The Split that Connects

Split the Sheets Overview – August 2005

The Product

• One-half warm polar fleece, the other cool cotton

• Pillow cases one side polar fleece, the other cotton

• “No-feel” seams

• Comfort and choice where one-third of life is spent

WarmFleece

CoolCotton

Why Split the Sheets?

• Solves a common problem

• Hundreds of web sales in first months

• Substantial national attention – media, celebrities, special events

• Personal use or gifts, bridal registries

• Consumers “get it” quickly

• Brings excitement, energy to bedding in-store

• THEY WORK

Benefits• Appeals to broad consumer base

• Safe, simple solution to a very common problem

• Strong word-of-mouth

• Easily understood concept

• Personal use or gifts, including bridal registries

• Exciting new product category for employees to promote

Features• Warm, non-pilling polar fleece

• Cool, quality cotton

• Pre-shrunk

• “No feel” seams

• Both flat and fitted sheets have fleece and cotton combination

• Can be used year-round

• Multiple usage combinations

Split the Sheets –The Company

• Consumer products company founded in 2004, based in Tacoma, WA

• Principals have decades of experience in product development, marketing, sales, distribution

• Company experience includes AT&T Wireless, Tylenol, REI, Weyerhaeuser, Bally Total Fitness, SuperValu

Split the Sheets Connects with:

• Consumers ages 21 and up

• Bedding products industry

• National and regional media

• Celebrities and special events

Connecting with Consumers

“MY LIFE IS SO MUCH BETTER NOW!I received my sheets last week and have been in seventh heaven every night since then. My husband is happy because I’ve gone back to silky nightgowns. I’m spreading the word – these sheets have made my life so much better I want all my friends to reap the rewards of your sheets!”

Boston

Connecting with Consumers

“Love the sheets! I just put them on my bed last night and I did not dream how wonderful they would be! Thanks for making such a wonderful product. I can hardly wait to get to bed tonight.”

Seattle

Connecting with Consumers

“They are the best thing going and have made for a very happy husband who can’t wait to get into his warm side of the bed and hates to get out in the morning. Thanks for a great idea.”

Kensington, CT

Connecting with Consumers

“Your product is so wonderful! We can hardly wait to get to bed at night. You have saved our marriage.”

Los Angeles

Connecting with Consumers

“These sheets are great for both my husband and I. The polar fleece (which is my side) is so incredibly comfortable I cannot wait to get in the bed at night.”

Washington State

Connecting with the Industry

“We’re kicking ourselves that we didn’t think of this.”– senior director of sleep innovation for major national company

“This is a great product.”- buyer for major national retailer

“I’d love to have these in here. It would bring new energy and excitement to what is a pretty boring area.”– store manager for a major national bedding retailer

Connecting with the Industry

Currently featured on Target.comAverage Guest Rating: Five Stars

Connecting with the Media

“I’ve got to talk to Mike about these”- Diane Sawyer to Robin Roberts and Charles Gibson on Good Morning America

“I call them the marriage preservers”– Style Editor for East Coast newspaper

Dozens of news stories on leading broadcast programs and newspapers

Connecting with the Media: Coast-to-Coast Coverage

• Good Morning America• USA Today• Glenn Beck syndicated

radio program• Washington Post• Chicago Tribune• Boston Herald• Miami Herald• Minneapolis Star-Tribune• Detroit News • Florida Today

• Riverside Press-Enterprise• St. Louis Post-Dispatch• Kansas City Star• Milwaukee Journal-Sentinel• Knoxville News-Sentinel• Reno Gazette-Journal• Roanoake Times• Tampa Bay Tribune• Tampa Bay Times• Modesto (CA) Bee• Dozens of others

Initial Sales Throughout the USRanked by States

42 States and District of Columbia Thus Far

3

T15T9

T9 T15

T14 AR

T16

T16 AL

T4

T13T12

T12

1

T16

2

T14

ID

MT ND

SD

T14

T6

T13

MOT16

T16

T16

T910

T7T4 11

5

T12

T15

T7

T16

8

T9

T6

AK – T16HI – T16RI – T14

T14

T16

T14

Sales Data by State and State Rank – 42 States Total

• Alaska T16• Arizona T9• California 2• Colorado T9• Connecticut T9• Delaware T12• District of Columbia T15• Florida T4• Georgia T13• Hawaii T16• Illinois T4• Indiana 11• Iowa T13• Kansas T15• Kentucky T16• Louisiana T16• Maine T16• Maryland T6• Massachusetts T14• Michigan T9• Minnesota T6

• Mississippi T16• Nebraska T14• Nevada T14• New Hampshire T16• New Mexico T15• New Jersey T14• New York 8• North Carolina T12• Ohio T7• Oklahoma T14• Oregon T16• Pennsylvania T7• Rhode Island T14• South Carolina T12• Tennessee T12• Texas 3

• Utah T16• Virginia 5• Washington 1• West Virginia T15• Wisconsin 10• Wyoming T16

Connecting withthe World We’re In

Increasing customization in products– “Gifting society” looking for the new,

latest– More demands on time, tougher to sleep– Greater consumer expectations to meet

specific needs, demands– Current Lexus commercial ends with

couple in bed, one with covers on, one off

Connecting withthe World We’re In

Increasing interest in bedding innovation and improvements– Hotel/motel industry spending millions

on new bedding products, innovations -- and marketing

– Current summer catalog for a major company: 24 of 75 pages are sheets

– 3,710,000 Google links for “bed sheets”

Sleep Inducers• Dual comfort mattresses• Memory foam pillows and

mattresses• Dual weight blankets and

comforters• No-snore strips• Ear plugs• Sound therapy machines• Room darkening blinds• Eye shades• SPLIT THE SHEETS

Why Dual Comfort Sheets?

• We live in a world of customization with ever-increasing customer demands

• Some major national companies are based on dual-comfort products

• Substantial demand and interest is evident

• Consumers always looking for the new, the latest for personal use and gifts

Why Split the Sheets?

• Patent-protected sheet system has made a strong presence in the market place

• Only company that has this patented system

• Range of related new product ideas

• Quality and acceptance: of hundreds of web sales to date, only one return

Why Now?• Consumer demand is strong and

growing• Bedding products and department

store managers and employees are excited

• Media interest is substantial and growing

• Special, high-profile event interest is growing

• Split the Sheets is establishing its retail network now

Special Events

• Split the Sheets has been invited to participate in celebrity events for the Oscars, CMA Fan Fair

Licensing/Logo Opportunities• NFL• NASCAR• MLB• NCAA • Football, • Basketball• Others

Split the Sheets

• Connects with consumer needs, demands

• Connects with media needs• Connects with industry needs

for new product ideas, categories

The Split that Connects