ShoeSource, Inc. and H.H. Brown Shoe Company, Inc. have signed a multi-year agreement making Payless ShoeSource
the exclusive retailer for the Dexter brand of footwear and accessories in the
United States and the rest of the Western Hemisphere. H.H. Brown will
continue to design, develop and sell Dexter performance bowling and golf
shoes, as well as the exclusive hand-sewn Dexter 1957 Collection hand-crafted
in Maine.

Payless will align the Dexter brand with its new fashion direction and
House of Brands strategy, while working with H.H. Brown to leverage the rich
50-year heritage and strong equity of the brand. Payless said it will launch
the new Dexter line first with a men's collection in select Payless stores for
the 2007 holiday season followed by full men's and women's collections
launched in all stores in spring 2008.

“We are thrilled to add Dexter to our expanding portfolio of well-known
brands including Airwalk®, American Eagle(TM), Tailwind®, Champion®,
Spalding® and Dunkman(TM) now offered at Payless stores,” said Matt Rubel,
chief executive officer and president, Payless ShoeSource. “We're on a
mission to democratize fashion and design in the footwear and accessory
categories to bring shoppers great brands and the latest styles at a great
price. Dexter, with its long-standing image of quality, innovation and style,
will give Payless a brand platform that speaks to a new generation with the
energy, spirit and optimism of American life, style and design.”

Payless will utilize its footwear design team in New York City to design
and develop the new Dexter collections featuring original designs inspired by
the latest trends. The company said it expects the new Dexter collections to
include casual, dress, boots, and fashion athletic footwear styles, as well as

“We are excited to team up with Payless to expand the reach and appeal of
the Dexter lifestyle brand through Payless' significant store chain,” said Jim
Issler, President, CEO, H.H. Brown. “We see a strong fit between Dexter and
Payless — each has tremendous brand awareness and a strong reputation. We
are proud that Dexter is a key brand in the fashion democracy led by Payless,
and that Payless will become a keystone in Dexter's global branding