PAYLESS SHOESOURCE REACHES ONE MILLION PAIR MARK WITH STANLEY (R) FOOTGEAR WORK BOOTS

Boots Meet OSHA Standards, Great for Construction, Light Industrial, and Other Labor-Intensive Occupations TOPEKA, Kan., Dec. 19, 2001 – Payless ShoeSource, Inc. (NYSE: PSS) announced today that it has sold more than one million pair of its new Stanley (R) Footgear work boots after just one year in strategic alliance with Wolverine World Wide.

Payless said the new boot offering, available today at most of the company’s more than 4,900 stores across North America and on payless.com, is a remarkable work boot line because it offers high-quality features like durability, comfort, and safety at prices ranging from $34.99 to $54.99.

“As a result of this strategic alliance, Payless is able to provide its customers with a long-lasting, comfortable work boot that will withstand the toughest work conditions out there – all at a phenomenal Payless value price,” said Bill Wagner, senior vice president and general merchandise manager for men’s products at Payless ShoeSource.

According to Wagner, the steel-toe versions in the new line are designed to meet OSHA standards for foot safety and protection. He said the entire boot line is well-suited for construction, light industrial, and other labor- intensive occupations and noted that the boots are also popular among younger people who appreciate the boots’ fashion features.

Boot Features

The line is offered in two primary styles including the traditional work boot (offered in black, brown and stone) and a hiker boot (offered in black). Both styles have steel toes, oil- and slip-resistant outsoles, and are made of a variety of high-quality materials, including full- grain leather. Another quality feature is the use of the ComfortWorks (TM) system, a patented four-layered comfort technology that enables superior moisture control, breathability, advanced cushioning, and extra shock absorption.

The traditional work boot styles also have the Goodyear (R) Welt construction, which provides extensive durability and prevents sole gaping. Payless said it is currently testing more than 20 additional styles to expand the new line, with a focus on soft toe styles.

About the Alliance

According to John Haugh, chief marketing officer and senior vice president of business development at Payless ShoeSource, Stanley’s excellent reputation for high-quality tools, hardware and other innovative industrial products combined with Wolverine’s work footwear expertise offers Payless customers an exceptional value on performance work footwear.

“Our research told us that men – our primary target for the boot — take their work boots very seriously. They wanted a high-quality work boot at a Payless value,” said Haugh. “We were able to respond to this need through this strategic alliance that combines the reputation and experience of Wolverine, the strong brand recognition of Stanley, and the infrastructure, consumer reach and value principles of Payless. The results are overwhelming with a million-plus pairs sold, availability today in most of our stores, and plans to further expand the line.”

Payless ShoeSource, Inc. is North America’s largest family footwear retailer. The company operates a total of 4,978 stores offering quality footwear and accessories at affordable prices. In addition, customers can buy shoes over the Internet through Payless.com (SM) at http://www.payless.com. Wolverine World Wide Inc (NYSE:WWW) manufactures and markets more than 36 million pairs of footwear annually in over 130 countries around the world through a powerful portfolio of brands.

The Stanley Works (NYSE: “SWK”) is a worldwide supplier of tools, hardware, doors, fastening systems, access technology, storage systems and hydraulic attachments for professional, industrial and consumer use. The company’sinnovative products help people utilize their skills, express their creativity and realize their visions on work sites around the globe.

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Stanley is a registered trademark of The Stanley Works, ComfortWorks is a trademark of Wolverine World Wide, Goodyear is a registered trademark of Goodyear Tire & Rubber Company, and Payless.com is a service mark of Payless ShoeSource Worldwide, Inc. ComfortWorks technology is owned by Payless ShoeSource, Inc.