Beter Bed Holding N.V. — Interim / Quarterly Report 2008

Apr 24, 2008

PRESS RELEASE

Uden, The Netherlands, 24 April 2008

Beter Bed first quarter: net profit exceeds forecast

Beter Bed Holding N.V. achieved revenue totalling € 96.0 million in the first quarter of 2008. Despite the fact that Easter fell early this year, this result represents a 4.5% growth in revenue in comparison to the first quarter of 2007 (€ 91.9 million). While operating profit (EBIT) remained virtually unchanged, net profit in the first quarter of 2008 amounted to € 7.9 million compared to € 8.9 million in the same period of last year. This lower net profit is largely attributable to tax effects. The company forecasted net profit of at least € 7 million at the time of the publication of the annual figures in mid-March 2008.

Revenue performance per country was as follows:

The Netherlands	+3%
Germany	+6%
Austria	+14%
Switzerland	+24%
Spain	-7%
Belgium	not available/first store opening in September 2007

A total of 21 stores were opened and 12 stores were closed in the period under review. This brought the total number of stores at the end of March 2008 to 969.

Gross profit improved from 52.2% in the first quarter of 2007 to 53.3% in the first quarter of 2008. This improvement was achieved in spite of increased raw material prices. Total operational expenses rose from € 37.0 million to € 40.4 million owing to the growth in the number of stores. Expenses per store were once again reduced by 3% in the first quarter of 2008 in comparison to the same period of last year. This made it possible for operating profit in the first quarter of 2008 to remain virtually the same at € 10.8 million (first quarter 2007: € 10.9 million) despite the 4.8% decrease in revenue at comparable stores.

Net profit totalled € 7.9 million compared to € 8.9 million in the first quarter of 2007. The difference in net profit was primarily attributable to a € 1 million tax benefit in the first quarter of 2007 due to an option series becoming unconditional. While this effect also occurred in the first quarter of 2008, the total gain amounted to only € 0.2 million during this period.

While consumer behaviour is difficult to predict at present, the company expects, barring unforeseen circumstances, to be able to achieve approximately the same net profit in the second quarter of 2008 as last year. Net profit in the second quarter of 2007 amounted to € 4.3 million. Due to the seasonal pattern in revenue, profit in the second and third quarters is normally lower than in the first and fourth quarters.

The company finalised the share buy back program that was launched on 3 December 2007 on 23 April 2008. As of this date the company has bought back shares for the maximum amount of € 5 million at an average price of € 14.89. This amounts to 335,701 shares being 1.5% of the total number of outstanding shares. Beter Bed Holding intends to redeem these shares.

A possible follow-up will be discussed during the Annual General Meeting that will be held today. Further information will be given upon publication of the interim figures on 29 August 2008.

Profile

Beter Bed operates in the European bedroom furnishings market. Its activities include retail trade through approximately 970 stores at the end of the first quarter of 2008 that operate via the chains Beter Bed (active in the Netherlands), Matratzen Concord (active in Germany, the Netherlands, Austria, Switzerland and Belgium), 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 in Spain via its subsidiary DBC International. Beter Bed Holding achieved net revenue of € 351.2 million in 2007. The company has been listed on Euronext Amsterdam since December 1996. The Beter Bed Holding share is included in the Amsterdam Small cap Index.

APPENDIX:

• First quarter results 2008

For more information, please contact: Frans Geelen, Chief Executive Officer Tel. +31 (0)413 338819 / Fax +31 (0)413 338829 / Mob. +31 (0)6 29565517 E-mail: frans.geelen@beterbed.nl / Website: www.beterbedholding.com

BETER BED HOLDING NV

FIRST QUARTER RESULTS 2008

Contents

1. Consolidated balance sheet 5
2. Consolidated profit and loss account 6
3. Consolidated cashflow statement 7
4. Consolidated overview of movements equity 8

1. Consolidated balance sheet

(* EUR 1.000)	31-3-2008	31-3-2007	31-12-2007
Tangible fixed assets	29.717	24.845	29.688
Intangible fixed assets	3.811	3.811	3.811
Stocks	45.022	44.264	49.763
Debtors, prepayments and accrued
income	5.154	4.894	5.338
Cash and cash equivalents	7.624	19.032	6.560
TOTAL ASSETS	91.328	96.846	95.160
Equity attributable to equity holders of the parent	49.665	52.232	45.066
Long-term liabilities	1.772	1.301	1.772
Short-term bankloans	1.812	1.035	14.065
Current liabilities	38.079	42.278	34.257
TOTAL LIABILITIES	91.328	96.846	95.160

2. Consolidated profit and loss account

(* EUR 1.000)

	2008-Q1	2007-Q1
Revenue	95.991	91.884
Cost of sales	(44.805)	(43.940)
Gross margin	51.186	47.944
	53,3%	52,2%
Staff costs	19.430	17.661
Depreciation of tangible fixed assets	1.840	1.609
Other operating expenses	19.130	17.731
Total operating expenses	(40.400)	(37.001)
	-42,1%	-40,3%
Operating result (EBIT)	10.786	10.943
	11,2%	11,9%
Financial income and expense	(138)	(59)
Profit before tax	10.648	10.884
Income tax expense	(2.722)	(2.012)
Net profit	7.926	8.872
	8,3%	9,7%
Earnings per share €	0,37	0,40
Diluted earnings per share €	0,37	0,40

3. Consolidated cash flow statement

(* EUR 1.000)

	2008-Q1	2007-Q1
Cash flow from/(used in) operating activities
Net group profit	7.926	8.872
Depreciation	1.840	1.609
Movements in:
Stocks	4.741	(3.989)
Debtors	184	13
Creditors	3.822	4.573
Cash flow from/(used in) operating activities	18.513		11.078
Cash flow from/(used in) investing activities
Additions to tangible fixed assets	(1.909)	(2.073)
Disposals of tangible fixed assets	40	39
Cash flow used in investing activities	(1.869)		(2.034)
Cash flow from/(used in) financing activities
Income from the issue of new shares	-	552
Movement in equity because of costs of employee share
options	144	107
Repayment of long-term liabilities	-	(250)
Share buy back program	(3.471)	-
Cash flow from/(used in) financing activities	(3.327)		409
Net cash flow for financial year	13.317		9.453
Cash and cash equivalents at the beginning of the period	(7.505)		8.544
Cash and cash equivalents at the end of the period	5.812		17.997

				4. Consolidated overview of movements equity
--	--	--	--	----------------------------------------------	--

(* EUR 1.000)	total	issued share capital	share premium reserve	reserve for currency translation differences	revaluation reserve	other reserves	retained earnings
Balance on 1 January 2008	45.066	436	16.145	(10)	2.852	(1.929)	27.572
Net profit Q1-2008	7.926	-	-	-	-	-	7.926
Expenses employee options	144	-	-	-	-	144	-
Share buy back program	(3.471)	-	-	-	-	(3.471)	-
Balance on 31 March 2008	49.665	436	16.145	(10)	2.852	(5.256)	35.498

	total	issued share capital	share premium reserve	reserve for currency translation differences	revaluation reserve	other reserves	retained earnings
Balance on 1 January 2007	42.701	433	15.596	-	1.548	1.294	23.830
Net profit Q1-2007	8.872	-	-	-	-	-	8.872
Share issue	552	3	549	-	-	-	-
Expenses employee options	107	-	-	-	-	107	-
Balance on 31 March 2007	52.232	436	16.145	-	1.548	1.401	32.702