RSTW Partners Announces Exit of Mattress Giant Investment with 16.0% IRR.

RSTW Partners exited its investment in Mattress Giant in March 2005, generating a 16.0% IRR over a 4.5 year investment period.  The investment resulted in a cash return of 1.76 times invested capital. Mattress Giant, which was founded in 1983, sells a full selection of bedding products, including mattresses, box springs, headboards and frames.  Mattress Giant is currently the third largest specialty sleep shop and the 36th largest furniture retailer in the United States.  RSTW originally invested $20,000,000 of subordinated debt in Mattress Giant in August 2000.  This investment was held in RSTW Partners III, L.P., a $500,000,000 investment fund.