Payless June Sales Slip 0.3% Despite 1.7% Comps Gain

Payless ShoeSource, Inc. reported a 1.7% same-store sales increase for the June reporting period, which consists of the five weeks ended July 2, 2005. Company sales totaled $275.8 million, or a 0.3% decrease from $276.6 million during fiscal June of last year.

     Sales were as follows (unaudited):


                      JUNE SALES* (DOLLARS IN MILLIONS)

       Fiscal          Fiscal       Percent          Same-Store Sales***
       2005**          2004**       Increase/        Percent
                                    (Decrease)       Increase/(Decrease)
       $275.8          $276.6       (0.3)%           1.7%


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

       Fiscal          Fiscal       Percent          Same-Store Sales***
       2005**          2004**       Increase/        Percent
                                    (Decrease)       Increase/(Decrease)
       $1.21           $1.20        0.6%             2.8%


    *   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 (178 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.