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					                                                                  Sheet1


EXHIBIT 1 INCOME STATEMENTS (IN MILLIONS), (Yen)
                                12 Months ended
                                  December 31
                                                              12 Months ended June 30
                                    1986      1985      1985      1984      1983      1982
Net Sales                              3006      2958      2803      2479      2347      2018
 Cost of goods sold                   -2026     -1927     -1828     -1712     -1621     -1419
Gross Profit                            980      1031       975       768       726       599
 Total SG&A                            -466      -474      -455      -357      -318      -277
 Other income/(expenses)                  0         0         0        -2        -2        -1
Operating income                        514       557       520       409       406       321
 Other interest income/(expenses)        25        75        84        56        46        33
 Other income/(expense)                  -5       -16       -14        -5        -2        19
Pre-tax income                          534       616       590       460       450       373
 Income tax                            -397      -266      -353      -264      -259      -212
Net income                              137       350       237       196       191       161
Margin (Percentage of net sales)
 Gross Profit                       32.60%    34.90%    34.80%      31.00%    30.90%    29.70%
 Operating income                      17.1      18.8      18.6        16.5      17.3      15.9
 Pre-tax income                        17.8      20.8        21        18.5      19.2      18.5
 Net income                             4.6      11.8       8.5         7.9       8.1         8




                                                                  Page 1
                                           Sheet2


EXHIBIT 2 BALANCE SHEETS (IN MILLIONS), (Yen)
                                  December 31                   June 30
                                 1986      1985     1985     1984     1983         1982

Assets
 Cash                                331     1151      633      258       71           43
 Marketable securities                35        0      284      351      702          259
 Trade receivables                   766      879      794      672      608          545
 Inventories                         199      164      219      212      193          217
 Other current assets                 86       94       18       18       23           23
  Current Assets                    1417     2288     1948     1511     1597         1087

Net property, plant and equipment    214      221      233      253      251          270
 Other assets                        147       95       14       14        3            3
 Due from parent company               0        0      454      486      208          400
Total assets                        1778     2604     2649     2264     2059         1760
Liabilities and equity
 Trade accounts payable             392       378      340      307      261          232
 Accrued expenses                    56        52       68       47       42           28
 Income taxes payable               191       167      245      138      195          120
   Current Liabilities              639       597      653      492      498          380

 Due to parent company               209        0        7        4        0            0
 Pension liabilities                 186      154      142      125      100           81
 Deferred income taxes                 0        0     -135     -101      -88          -60
  Total liabilities                 1034      751      667      520      510          401

 Common stock                       319       565      310      310      310          310
 Legal reserve                       78        59        0        0        0            0
 Retained earnings                  347      1228     1671     1434     1239         1048
 Shareholders' equity               744      1852     1981     1744     1549         1358

Total liabilities and equity        1778     2603     2648     2264     2059         1759
                                                                               `




                                           Page 2
                                           Sheet3


Exhibit 3 SALES BREAKDOWN BY PRODUCT
Product                                      % of Sales

1 Beautyrest                                      35.9
2 Headboards, frames, and night tables            30.7
3 Box springs                                     14.5
4 Open coils                                      12.7
5 Bed accessories                                  6.2
                                                100.00


Exhibit 4 JAPANESE BEDDING MARKET SHARES

Company                                      Market share, %

1 France Bed                                         40
2 Nihon Bed                                          10
3 Toyota Bed                                          8
4 Dream Bed                                           6
5 Simmons Japan Limited                               4
6 Suzuran                                             4
7 Tokyo                                               3
8 Annel                                               2
9 Others                                             23
                                                    100




                                           Page 3
                                                 Sheet4


EXHIBIT 5 TARGET CAPITAL STRUCTURE FOR SIMMONS JAPAN LIMITED
                    ($ THOUSANDS; Yen MILLIONS)

                          Seven-year      Ten-year         Senior
                            senior      subordinated      revolving     Common
        Institution      term note, $   term note, $        credit       Stock       Total

PruAsia                                      $4,000                        $3,000      $7,000
Investors                                    $6,000                        $3,000      $9,000
Management                                                                 $1,000      $1,000
Financial Institutions        $6,000                          $6,000                  $12,000

Total
 Dollars                      $6,000        $10,000           $6,000       $7,000     $29,000
 Yen                              960          1,600              960        1,120       4,640




                                                 Page 4
                                                           Sheet5


EXHIBIT 6 SCHEDULE OF INTEREST PAYMENTS AND PRINCIPAL
AMORTIZATION FOR THE PROPOSED DEBT STRUCTURE
(Yen MILLIONS)

                             1987     1988     1989     1990        1991     1992     1993   1994   1995   1996
Seven-year term note, Yen
 Principal outstanding
  at start of year              960      960      800      640         480      320    160
 Principal repayments             0      160      160      160         160      160    160
 Pre-tax interest payments     69.6     69.6       58     46.4        34.8     23.2   11.6

Ten-year subordinated
 Term note, Yen
 Principal outstanding
  at start of year             1600     1600     1440     1280        1190      960   800     640    480   320
 Principal repayments             0      160      160      160         160      160   160     160    320
 Pre-tax interest payments      152      152    136.8    121.6       106.4     91.2    76    60.8   41.8   30.4

Senior revolving credit
 Principal outstanding
  at start of year              960      960      960      960         960      960   960    960    960    960
 Principal repayments
 Pre-tax interest payments     52.8     52.8     52.8     52.8        52.8     52.8   52.8   52.8   52.8   52.8




                                                           Page 5
                                            Sheet6


EXHIBIT 7 FIVE-YEAR PLAN FOR SIMMONS JAPAN LIMITED

                            Year ending December 31 (millions)

                      1987      1988      1989       1990        1991
Domestic sales, Yen     2,582     2,960     3,267      3,610       4,002
Exports                   668       770       880      1,034       1,200
Total sales             3,250     3,730     4,147      4,644       5,202
Gross profit            1,092     1,264     1,465      1,642       1,842
Operating income          537       642       726        812         911
Interest expense         -274      -274      -248       -221        -194
Amortization             -158      -158      -158       -158        -158
Earnings before tax       105       210       320        433         559
Net income                 44        88       134        182         235

Sales growth, %           9.7      14.8       11.2        12          12
Gross margin, %          33.6      33.9       35.3      35.4        35.4
Operating margin, %      16.5      17.2       17.5      17.5        17.5
Pre-tax margin, %         3.2       5.6        7.7       9.3        10.8
Net margin, %             1.4       2.4        3.2       3.9         4.5


                        Year ending December 31 (thousands of U.S.
                                dollars at yen 147 per dollar)
                      1987      1988         1989       1990    1991
Domestic sales, $      17,565    20,136       22,224     24,558  27,224
Exports                 4,544      5,238       5,986      7,034   8,163
Total sales            22,109    25,374       28,211     31,592  35,388
Gross profit            7,429      8,599       9,966     11,170  12,531
Operating income        3,653      4,367       4,939      5,524   6,197
Interest expense       -1,864     -1,864      -1,687     -1,503  -1,320
Amortization           -1,075     -1,075      -1,075     -1,075  -1,075
Earnings before tax       714      1,428       2,177      2,946   3,802
Net income                299        599         912       1238    1599




                                            Page 6
                                            Sheet7


EXHIBIT 8 EXCHANGE RATE AND INTEREST RATE DATA

Exchange rates (yen per dollar)
       Spot              162.05
   Years forward
       1                 157.15
       2                 152.50
       3                 148.00
       4                 143.60
       5                 139.35

Interest rates, %
                                  Japan   United States
Domestic
Treasury bills*                   2.89        5.73
Long-term government bonds        4.61        7.79
Bank deposit rates                4.55        6.30
Corporate bonds                   5.93        8.88
Eurodeposits
 Three months                     4.50        6.25
 Twelve months                    4.31        6.12




                                            Page 7

				
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