Payless Sept. Comps Slip 0.6%

Payless ShoeSource, Inc. reported that comparable store sales decreased 0.6% during fiscal September. Company sales totaled $235.7 million, a 2.2% decrease from $240.9 million during fiscal September of last year.

Sales were as follows (unaudited):

                    SEPTEMBER SALES* (DOLLARS IN MILLIONS)
     Fiscal           Fiscal         Percent          Same-Store
     2005**           2004**         Increase/        Sales***
                                    (Decrease)        Percent Increase/
                                                      (Decrease)
     $235.7           $240.9        (2.2)%            (0.6)%

                   YEAR-TO-DATE SALES* (DOLLARS IN BILLIONS)
     Fiscal           Fiscal         Percent          Same-Store
     2005**           2004**         Increase/        Sales***
                                    (Decrease)        Percent Increase/
                                                      (Decrease)
     $1.84            $1.84          0.2%             2.2%

     * 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.

“Sales results for September were below expectations,” said Matt Rubel, Chief Executive Officer and President. “Looking forward, we are focusing on the consumer and on making an emotional connection through fun, fashionable product, strong brand communications and a more compelling point of sale experience.”

The company remains committed to its goal of achieving low single-digit positive same-store sales growth through more consistent execution of its strategy.

The company closed approximately 130 stores in areas impacted by Hurricane Katrina. To date, 28 of those stores remain closed. Store closings related to Hurricane Rita peaked at approximately 139 stores. Currently, 12 stores impacted by Rita remain closed.