March Comps Increase 1.4% at Payless

Payless ShoeSource same-store sales increased 1.4% during the March reporting period, the five weeks ended April 2, 2005. Company sales totaled $270.2 million, a 1.4% decrease from $273.9 million during fiscal March of last year. Total sales for the first two months of fiscal 2005 were $452.7 million, a 3.2% increase from $438.6 million during the similar period in fiscal 2004. Same-store sales increased 5.9% during the first two months of the fiscal year.

     Sales were as follows (unaudited):


                        MARCH SALES* (DOLLARS IN MILLIONS)

     Fiscal          Fiscal         Percent         Same-Store Sales***
     2005**          2004**         Increase/       Percent
                                    (Decrease)      Increase/(Decrease)
     $270.2          $273.9         (1.4)%          1.4%


                     YEAR-TO-DATE SALES* (DOLLARS IN MILLIONS)

     Fiscal          Fiscal         Percent         Same-Store Sales***
     2005**          2004**         Increase/       Percent
                                    (Decrease)      Increase/(Decrease)
     $452.7          $438.6         3.2%            5.9%


     *    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
          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.

“Payless ShoeSource remains committed to its long-standing goal to achieve low single-digit positive same-store sales on a consistent basis,” said Steven J. Douglass, Chairman and Chief Executive Officer of Payless ShoeSource, Inc. “Based on quarter-to-date sales, we are on-track to achieve this objective in the first quarter despite the fact that April sales will likely be negatively affected by the shift in Easter to March 2005 from April last year.”