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From Home Furnishing Business

Purple Innovation Board Rejects Unsolicited Proposal from Coliseum Capital

Purple Innovation, Inc., comfort innovation company known for creating the "World's First No Pressure® Mattress," announced that the Special Committee of the Purple Board of Directors has rejected a $4.35 per share unsolicited, non-binding proposal from Coliseum Capital Management, LLC.

The proposal involved acquiring all the outstanding stock of the Company it does not already own. Coliseum, which beneficially owns approximately 44% of Purple's outstanding shares, sent the Proposal to the Company on Sept. 17, 2022.

The Special Committee, which is comprised of disinterested and independent directors, rejected the Proposal in November after conducting a comprehensive review of the Company's long-range strategic plan and other opportunities in consultation with independent financial and legal advisors.

In subsequent discussions with Coliseum, Coliseum was unwilling to offer more than $4.35 per share. The Special Committee continues to believe the Proposal is not in the best interests of the Company and its shareholders.

"The Coliseum proposal undervalues Purple and fails to recognize the strength of our business today as well as our compelling future prospects," said Purple Chairman Paul Zepf.

"We remain confident in our ability to create significantly more value for all shareholders as we execute our long-range strategic plan under the Company's new leadership team."

BMO Capital Markets Corp. is acting as financial advisor and Sidley Austin LLP and Morris, Nichols, Arsht & Tunnell LLP are acting as legal advisors to the Special Committee.



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