Payless Comps Jump 13.5% in February

Payless ShoeSource same-store sales increased 13.5% during the February reporting period, the four weeks ended February 26, 2005. Company sales totaled $182.5 million, a 10.8% increase from $164.7 million during fiscal February of last year.

     Sales were as follows (unaudited):
                    FEBRUARY SALES* (DOLLARS IN MILLIONS)
     Fiscal          Fiscal         Percent         Same-Store Sales***
     2005**          2004**         Increase/       Percent
                                    (Decrease)      Increase/(Decrease)
     $182.5          $164.7         10.8%           13.5%    
*    Sales from continuing operations.    
**   The fiscal year for operations in the company's Latin American region
         and Japan is based on a December 31 year-end.  Operations in the
         company's Latin American region (177 stores) and Japan are currently
         included in total company results on a one-month lag relative to
         results from other regions.    
***  Same-store sales represent sales of those stores in the United
         States, Canada, Puerto Rico, Guam and Saipan that were open during
         both periods.  Same-store-sales exclude stores in the company's Latin
         American region.

“We are pleased with our strong performance in February, as it suggests that our new tactics are beginning to work,” said Steven J. Douglass, Chairman and Chief Executive Officer. “Our inventory position, trend-right merchandise, effective promotions and compelling messaging all contributed to the strong February performance.”

Looking ahead to March and April, the company remains committed to its long-standing goal to achieve low single-digit positive same-store sales on a consistent basis. In addition, performance in March will likely benefit from the shift in Easter to March 2005 from mid-April last year and April sales will likely be negatively affected by the shift.