Beter Bed Holding N.V. — Earnings Release 2010

Apr 28, 2010

PRESS RELEASE

Uden, the Netherlands, 28 April 2010

Beter Bed achieves strong performance in first quarter of 2010

• 4.6% increase in revenue
• 51.3% rise in net profit

Beter Bed Holding N.V. realised revenue totalling € 96.5 million in the first quarter of 2010. This represents an increase of 4.6% compared to the first quarter of 2009 (€ 92.2 million). Net profit amounted to € 8.2 million in the first quarter of 2010, compared to € 5.4 million in the first quarter of 2009. Net profit consequently rose by 51.3% in comparison to the same period of last year. The previously announced forecast was that net profit would increase by at least 35%. The rise in net profit is attributable to higher revenue, increased gross profit and a lower tax burden.

Key first-quarter figures

(in millions of € unless stated otherwise)	Q1 2010	Q1 2009	Change
Revenue	96.5	92.2	4.6%
Gross profit (%)	54.8	53.5
Operating profit/EBIT	10.6	7.7	38.5%
Net profit	8.2	5.4	51.3%
Earnings per share (in €)	0.38	0.25	52.0%
Solvency	54.9%	52.2%
Net cash position	21.4	(2.5)

Ton Anbeek, Chief Executive Officer:

'The company achieved record first-quarter revenue with more than a 50% rise in net profit despite the fact that the market performance was negative in the key countries of the Netherlands and Germany. This was once again possible thanks to strong promotional efforts and an improved range. While there is still not a strong recovery of consumer confidence and consumers remain reluctant to spend, we continue to invest in expanding the number of stores because our expansion policy is also bearing fruit during the current economic period.'

First quarter of 2010

Beter Bed Holding was able to realise a 4.6% increase in revenue in the first quarter of 2010 compared to the same period of 2009 due to the introduction of new products, promotional efforts and the continued policy of expansion. This rise was achieved despite continuing reluctance on the part of consumers and the extreme winter conditions, which particularly affected the company's activities in Germany during the first two months of the year. Revenue at comparable stores increased by 1.4% in the first quarter of 2010.

The lagging level of revenue in Germany in January and February owing to the winter weather was largely made up for in March due in part to strong promotional campaigns. As a result revenue remained virtually unchanged in the first quarter of 2010. The positive performance in the Netherlands that began in the fourth quarter of 2009 was continued in the first quarter of 2010. Revenue in the Netherlands increased by 12% in the first quarter of 2010 compared to the same period of 2009. Revenue in Spain decreased by 15% in the first quarter of 2010 in comparison to the first quarter of 2009.

Revenue performance per country in the first quarter of 2010 compared to the first quarter of 2009 was as follows:

The Netherlands	+12%
Germany	0%
Austria	+10%
Switzerland	+14%
Spain	-15%
Belgium	+5%
Poland		+70% (first store opened in December 2008)

26 stores were opened and 18 were closed during the first quarter, bringing the total number of stores at the end of March 2010 to 1,072.

31-12-2009	Closed	Opened	31-3-2010
			871
			84
			52
			32
			21
Slaapgenoten/Dormaël Slaapkamers 12	-	-	12
1,064	18	26	1,072
	862 84 51 34 21	12 1 2 3 -	21 1 3 1 - ______ ______

Financial

Revenue increased by 4.6% in the first quarter of 2010 compared to the first quarter of 2009. Continuously updating the range made it possible to further increase gross profit to 54.8% in the first quarter of 2010 (2009: 53.5%). Total operating expenses rose from € 41.7 million in the first quarter of 2009 to € 42.3 million in the first quarter of 2010 primarily due to the growth in the number of stores from 1,040 at the end of March 2009 to 1,072 at the end of March 2010. Total operating expenses as a percentage of revenue fell from 45.2% in the first quarter of 2009 to 43.8% in the comparable period of 2010. Average costs per store were more than 1% lower in the first quarter of 2010 than in the same period of last year. The company achieved operating profit of € 10.6 million, which is equal to 11% of revenue, in the first quarter of 2010 (2009: € 7.7 million or 8.3% of revenue).

The tax burden decreased from 28% in the first quarter of 2009 to 22% in the first quarter of 2010. This was due to factors including the realisation of tax-deductible losses that caused the tax burden to be € 0.4 million lower in the first quarter of 2010 than in the same period of the previous year. Net profit amounted to € 8.2 million in the first quarter of 2010 compared to € 5.4 million in the first quarter of 2009, representing an increase of 51.3%. Earnings per share totalled € 0.38 in the first quarter of 2010 (first quarter 2009: € 0.25).

The company's net cash position as at 31 March 2010 was € 21.4 million, compared to a negative net cash position of € 2.5 million as at 31 March 2009. The net cash position as at 31 December 2009 was € 15.2 million. Solvency amounted to 54.9% in the first quarter of 2010 compared to 50.5% at year-end 2009 and 52.2% at the end of the first quarter of 2009.

Outlook for second quarter

While consumers remain reluctant to spend and there is still not a robust upturn in consumer confidence, barring unforeseen circumstances, the company expects to achieve an increase in net profit of approximately 50% in the second quarter of 2010 compared to the second quarter of 2009.

Profile

Beter Bed operates in the European bedroom furnishings market. Its activities include retail trade through a total of 1,072 stores at the end of March 2010 that operate via the chains Beter Bed (active in the Netherlands), Matratzen Concord (active in Germany, the Netherlands, Austria, Switzerland, Belgium and Poland), El Gigante del Colchón (active in Spain), BeddenREUS, Dormaël and Slaapgenoten (all three active in the Netherlands) and MAV (active in Germany). Beter Bed Holding is also active in the field of developing and wholesaling branded products in the bedroom furnishings sector in the Netherlands, Belgium, Germany and Spain via its subsidiary DBC International. Beter Bed Holding achieved net revenue of € 361.5 million in 2009. The company has been listed on Euronext Amsterdam since December 1996. The Beter Bed Holding share is included in the Amsterdam Small Cap Index.

Financial Calendar

28 April 2010	Publication of results 1st quarter 2010
28 April 2010	Annual General Meeting of Shareholders
16 July 2010	Publication of Q2 2010 trading statement
27 August 2010	Publication of half-year results 2010
27 August 2010	Analysts' meeting half-year results 2010
29 October 2010	Publication of results 3rd quarter 2010
21 January 2011	Publication of Q4 2010 trading statement

APPENDIX:

• First quarter results 2010

For more information, please contact: Ton Anbeek, Chief Executive Officer Tel. +31 (0)413 338819 / Fax +31 (0)413 338829 / Mob. +31 (0)6 53662838 E-mail: ton.anbeek@beterbed.nl / Website: www.beterbedholding.com

BETER BED HOLDING NV

FIRST QUARTER

RESULTS

2010

Contents

1. Consolidated balance sheet 6
2. Consolidated profit and loss account7
3. Consolidated cash flow statement 8
4. Consolidated overview of movement equity9

1. Consolidated balance sheet

(* EUR 1.000)	31-3-2010	31-3-2009	31-12-2009
Fixed assets	29.559	31.177	29.663
Intangible fixed assets	3.811	3.811	3.811
Financial fixed assets	1.141	582	1.038
Stocks	52.233	48.728	51.467
Debtors	7.090	4.803	5.942
Cash and cash equivalents	23.451	3.170	17.156
TOTAL ASSETS	117.285	92.271	109.077
Equity attributable to equity holders of the parent	64.427	48.164	55.052
Long-term liabilities	8.316	1.748	8.816
Credit institutions	2.000	5.704	2.000
Current liabilities	42.542	36.655	43.209
TOTAL LIABILITIES	117.285	92.271	109.077

2. Consolidated profit and loss account

(* EUR 1.000)

	2010-Q1	2009-Q1
Revenue	96.493	92.223
Cost of sales	(43.589)	(42.912)
Gross profit	52.904	49.311
	54,8%	53,5%
Wage and salary costs Depreciation of tangible fixed assets	19.934 1.917	19.619 1.920
Other operating expenses	20.453	20.118
Total operating expenses	(42.304)	(41.657)
	-43,8%	-45,2%
Operating profit (EBIT)	10.600 11,0%	7.654 8,3%
Financial income and expenses	(89)	(160)
Profit before taxation	10.511	7.494
Income tax expense	(2.327)	(2.085)
Net profit	8.184	5.409
	8,5%	5,9%
Earnings per share in €	0,38	0,25
Diluted earnings per share in €	0,38	0,25

3. Consolidated cash flow statement

(* EUR 1.000)

	2010-Q1		2009-Q1
Cash flow from operating activities
Operating result	10.600		7.654
Financial expenses paid	(89)		(160)
Income taxes paid	(2.480)		(1.423)
Depreciation	1.917		1.920
Costs employee stock options Movements in:	68		85
Stocks	(766)		665
Debtors	(1.148)		1.307
Short term liabilities	(617)		(251)
Other	25		(33)
		7.510		9.764
Cash flow from investing activities
Additions to tangible fixed assets	(1.918)		(1.242)
Disposals of tangible fixed assets	105		85
		(1.813)		(1.157)
Cash flow from financing activities
Repayment of loan	(500)		-
Income from the issue of shares	1.098		-
		598		-
Movements in cash and cash equivalents		6.295		8.607
Cash and cash equivalents at the start of the financial year		17.156		(11.141)
Cash and cash equivalents at the end of the financial year		23.451		(2.534)

4. Consolidated overview of movements equity

(* EUR 1.000)				Reserve for
		Issued	Share	currency	Reva
		share	premium	translation	luation	Other	Retained
	Total	capital	reserve	differences	reserve	reserves	earnings
Balance on 1 January 2009	42.703	436	16.145	130	2.852	1.014	22.126
Net profit for 2009	5.409	-	-	-	-	-	5.409
Other components of comprehensive income 2009	(33)	-	-	(33)	-	-	-
Profit appropriation 2008	-	-	-	-	-	22.126	(22.126)
Interim dividend 2009	-	-	-	-	-	-	-
Share buy-back program	-	-	-	-	-	-	-
Issue of shares	-	-	-	-	-	-	-
Costs of employee stock options	85	-	-	-	-	85	-
Balance on 31 March 2009	48.164	436	16.145	97	2.852	23.225	5.409
Balance on 1 January 2010	55.052	436	16.145	137	2.722	11.694	23.918
Net profit for 2010	8.184	-	-	-	-	-	8.184
Other components of comprehensive income 2010	25	-	-	25	-	-	-
Profit appropriation 2009	-	-	-	-	-	23.918	(23.918)
Interim dividend 2010	-	-	-	-	-	-	-
Issue of shares	1.098	-	-	-	-	1.098	-
Costs of employee stock options	68	-	-	-	-	68	-
Balance on 31 March 2010	64.427	436	16.145	162	2.722	36.778	8.184