Payless September Same-Store Sales Decline 1.1%

Payless ShoeSource, Inc. reported that same-store sales decreased 1.1 percent during the September reporting period, the five weeks ended Saturday, October 4, 2003.

Company sales totaled $269.5 million, a 0.3 percent decrease from $270.4 million during fiscal September of last year.

Total sales for the first eight months of fiscal 2003 were $1.93 billion, a 4.6 percent decrease from $2.02 billion during the similar period in fiscal 2002. Same-store sales decreased 5.3 percent during the first eight months of the fiscal year.

Sales were as follows:

                      SEPTEMBER SALES (DOLLARS IN MILLIONS)
    Fiscal          Fiscal           Percent            Same-Store Sales*
    2003            2002             Increase/          Percent
                                     (Decrease)         Increase/(Decrease)
    $269.5          $270.4           (0.3)%             (1.1)%

                 3RD QUARTER SALES TO-DATE (DOLLARS IN MILLIONS)
    Fiscal          Fiscal           Percent            Same-Store Sales*
    2003            2002             Increase/          Percent
                                     (Decrease)         Increase/(Decrease)
    $502.2          $510.5           (1.6)%             (2.5)%

                     YEAR-TO-DATE SALES (DOLLARS IN BILLIONS)
    Fiscal          Fiscal           Percent            Same-Store Sales*
    2003            2002             Increase/          Percent
                                     (Decrease)         Increase/(Decrease)
    $1.93           $2.02            (4.6)%             (5.3)%

     *Same-store sales represent sales of those stores open during both
      periods.

Sales for the first two months of the third quarter declined compared with the same period last year despite a substantial increase in promotional activity. The aggressive markdown of merchandise, combined with lower sales, is likely to significantly depress earnings in the third quarter.