, which includes
developing superior mattresses and promoting a sound, smart sleep routine. For
more information, consumers and customers can visit the Company's website at
www.simmons.com.
<PAGE> 2
FORWARD-LOOKING STATEMENTS: This news release contains forward-looking
statements within the meaning of Section 21E of the Securities Exchange Act of
1934, such as, among others, statements relating to future operating results and
customer acceptance of our products. Such statements are dependent on a number
of factors, which could cause actual results to differ materially from those
expressed or implied in the forward-looking statements. Such factors include the
Company's ability to continue its sales growth and further improve its
profitability, in addition to those factors identified from time to time in the
Company's required filings with the U.S. Securities and Exchange Commission.
