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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0000014707-02-000016.txt : 20020614
<SEC-HEADER>0000014707-02-000016.hdr.sgml : 20020614
<ACCEPTANCE-DATETIME>20020614101755
ACCESSION NUMBER:		0000014707-02-000016
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20020504
FILED AS OF DATE:		20020614

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BROWN SHOE CO INC/
		CENTRAL INDEX KEY:			0000014707
		STANDARD INDUSTRIAL CLASSIFICATION:	FOOTWEAR, (NO RUBBER) [3140]
		IRS NUMBER:				430197190
		STATE OF INCORPORATION:			NY
		FISCAL YEAR END:			0130

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-02191
		FILM NUMBER:		02678825

	BUSINESS ADDRESS:	
		STREET 1:		8300 MARYLAND AVE
		STREET 2:		P O BOX 29
		CITY:			ST LOUIS
		STATE:			MO
		ZIP:			63105
		BUSINESS PHONE:		3148544000

	MAIL ADDRESS:	
		STREET 1:		P O BOX 29
		CITY:			ST LOUIS
		STATE:			MO
		ZIP:			63166

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BROWN GROUP INC
		DATE OF NAME CHANGE:	19920703

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BROWN SHOE CO INC
		DATE OF NAME CHANGE:	19720327
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>bs10q1st02.htm
<DESCRIPTION>FORM 10-Q
<TEXT>
<!doctype html public "-//w3c//dtd html 4.0 transitional//en">
<html>
<head>
   </head>
<body>

<hr ALIGN=LEFT NOSHADE WIDTH="100%">
<center>
<p><b><font face="Arial"><font size=+2>UNITED STATES</font></font></b>
<p><b><font face="Arial"><font size=+2>SECURITIES AND EXCHANGE COMMISSION</font></font></b>
<p><b><font face="Arial"><font size=+1>WASHINGTON, D.C. 20549</font></font></b></center>

<p>
<hr SIZE=1 NOSHADE WIDTH="37%">
<center>
<p><b><font face="Arial"><font size=+2>FORM 10-Q</font></font></b></center>

<p><font face="Arial"><font size=-1>(Mark One)</font></font>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td VALIGN=TOP WIDTH="6%" HEIGHT="6"><font face="Arial">[X]</font></td>

<td VALIGN=TOP WIDTH="94%" HEIGHT="6"><font face="Arial">Quarterly report
pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</font>
<p><font face="Arial">For the quarterly period ended <b><u>May 4, 2002</u></b></font></td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="6%" HEIGHT="6"></td>

<td VALIGN=TOP WIDTH="94%" HEIGHT="6"></td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="6%" HEIGHT="6"><font face="Arial">[&nbsp; ]</font></td>

<td VALIGN=TOP WIDTH="94%" HEIGHT="6"><font face="Arial">Transition report
pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</font>
<p><font face="Arial">For the transition period from&nbsp; _____________&nbsp;&nbsp;&nbsp;&nbsp;
to _____________</font></td>
</tr>
</table>

<center>
<p>
<hr SIZE=1 NOSHADE WIDTH="37%">
<br><b>Commission file number 1-2191</b>
<br>
<hr SIZE=1 NOSHADE WIDTH="37%"></center>

<p><br>
<table BORDER=0 CELLSPACING=0 CELLPADDING=7 WIDTH="100%" >
<tr>
<td VALIGN=TOP COLSPAN="2">
<center><b><font face="Arial"><font size=+3>BROWN SHOE COMPANY, INC.</font></font></b>
<br><i><font size=-2><font face="Arial">(</font>Exact name of registrant
as specified in its charter)</font></i></center>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="50%">&nbsp;</td>

<td VALIGN=TOP WIDTH="50%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="50%">
<center><b><font face="Arial"><font size=+1>New York</font></font></b>
<br><i><font face="Arial"><font size=-2>(State or other jurisdiction</font></font></i>
<br><i><font face="Arial"><font size=-2>of incorporation or organization)</font></font></i></center>
</td>

<td VALIGN=TOP WIDTH="50%">
<center><b><font face="Arial"><font size=+1>43-0197190</font></font></b>
<br><i><font face="Arial"><font size=-2>(IRS Employer Identification Number)</font></font></i></center>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="50%">&nbsp;</td>

<td VALIGN=TOP WIDTH="50%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="50%">
<center><b><font face="Arial"><font size=+1>8300 Maryland Avenue</font></font></b>
<br><b><font face="Arial"><font size=+1>St. Louis, Missouri</font></font></b>
<br><i><font face="Arial"><font size=-2>(Address of principal executive
offices)</font></font></i></center>
</td>

<td VALIGN=TOP WIDTH="50%">
<center><b><font face="Arial"><font size=+1>63105</font></font></b>
<br><i><font face="Arial"><font size=-2>(Zip Code)</font></font></i></center>
</td>
</tr>

<tr>
<td VALIGN=TOP COLSPAN="2">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP COLSPAN="2">
<center><b><font face="Arial"><font size=+1>(314) 854-4000</font></font></b>
<br><i><font face="Arial"><font size=-2>(Registrant's telephone number,
including area code)</font></font></i></center>
</td>
</tr>

<tr>
<td VALIGN=TOP COLSPAN="2">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP COLSPAN="2">
<center><b><font face="Arial"><font size=+1>N/A</font></font></b>
<br><i><font face="Arial"><font size=-2>(Former name, former address and
former fiscal year, if changed since last report)</font></font></i></center>
</td>
</tr>
</table>

<p><font face="Arial"><font size=+0>&nbsp;&nbsp; Indicate by check mark
whether the registrant (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements
for the past 90 days.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Yes [x]&nbsp;&nbsp; No [&nbsp; ]</font></font>
<p><font face="Arial"><font size=+0>&nbsp;&nbsp; As of June 1, 2002, 17,613,467
shares of the registrant's common stock were outstanding.</font></font>
<p>
<hr ALIGN=RIGHT NOSHADE WIDTH="100%">
<center>
<p><b><font face="Arial">BROWN SHOE COMPANY, INC.</font></b>
<p><b><font face="Arial">CONDENSED CONSOLIDATED BALANCE SHEETS</font></b></center>

<p><i><font face="Arial"><font size=-1>(Thousands)</font></font></i>
<br>&nbsp;
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td VALIGN=TOP WIDTH="49%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="5" WIDTH="31%">
<center><font face="Arial">(Unaudited)</font>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></center>
</td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%">&nbsp;</td>

<td VALIGN=TOP WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="49%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="14%">
<center><font face="Arial">May 4,&nbsp;</font>
<br><font face="Arial">2002</font>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></center>
</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%">
<center><font face="Arial">May 5,</font>
<br><font face="Arial">2001</font>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></center>
</td>

<td VALIGN=BOTTOM WIDTH="5%"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%">
<center><font face="Arial">February 2,</font>
<br><font face="Arial">2002</font>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></center>
</td>

<td VALIGN=TOP WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="49%"><b><u><font face="Arial">ASSETS</font></u></b></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=TOP WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="49%"><font face="Arial">Current Assets</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=TOP WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="49%"><font face="Arial">&nbsp;&nbsp; Cash and
Cash Equivalents</font></td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial">$</font></td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">26,609</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">
<div align=right><font face="Arial">$</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">35,971</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial">$</font></td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">22,712</font></div>
</td>

<td VALIGN=TOP WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="49%"><font face="Arial">&nbsp;&nbsp; Receivables</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">61,407</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">54,605</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">68,305</font></div>
</td>

<td VALIGN=TOP WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="49%"><font face="Arial">&nbsp;&nbsp; Inventories</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">360,545</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">452,170</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">396,227</font></div>
</td>

<td VALIGN=TOP WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="49%"><font face="Arial">Other Current Assets</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">35,565</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">20,375</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">39,666</font></div>
</td>

<td VALIGN=TOP WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="49%"><font face="Arial">&nbsp;Total Current Assets</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">484,126</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">563,121</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">526,910</font></div>
</td>

<td VALIGN=TOP WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="49%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="12%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="5%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="8"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="49%"><font face="Arial">Other Assets</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">73,213</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">64,949</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">69,192</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="49%"><font face="Arial">Goodwill and Intangible
Assets, Net</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">19,124</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">21,473</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">19,050</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="49%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="12%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="5%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="8"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="49%"><font face="Arial">Property and Equipment</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">253,728</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">249,821</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">251,650</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="49%"><font face="Arial">&nbsp;&nbsp; Allowances
for Depreciation</font>
<br><font face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and Amortization</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">(169,467</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="3%"><font face="Arial">)</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">(159,683</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="5%"><font face="Arial">)</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">(165,904</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial">)</font></td>
</tr>

<tr>
<td></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="49%"></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">84,261</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">90,138</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">85,746</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="49%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial">$</font></td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">660,724</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial">$</font></td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">739,681</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial">$</font></td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">700,898</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="49%" HEIGHT="8"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="14%" HEIGHT="8">
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="8"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%" HEIGHT="8">
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="5%" HEIGHT="8"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%" HEIGHT="8">
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="8"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="49%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="12%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="5%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="8"></td>
</tr>

<tr>
<td VALIGN=BOTTOM COLSPAN="2" WIDTH="51%"><b><u><font face="Arial">LIABILITIES
AND SHAREHOLDERS' EQUITY</font></u></b></td>

<td VALIGN=BOTTOM WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="49%"><font face="Arial">Current Liabilities</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="49%"><font face="Arial">&nbsp;&nbsp; Notes Payable</font></td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial">$</font></td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">50,700</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial">$</font></td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">75,000</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial">$</font></td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">64,250</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="49%"><font face="Arial">&nbsp;&nbsp; Accounts
Payable</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">97,872</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">128,469</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">122,360</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="49%"><font face="Arial">&nbsp;&nbsp; Accrued Expenses</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">88,927</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">76,556</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">85,743</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="49%"><font face="Arial">&nbsp;&nbsp; Income Taxes</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">3,009</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">3,345</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">550</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="49%"><font face="Arial">&nbsp;&nbsp; Current Maturities
of Long-Term Debt</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">13,550</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">25,000</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">28,550</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="49%"><font face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Total Current Liabilities</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">254,058</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">308,370</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">301,453</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="49%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="12%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="5%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="8"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="49%"><font face="Arial">Long-Term Debt and Capitalized</font>
<br><font face="Arial">&nbsp;&nbsp; Lease Obligations</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">123,491</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">137,039</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">123,491</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="49%"><font face="Arial">Other Liabilities</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">19,021</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">21,138</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">19,298</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="49%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="12%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="5%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="8"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="8"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="49%"><font face="Arial">Shareholders' Equity</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="49%"><font face="Arial">&nbsp;&nbsp; Common Stock</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">65,859</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">65,434</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">65,564</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="49%"><font face="Arial">&nbsp;&nbsp; Additional
Capital</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">48,742</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">47,488</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">47,948</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="49%"><font face="Arial">&nbsp;&nbsp; Unamortized
Value of Restricted Stock</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">(2,060</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="3%"><font face="Arial">)</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">(2,655</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="5%"><font face="Arial">)</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">(1,909</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial">)</font></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="49%"><font face="Arial">&nbsp;&nbsp; Accumulated
Other Comprehensive Loss</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">(9,303</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="3%"><font face="Arial">)</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">(7,999</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="5%"><font face="Arial">)</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">(9,975</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial">)</font></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="49%"><font face="Arial">&nbsp;&nbsp; Retained
Earnings</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">160,916</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">170,866</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">155,028</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="49%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">264,154</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">273,134</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">256,656</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="49%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial">$</font></td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">660,724</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial">$</font></td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">739,681</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial">$</font></td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">700,898</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="49%">&nbsp;</td>

<td VALIGN=TOP COLSPAN="2" WIDTH="14%">
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP COLSPAN="2" WIDTH="13%">
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="5%">&nbsp;</td>

<td VALIGN=TOP COLSPAN="2" WIDTH="13%">
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="2%">&nbsp;</td>
</tr>
</table>

<p><i><font face="Arial"><font size=+0>See Notes to Condensed Consolidated
Financial Statements.</font></font></i>
<center>
<p><i><font face="Arial"><font size=+0>2</font></font></i>
<br>
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%">
<p><b><font face="Arial">BROWN SHOE COMPANY, INC.</font></b>
<p><b><font face="Arial">CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS</font></b>
<p><b>(Unaudited)</b></center>

<p><i><font face="Arial"><font size=+0>(Thousands, except per share)</font></font></i>
<br>&nbsp;
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td VALIGN=TOP WIDTH="40%" HEIGHT="16"></td>

<td VALIGN=BOTTOM COLSPAN="5" WIDTH="27%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="16"></td>

<td VALIGN=BOTTOM COLSPAN="5" WIDTH="28%" HEIGHT="16">
<center><font face="Arial">Thirteen Weeks Ended</font></center>
</td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="16"></td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="40%" HEIGHT="4"></td>

<td VALIGN=BOTTOM COLSPAN="5" WIDTH="27%" HEIGHT="4"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="4"></td>

<td VALIGN=BOTTOM COLSPAN="5" WIDTH="28%" HEIGHT="4">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="4"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%">
<center><font face="Arial">May 4,&nbsp;</font>
<br><font face="Arial">2002</font></center>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">
<center><font face="Arial">May 5,</font>
<br><font face="Arial">2001</font></center>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%" HEIGHT="16"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="16"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%" HEIGHT="16">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="16">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="16"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="12%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="16"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%" HEIGHT="16"><font face="Arial">Net Sales</font></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="12%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"><font face="Arial">$</font></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16">
<div align=right><font face="Arial">446,738</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"><font face="Arial">$</font></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16">
<div align=right><font face="Arial">436,138</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="16"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%" HEIGHT="16"><font face="Arial">Cost of Goods
Sold</font></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="12%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16">
<div align=right><font face="Arial">266,132</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16">
<div align=right><font face="Arial">261,090</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="16"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%" HEIGHT="4"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%" HEIGHT="4"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="4"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="4"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="4"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%" HEIGHT="4">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="4"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="4">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="4"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%" HEIGHT="16"><font face="Arial">Gross Profit</font></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="12%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16">
<div align=right><font face="Arial">180,606</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16">
<div align=right><font face="Arial">175,048</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="16"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="12%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="16"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%" HEIGHT="16"><font face="Arial">Selling &amp;
Administrative Expenses</font></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="12%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16">
<div align=right><font face="Arial">165,561</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16">
<div align=right><font face="Arial">160,049</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="16"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%" HEIGHT="16"><font face="Arial">Interest Expense</font></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="12%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16">
<div align=right><font face="Arial">3,628</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16">
<div align=right><font face="Arial">5,517</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="16"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%" HEIGHT="16"><font face="Arial">Other Expense</font></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="12%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16">
<div align=right><font face="Arial">284</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16">
<div align=right><font face="Arial">55</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="16"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%" HEIGHT="16"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="16"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%" HEIGHT="16">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="16">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="16"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%" HEIGHT="16"><font face="Arial">Earnings Before
Income Taxes</font></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="12%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16">
<div align=right><font face="Arial">11,133</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16">
<div align=right><font face="Arial">9,427</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="16"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="12%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="16"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%" HEIGHT="16"><font face="Arial">Income Tax
Provision</font></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="12%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16">
<div align=right><font face="Arial">3,500</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16">
<div align=right><font face="Arial">3,016</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="16"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%" HEIGHT="16"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="16"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%" HEIGHT="16">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="16">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="16"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%" HEIGHT="16"><font face="Arial">NET EARNINGS</font></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="12%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"><font face="Arial">$</font></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16">
<div align=right><font face="Arial">7,633</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"><font face="Arial">$</font></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16">
<div align=right><font face="Arial">6,411</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="16"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%" HEIGHT="2"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="2"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%" HEIGHT="2">
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="2">
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="2"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="12%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="16"></td>
</tr>

<tr>
<td VALIGN=BOTTOM COLSPAN="3" WIDTH="53%"><font face="Arial">BASIC EARNINGS
PER COMMON SHARE</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial">$</font></td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">.44</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial">$</font></td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">.37</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%" HEIGHT="16"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="16"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%" HEIGHT="16">
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="16">
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="16"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="12%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="16"></td>
</tr>

<tr>
<td VALIGN=BOTTOM COLSPAN="3" WIDTH="53%"><font face="Arial">DILUTED EARNINGS
PER COMMON SHARE</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial">$</font></td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">.43</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial">$</font></td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">.36</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%" HEIGHT="4"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%" HEIGHT="4"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="4"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="4"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="4"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%" HEIGHT="4">
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="4"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="4">
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="4"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="12%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="16"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%"><font face="Arial">DIVIDENDS PER COMMON SHARE</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial">$</font></td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">.10</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial">$</font></td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial">.10</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%" HEIGHT="16"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="16"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%" HEIGHT="16">
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="16"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="16">
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="16"></td>
</tr>
</table>

<p><i><font face="Arial"><font size=+0>See Notes to Condensed Consolidated
Financial Statements.</font></font></i>
<center>
<p><i><font face="Arial"><font size=+0>3</font></font></i>
<br>
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%">
<p><b><font face="Arial">BROWN SHOE COMPANY, INC.</font></b>
<p><b><font face="Arial">CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS</font></b>
<p><b>(Unaudited)</b></center>

<p><br>
<br>
<br>
<br>
<br>
<br>
<p><i>(Thousands)</i>
<center><table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td VALIGN=BOTTOM WIDTH="60%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="5" WIDTH="38%">
<center><font face="Arial">Thirteen Weeks Ended</font></center>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="5" WIDTH="38%" HEIGHT="2">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="2"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font face="Arial">&nbsp;</font></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="16%">
<center><font face="Arial">May 4,</font>
<br><font face="Arial">2002</font></center>
</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="14%">
<center><font face="Arial">May 5,</font>
<br><font face="Arial">2001</font></center>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="16%" HEIGHT="2">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="8%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="14%" HEIGHT="2">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="2"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font face="Arial">Operating Activities:</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font face="Arial">&nbsp;&nbsp; Net earnings</font></td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial">$</font></td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font face="Arial">7,633</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial">$</font></td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">6,411</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font face="Arial">&nbsp;&nbsp; Adjustments
to Reconcile Net Earnings to&nbsp;</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Cash Provided (Used) by Operating Activities:</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Depreciation and amortization</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font face="Arial">5,834</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">6,086</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Changes in Operating Assets and Liabilities:</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Receivables</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font face="Arial">6,898</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">9,798</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Inventories</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font face="Arial">35,682</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">(24,340</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial">)</font></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Trade payables and accrued expenses</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font face="Arial">(21,304</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="8%"><font face="Arial">)</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">(12,816</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial">)</font></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Other, net</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font face="Arial">3,372</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">663</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="14%" HEIGHT="6">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="8%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="12%" HEIGHT="6">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font face="Arial">Net Cash Provided (Used)
by Operating Activities</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font face="Arial">38,115</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">(14,198</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial">)</font></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font face="Arial">Investing Activities:</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font face="Arial">&nbsp;&nbsp; Capital expenditures</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font face="Arial">(4,422</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="8%"><font face="Arial">)</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">(6,147</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial">)</font></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font face="Arial">&nbsp;&nbsp; Other</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font face="Arial">-</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">101</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="16%" HEIGHT="2">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="8%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="14%" HEIGHT="2">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="2"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="14%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="8%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="12%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font face="Arial">Net Cash Used by Investing
Activities</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font face="Arial">(4,422</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="8%"><font face="Arial">)</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">(6,046</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial">)</font></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font face="Arial">Financing Activities:</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font face="Arial">&nbsp;&nbsp; Increase
(decrease) in short-term notes payable</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font face="Arial">(13,550</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="8%"><font face="Arial">)</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">8,500</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font face="Arial">&nbsp;&nbsp; Principal
payments of long-term debt</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font face="Arial">(15,000</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="8%"><font face="Arial">)</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">-</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font face="Arial">&nbsp;&nbsp; Payments
for purchase of treasury stock</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font face="Arial">-</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">(2,198</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial">)</font></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font face="Arial">&nbsp;&nbsp; Proceeds
from stock options exercised</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font face="Arial">773</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">1,169</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font face="Arial">&nbsp;&nbsp; Debt issuance
costs</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font face="Arial">(265</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="8%"><font face="Arial">)</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">-</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font face="Arial">&nbsp;&nbsp; Dividends
paid</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font face="Arial">(1,754</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="8%"><font face="Arial">)</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">(1,747</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial">)</font></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="16%" HEIGHT="2">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="8%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="14%" HEIGHT="2">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="2"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="14%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="8%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="12%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font face="Arial">Net Cash Provided (Used)
by Financing Activities</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font face="Arial">(29,796</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="8%"><font face="Arial">)</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">5,724</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="16%" HEIGHT="2">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="8%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="14%" HEIGHT="2">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="2"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font face="Arial">Increase (Decrease) in
Cash and Cash Equivalents</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font face="Arial">3,897</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">(14,520</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial">)</font></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font face="Arial">Cash and Cash Equivalents
at Beginning of Period</font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font face="Arial">22,712</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">50,491</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="60%" HEIGHT="4"></td>

<td VALIGN=TOP COLSPAN="2" WIDTH="16%" HEIGHT="4">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="8%" HEIGHT="4"></td>

<td VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="4">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="2%" HEIGHT="4"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font face="Arial">Cash and Cash Equivalents
at End of Period</font></td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial">$</font></td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font face="Arial">26,609</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial">35,971</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="60%" HEIGHT="2"></td>

<td VALIGN=TOP COLSPAN="2" WIDTH="16%" HEIGHT="2">
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="8%" HEIGHT="2"></td>

<td VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="2">
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="2%" HEIGHT="2"></td>
</tr>
</table></center>

<p><i><font face="Arial"><font size=+0>See Notes to Condensed Consolidated
Financial Statements.</font></font></i>
<center>
<p>4
<br>
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%"></center>

<p><b><font face="Arial"><font size=+1>BROWN SHOE COMPANY, INC.</font></font></b>
<br><b><font face="Arial"><font size=+1>NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS</font></font></b>
<br>&nbsp;
<p><u><font face="Arial">Note 1 - Basis of Presentation</font></u>
<p>The accompanying condensed consolidated financial statements have been
prepared in accordance with the instructions to Form 10-Q and reflect all
adjustments which management believes necessary (which include only normal
recurring accruals) to present fairly the Company's financial condition,
results of operations, and cash flows. These statements, however, do not
include all information and footnotes necessary for a complete presentation
of the Company's financial position, results of operations and cash flows
in conformity with accounting principles generally accepted in the United
States.
<p>The Company's business is subject to seasonal influences, and interim
results may not necessarily be indicative of results which may be expected
for any other interim period or for the year as a whole.
<p>For further information refer to the consolidated financial statements
and footnotes included in the Company's Annual Report on Form 10-K for
the year ended February 2, 2002.
<p><u>Note 2 - Earnings Per Share</u>
<p>The following table sets forth the computation of basic and diluted
earnings per common share for the periods ended May 4, 2002 and May 5,
2001 (000's, except per share data):
<br>&nbsp;
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td VALIGN=BOTTOM WIDTH="38%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="5" WIDTH="27%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="6%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="5" WIDTH="28%">
<center><font face="Arial"><font size=-1>Thirteen Weeks Ended</font></font></center>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="38%" HEIGHT="1"></td>

<td VALIGN=BOTTOM COLSPAN="5" WIDTH="27%" HEIGHT="1"></td>

<td VALIGN=BOTTOM WIDTH="6%" HEIGHT="1"></td>

<td VALIGN=BOTTOM COLSPAN="5" WIDTH="28%" HEIGHT="1">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="1"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="38%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="6%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">
<center><font face="Arial"><font size=-1>May 4,</font></font>
<br><font face="Arial"><font size=-1>2002</font></font></center>
</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">
<center><font face="Arial"><font size=-1>May 5,</font></font>
<br><font face="Arial"><font size=-1>2001</font></font></center>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="38%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="2"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="2"></td>

<td VALIGN=BOTTOM WIDTH="6%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="2">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="4%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="2">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="2"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="38%"><font face="Arial"><font size=-1>Numerator:</font></font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="6%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="38%"><font face="Arial"><font size=-1>&nbsp;&nbsp;
Net earnings - Basic and Diluted</font></font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="6%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial"><font size=-1>$</font></font></td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial"><font size=-1>7,633</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">
<div align=right><font face="Arial"><font size=-1>$</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial"><font size=-1>6,411</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="38%" HEIGHT="9"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="9"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="9"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="9"></td>

<td VALIGN=BOTTOM WIDTH="6%" HEIGHT="9"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="9">
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="4%" HEIGHT="9"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="9">
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="9"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="38%"><font face="Arial"><font size=-1>Denominator:</font></font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="6%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM COLSPAN="3" WIDTH="50%"><font face="Arial"><font size=-1>&nbsp;&nbsp;
Weighted average shares outstanding - Basic</font></font></td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="6%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial"><font size=-1>17,284</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial"><font size=-1>17,145</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="38%"><font face="Arial"><font size=-1>&nbsp;&nbsp;
Effect of potentially dilutive securities</font></font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="6%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial"><font size=-1>424</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial"><font size=-1>501</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td></td>

<td></td>

<td></td>

<td></td>

<td></td>

<td></td>

<td></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td></td>
</tr>

<tr>
<td VALIGN=BOTTOM COLSPAN="3" WIDTH="50%"><font face="Arial"><font size=-1>&nbsp;&nbsp;
Weighted average shares outstanding - Diluted</font></font></td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="6%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial"><font size=-1>17,708</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial"><font size=-1>17,646</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="38%" HEIGHT="9"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="9"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="9"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="9"></td>

<td VALIGN=BOTTOM WIDTH="6%" HEIGHT="9"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="9">
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="4%" HEIGHT="9"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="9">
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="9"></td>
</tr>

<tr>
<td></td>

<td></td>

<td></td>

<td></td>

<td></td>

<td></td>

<td></td>

<td></td>

<td></td>

<td></td>

<td></td>

<td></td>

<td></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="38%"><font face="Arial"><font size=-1>Basic earnings
per common share</font></font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="6%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial"><font size=-1>$</font></font></td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial"><font size=-1>.44</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial"><font size=-1>$</font></font></td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial"><font size=-1>.37</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="38%" HEIGHT="9"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="9"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="9"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="9"></td>

<td VALIGN=BOTTOM WIDTH="6%" HEIGHT="9"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="9">
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="4%" HEIGHT="9"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="9">
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="9"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="38%" HEIGHT="2"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="2"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="2"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="2"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="2"></td>

<td VALIGN=BOTTOM WIDTH="10%" HEIGHT="2"></td>

<td VALIGN=BOTTOM WIDTH="6%" HEIGHT="2"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="2"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="2"></td>

<td VALIGN=BOTTOM WIDTH="4%" HEIGHT="2"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="2"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="2"></td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="2"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="38%"><font face="Arial"><font size=-1>Diluted
earnings per common share</font></font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="6%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial"><font size=-1>$</font></font></td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial"><font size=-1>.43</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial"><font size=-1>$</font></font></td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial"><font size=-1>.36</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="38%" HEIGHT="2"></td>

<td VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="2"></td>

<td VALIGN=TOP WIDTH="3%" HEIGHT="2"></td>

<td VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="2"></td>

<td VALIGN=TOP WIDTH="6%" HEIGHT="2"></td>

<td VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="2">
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="4%" HEIGHT="2"></td>

<td VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="2">
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="1%" HEIGHT="2"></td>
</tr>
</table>

<center>
<p><font face="Arial">5</font>
<br>
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%"></center>

<p><u><font face="Arial">Note 3 - Comprehensive Income</font></u>
<p>Comprehensive Income includes all changes in equity except those resulting
from investments by shareholders and distributions to shareholders.
<p>The following table sets forth the reconciliation from Net Earnings
to Comprehensive Income for the periods ended May 4, 2002 and May 5, 2001
(000's):
<br>&nbsp;
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td VALIGN=BOTTOM WIDTH="41%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="5" WIDTH="26%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="5" WIDTH="29%">
<center><font face="Arial"><font size=+0>Thirteen Weeks Ended</font></font></center>
</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="41%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="5" WIDTH="26%" HEIGHT="2"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="5" WIDTH="29%" HEIGHT="2">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="2%" HEIGHT="2"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="41%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="11%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="14%">
<center><font face="Arial"><font size=+0>May 4,</font></font>
<br><font face="Arial"><font size=+0>2002</font></font></center>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%">
<center><font face="Arial"><font size=+0>May 5,</font></font>
<br><font face="Arial"><font size=+0>2001</font></font></center>
</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="41%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="2"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="11%" HEIGHT="2"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="14%" HEIGHT="2">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%" HEIGHT="2">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="2%" HEIGHT="2"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="41%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="10%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="10%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="12%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="10%" HEIGHT="6"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="2%" HEIGHT="6"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="41%"><font face="Arial"><font size=+0>Net Earnings</font></font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial"><font size=+0>$</font></font></td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial"><font size=+0>7,633</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%"><font face="Arial"><font size=+0>$</font></font></td>

<td VALIGN=BOTTOM WIDTH="10%">
<div align=right><font face="Arial"><font size=+0>6,411</font></font></div>
</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="41%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="10%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="10%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="12%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="10%" HEIGHT="6"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="2%" HEIGHT="6"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="41%"><font face="Arial"><font size=+0>Other Comprehensive
Income:</font></font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="41%"><font face="Arial"><font size=+0>Foreign
Currency Translation Adjustment</font></font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial"><font size=+0>621</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">
<div align=right><font face="Arial"><font size=+0>(906</font></font></div>
</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="2%"><font face="Arial"><font size=+0>)</font></font></td>
</tr>

<tr>
<td VALIGN=BOTTOM COLSPAN="3" WIDTH="53%"><font face="Arial"><font size=+0>Unrealized
Gains on Derivative Instruments</font></font></td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial"><font size=+0>51</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">
<div align=right><font face="Arial"><font size=+0>45</font></font></div>
</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="41%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="2"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="11%" HEIGHT="2"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="14%" HEIGHT="2">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%" HEIGHT="2">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="2%" HEIGHT="2"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="41%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial"><font size=+0>672</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="11%">
<div align=right><font face="Arial"><font size=+0>(861</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial"><font size=+0>)</font></font></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="41%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="10%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="10%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="12%" HEIGHT="6">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="6">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="11%" HEIGHT="6">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="41%"><font face="Arial"><font size=+0>Comprehensive
Income</font></font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial"><font size=+0>$</font></font></td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial"><font size=+0>8,305</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%"><font face="Arial"><font size=+0>$</font></font></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="11%">
<div align=right><font face="Arial"><font size=+0>5,550</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="41%" HEIGHT="2"></td>

<td VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="2"></td>

<td VALIGN=TOP WIDTH="3%" HEIGHT="2"></td>

<td VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="2"></td>

<td VALIGN=TOP WIDTH="3%" HEIGHT="2"></td>

<td VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="2">
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="2%" HEIGHT="2"></td>

<td VALIGN=TOP COLSPAN="2" WIDTH="13%" HEIGHT="2">
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP COLSPAN="2" WIDTH="2%" HEIGHT="2"></td>
</tr>
</table>

<p><u><font face="Arial">Note 4 - Business Segment Information</font></u>
<p>Applicable business segment information is as follows for the periods
ended May 4, 2002 and May 5, 2001 (000's):
<br>&nbsp;
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td VALIGN=BOTTOM WIDTH="22%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">
<center><font face="Arial"><font size=+0>Famous</font></font>
<br><font face="Arial"><font size=+0>Footwear</font></font></center>
</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="14%">
<center><font face="Arial"><font size=+0>Wholesale</font></font>
<br><font face="Arial"><font size=+0>Operations</font></font></center>
</td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%">
<center><font face="Arial"><font size=+0>Naturalizer</font></font>
<br><font face="Arial"><font size=+0>Retail</font></font></center>
</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">
<center><font face="Arial"><font size=+0>Other</font></font></center>
</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%">
<center><font face="Arial"><font size=+0>Totals</font></font></center>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="22%" HEIGHT="2"></td>

<td VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="2">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="4%" HEIGHT="2"></td>

<td VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="2">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="5%" HEIGHT="2"></td>

<td VALIGN=TOP COLSPAN="2" WIDTH="13%" HEIGHT="2">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="4%" HEIGHT="2"></td>

<td VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="2">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="4%" HEIGHT="2"></td>

<td VALIGN=TOP COLSPAN="2" WIDTH="13%" HEIGHT="2">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="1%" HEIGHT="2"></td>
</tr>

<tr>
<td VALIGN=TOP COLSPAN="6" WIDTH="50%" HEIGHT="6"></td>

<td VALIGN=TOP WIDTH="5%" HEIGHT="6"></td>

<td VALIGN=TOP WIDTH="3%" HEIGHT="6"></td>

<td VALIGN=TOP WIDTH="10%" HEIGHT="6"></td>

<td VALIGN=TOP WIDTH="4%" HEIGHT="6"></td>

<td VALIGN=TOP WIDTH="3%" HEIGHT="6"></td>

<td VALIGN=TOP WIDTH="9%" HEIGHT="6"></td>

<td VALIGN=TOP WIDTH="4%" HEIGHT="6"></td>

<td VALIGN=TOP WIDTH="3%" HEIGHT="6"></td>

<td VALIGN=TOP WIDTH="10%" HEIGHT="6"></td>

<td VALIGN=TOP WIDTH="1%" HEIGHT="6"></td>
</tr>

<tr>
<td VALIGN=BOTTOM COLSPAN="6" WIDTH="50%"><b><font face="Arial"><font size=+0>Thirteen
Weeks Ended May 4, 2002</font></font></b></td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="9%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="22%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="10%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="4%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="5%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="10%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="4%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="9%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="4%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="10%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="6"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="22%"><font face="Arial"><font size=+0>External
Sales</font></font></td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial"><font size=+0>$</font></font></td>

<td VALIGN=BOTTOM WIDTH="10%">
<div align=right><font face="Arial"><font size=+0>267,606</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%"><font face="Arial"><font size=+0>$</font></font></td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial"><font size=+0>128,822</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%"><font face="Arial"><font size=+0>$</font></font></td>

<td VALIGN=BOTTOM WIDTH="10%">
<div align=right><font face="Arial"><font size=+0>49,272</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%"><font face="Arial"><font size=+0>$</font></font></td>

<td VALIGN=BOTTOM WIDTH="9%">
<div align=right><font face="Arial"><font size=+0>1,038</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%"><font face="Arial"><font size=+0>$</font></font></td>

<td VALIGN=BOTTOM WIDTH="10%">
<div align=right><font face="Arial"><font size=+0>446,738</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="22%"><font face="Arial"><font size=+0>Intersegment
Sales</font></font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">
<div align=right><font face="Arial"><font size=+0>-</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial"><font size=+0>29,215</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">
<div align=right><font face="Arial"><font size=+0>-</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="9%">
<div align=right><font face="Arial"><font size=+0>-</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">
<div align=right><font face="Arial"><font size=+0>29,215</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="22%"><font face="Arial"><font size=+0>Operating
profit (loss)</font></font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">
<div align=right><font face="Arial"><font size=+0>10,791</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial"><font size=+0>11,898</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">
<div align=right><font face="Arial"><font size=+0>(1,322</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="4%"><font face="Arial"><font size=+0>)</font></font></td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="9%">
<div align=right><font face="Arial"><font size=+0>(5,995</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="4%"><font face="Arial"><font size=+0>)</font></font></td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">
<div align=right><font face="Arial"><font size=+0>15,372</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="22%" HEIGHT="10"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="10"></td>

<td VALIGN=BOTTOM WIDTH="10%" HEIGHT="10"></td>

<td VALIGN=BOTTOM WIDTH="4%" HEIGHT="10"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="10"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="10"></td>

<td VALIGN=BOTTOM WIDTH="5%" HEIGHT="10"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="10"></td>

<td VALIGN=BOTTOM WIDTH="10%" HEIGHT="10"></td>

<td VALIGN=BOTTOM WIDTH="4%" HEIGHT="10"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="10"></td>

<td VALIGN=BOTTOM WIDTH="9%" HEIGHT="10"></td>

<td VALIGN=BOTTOM WIDTH="4%" HEIGHT="10"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="10"></td>

<td VALIGN=BOTTOM WIDTH="10%" HEIGHT="10"></td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="10"></td>
</tr>

<tr>
<td VALIGN=BOTTOM COLSPAN="6" WIDTH="50%"><b><font face="Arial"><font size=+0>Thirteen
Weeks Ended May 5, 2001</font></font></b></td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="9%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="22%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="10%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="4%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="5%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="10%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="4%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="9%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="4%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="10%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="6"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="22%"><font face="Arial"><font size=+0>External
Sales</font></font></td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial"><font size=+0>$</font></font></td>

<td VALIGN=BOTTOM WIDTH="10%">
<div align=right><font face="Arial"><font size=+0>255,728</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%"><font face="Arial"><font size=+0>$</font></font></td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial"><font size=+0>129,422</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%"><font face="Arial"><font size=+0>$</font></font></td>

<td VALIGN=BOTTOM WIDTH="10%">
<div align=right><font face="Arial"><font size=+0>50,985</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%"><font face="Arial"><font size=+0>$</font></font></td>

<td VALIGN=BOTTOM WIDTH="9%">
<div align=right><font face="Arial"><font size=+0>3</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%"><font face="Arial"><font size=+0>$</font></font></td>

<td VALIGN=BOTTOM WIDTH="10%">
<div align=right><font face="Arial"><font size=+0>436,138</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="22%"><font face="Arial"><font size=+0>Intersegment
Sales</font></font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">
<div align=right><font face="Arial"><font size=+0>-</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial"><font size=+0>32,633</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">
<div align=right><font face="Arial"><font size=+0>-</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="9%">
<div align=right><font face="Arial"><font size=+0>-</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">
<div align=right><font face="Arial"><font size=+0>32,633</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="22%"><font face="Arial"><font size=+0>Operating
profit (loss)</font></font></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">
<div align=right><font face="Arial"><font size=+0>9,854</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial"><font size=+0>11,362</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="5%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">
<div align=right><font face="Arial"><font size=+0>(561</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="4%"><font face="Arial"><font size=+0>)</font></font></td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="9%">
<div align=right><font face="Arial"><font size=+0>(5,403</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="4%"><font face="Arial"><font size=+0>)</font></font></td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="10%">
<div align=right><font face="Arial"><font size=+0>15,252</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="22%" HEIGHT="10"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="10"></td>

<td VALIGN=BOTTOM WIDTH="10%" HEIGHT="10"></td>

<td VALIGN=BOTTOM WIDTH="4%" HEIGHT="10"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="10"></td>

<td VALIGN=BOTTOM WIDTH="11%" HEIGHT="10"></td>

<td VALIGN=BOTTOM WIDTH="5%" HEIGHT="10"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="10"></td>

<td VALIGN=BOTTOM WIDTH="10%" HEIGHT="10"></td>

<td VALIGN=BOTTOM WIDTH="4%" HEIGHT="10"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="10"></td>

<td VALIGN=BOTTOM WIDTH="9%" HEIGHT="10"></td>

<td VALIGN=BOTTOM WIDTH="4%" HEIGHT="10"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="10"></td>

<td VALIGN=BOTTOM WIDTH="10%" HEIGHT="10"></td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="10"></td>
</tr>
</table>

<center>
<p>6
<br>
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%"></center>

<p><font face="Arial">Reconciliation of operating profit to earnings before
income taxes (000's):</font>
<br>&nbsp;
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td VALIGN=BOTTOM WIDTH="38%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="5" WIDTH="29%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="5" WIDTH="28%">
<center><font face="Arial"><font size=+0>Thirteen Weeks Ended</font></font></center>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="38%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="5" WIDTH="29%" HEIGHT="2"></td>

<td VALIGN=BOTTOM WIDTH="4%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="5" WIDTH="28%" HEIGHT="2">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="2"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="38%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">
<center><font face="Arial"><font size=+0>May 4,</font></font>
<br><font face="Arial"><font size=+0>2002</font></font></center>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="14%">
<center><font face="Arial"><font size=+0>May 5,</font></font>
<br><font face="Arial"><font size=+0>2001</font></font></center>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="38%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%" HEIGHT="2"></td>

<td VALIGN=BOTTOM WIDTH="4%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="2"></td>

<td VALIGN=BOTTOM WIDTH="4%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="2">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="14%" HEIGHT="2">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="2"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="38%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="38%"><font face="Arial"><font size=+0>Total operating
profit</font></font></td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial"><font size=+0>$</font></font></td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial"><font size=+0>15,372</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial"><font size=+0>$</font></font></td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial"><font size=+0>15,252</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="38%"><font face="Arial"><font size=+0>Interest
expense</font></font></td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial"><font size=+0>3,628</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial"><font size=+0>5,517</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="38%"><font face="Arial"><font size=+0>Non-operating
other expense</font></font></td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial"><font size=+0>611</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial"><font size=+0>308</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="38%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%" HEIGHT="2"></td>

<td VALIGN=BOTTOM WIDTH="4%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="2"></td>

<td VALIGN=BOTTOM WIDTH="4%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%" HEIGHT="2">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="14%" HEIGHT="2">
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="2"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="38%"><font face="Arial"><font size=+0>&nbsp;&nbsp;
Earnings before income taxes</font></font></td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="4%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial"><font size=+0>$</font></font></td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font face="Arial"><font size=+0>11,133</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%"><font face="Arial"><font size=+0>$</font></font></td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font face="Arial"><font size=+0>9,427</font></font></div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="38%" HEIGHT="2"></td>

<td VALIGN=TOP COLSPAN="2" WIDTH="13%" HEIGHT="2"></td>

<td VALIGN=TOP WIDTH="4%" HEIGHT="2"></td>

<td VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="2"></td>

<td VALIGN=TOP WIDTH="4%" HEIGHT="2"></td>

<td VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="2">
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="2%" HEIGHT="2"></td>

<td VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="2">
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="1%" HEIGHT="2"></td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="38%" HEIGHT="2"></td>

<td VALIGN=TOP COLSPAN="2" WIDTH="13%" HEIGHT="2"></td>

<td VALIGN=TOP WIDTH="4%" HEIGHT="2"></td>

<td VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="2"></td>

<td VALIGN=TOP WIDTH="4%" HEIGHT="2"></td>

<td VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="2"></td>

<td VALIGN=TOP WIDTH="2%" HEIGHT="2"></td>

<td VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="2"></td>

<td VALIGN=TOP WIDTH="1%" HEIGHT="2"></td>
</tr>
</table>

<p>Operating profit represents gross profit less selling and administrative
expenses and other operating income or expense. The "Other" segment includes
Corporate general and administrative expenses, which are not allocated
to the operating units, and the Company's investment in Shoes.com, Inc.,
a footwear e-commerce company.
<p><u>Note 5 - Restructuring Reserves</u>
<p>In the fourth quarter of fiscal 2001, the Company recorded charges and
reserves to close 97 Naturalizer retail stores. As of May 4, 2002, 50 of
the 97 Naturalizer retail stores were closed, and $4.0 million of the $15.5
million yearend reserve balance was utilized during the first quarter of
fiscal 2002.
<p>During the first quarter of fiscal 2002, the Company utilized approximately
$0.3 million of the $3.1 million yearend reserve balance, which was established
during the fourth quarter of fiscal 2001, for severance costs related to
the elimination of 117 positions as the Company moves to a new Shared Services
platform.
<br>&nbsp;
<p><u><font face="Arial">Note 6 - Goodwill and Other Intangible Assets</font></u>
<p>Effective at the beginning of fiscal 2002, the Company adopted Statement
of Accounting Standards (SFAS) No. 142, "Goodwill and Other Intangible
Assets." This statement requires goodwill and intangible assets with indefinite
lives no longer be amortized but instead be tested for impairment at least
annually. Under SFAS No. 142, all goodwill and intangible asset amortization
ceased effective February 3, 2002. The Company has completed the required
impairment tests and found no impairment. On an ongoing basis, the Company
expects to perform impairment tests during the fourth quarter.
<p>In the first quarter of fiscal 2001, goodwill and intangible amortization
was $0.3 million, aftertax, or $.02 per share.
<br>&nbsp;
<br>&nbsp;
<br>
<br>
<center>
<p>7
<br>
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%"></center>

<p>As of May 4, 2002, goodwill of $18.1 million (net of $10.7 million accumulated
amortization) and intangible assets of $1.0 million (net of $0.3 million
accumulated amortization) were attributable to the Company's operating
segments as follows: $3.5 million for Famous Footwear, $10.2 million for
Wholesale operations, $4.5 million for Naturalizer Retail and $0.9 million
for the "Other" segment.
<br>&nbsp;
<p><u>Note 7 - Long-Lived Assets</u>
<p>At the beginning of fiscal 2002, the Company adopted SFAS No. 144, "Accounting
for the Impairment or Disposal of Long-Lived Assets", which addresses financial
accounting and reporting for the impairment or disposal of long-lived assets.
The adoption of SFAS No. 144 did not have a significant effect on the Company's
earnings or financial position.
<br>&nbsp;
<br>&nbsp;
<br>
<center>
<p>8
<br>
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%"></center>

<p><b><u>ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS</u></b>
<p><b><u>Results of Operations</u></b>
<p><b><u>Quarter ended May 4, 2002 compared to the Quarter ended May 5,
2001</u></b>
<p>Consolidated net sales for the quarter ended May 4, 2002 were $446.7
million compared to $436.1 million in the quarter ended May 5, 2001. Net
earnings of $7.6 million for the first quarter of 2002 compares to net
earnings of $6.4 million in the first quarter of 2001. Diluted earnings
per share were $.43 in the first quarter of 2002 compared to $.36 in the
first quarter of 2001.
<p>Famous Footwear 's sales increased 4.6% during the first quarter of
2002 to $267.6 million. The increase was driven by a 0.4% same-store sales
increase partially offset by two less stores resulting in a total of 917
stores in operation. Famous Footwear had operating earnings for the first
quarter of 2002 of $10.8 million compared to $9.9 million for the same
period last year. The increase in operating profitability was due to improved
leveraging of the expense base and better margin rates on new spring footwear.
<p>The Company's wholesale operations had net sales of $128.8 million during
the first quarter of 2002 compared to $129.4 million in the comparable
quarter last year. This sales decrease was primarily due to lower sales
of women's private label footwear, partially offset by higher sales of
Naturalizer branded products and children's footwear. Operating earnings
of $11.9 million increased from $11.4 million in the first quarter of 2001
primarily as a result of higher margins.
<p>In the Company's Naturalizer Retail operations, which includes stores
in both the United States and Canada, net sales decreased 3.4% to $49.3
million in the first quarter of 2002. Same-store sales in the first quarter
of 2002 increased 3.1% in the United States but decreased 5.1% in Canada.
The Company had 46 less stores in operation in the United States in 2002
and 11 more stores in operation in Canada than in the first quarter of
2001. At the end of the first quarter of 2002, 440 stores were in operation
including 274 stores in the United States and 166 stores in Canada. Total
Naturalizer Retail operations incurred operating losses of $1.3 million
in the first quarter of fiscal 2002 compared to losses of $0.6 million
for the same period in 2001. The decline was primarily due to lower same-store
sales in Canada due to unseasonably cool weather.
<p>Consolidated gross profit as a percent of sales for the first quarter
of 2002 increased to 40.4% from 40.1% during the same period last year.
This increase was primarily due to higher margins in the Company's wholesale
operations.
<p>Selling and administrative expenses as a percent of sales for the first
quarter of 2002 increased to 37.1% from 36.7% for the same period last
year. This increase was due to higher marketing expenses in the Company's
wholesale operations and additional consulting costs associated with Project
IMPACT.
<br>&nbsp;
<br>&nbsp;
<br>
<br>
<center>
<p>9
<br>
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%"></center>

<p>The consolidated tax rate was 31.4% of pre-tax income for the first
quarter of 2002 compared to 32.0% last year. The decrease from last year's
effective rate reflects a higher mix of offshore operating income, which
is taxed at lower rates.
<br>&nbsp;
<p><b><u>Financial Condition</u></b>
<p>A summary of key financial data and ratios at the dates indicated is
as follows:
<br>&nbsp;
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td VALIGN=BOTTOM WIDTH="39%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="18%">
<center><font face="Arial">May 4,</font>
<br><font face="Arial">2002</font>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></center>
</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="19%">
<center><font face="Arial">May 5,</font>
<br><font face="Arial">2001</font>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></center>
</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="19%">
<center><font face="Arial">February 2,</font>
<br><font face="Arial">2002</font>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></center>
</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="39%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="18%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="19%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="19%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="39%"><font face="Arial">Working Capital (millions)</font></td>

<td VALIGN=BOTTOM WIDTH="18%">
<div align=right><font face="Arial">$230.1</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="19%">
<div align=right><font face="Arial">$254.8</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="19%">
<div align=right><font face="Arial">$225.5</font></div>
</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="39%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="18%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="19%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="19%" HEIGHT="16"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="39%" HEIGHT="16"><font face="Arial">Current Ratio</font></td>

<td VALIGN=BOTTOM WIDTH="18%" HEIGHT="16">
<div align=right><font face="Arial">1.9:1</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="19%" HEIGHT="16">
<div align=right><font face="Arial">1.8:1</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="19%" HEIGHT="16">
<div align=right><font face="Arial">1.8:1</font></div>
</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="39%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="18%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="19%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="19%" HEIGHT="16"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="39%" HEIGHT="16"><font face="Arial">Total Debt
as a Percentage</font>
<br><font face="Arial">&nbsp; of Total Capitalization</font></td>

<td VALIGN=BOTTOM WIDTH="18%" HEIGHT="16">
<div align=right><font face="Arial">41.5%</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="19%" HEIGHT="16">
<div align=right><font face="Arial">46.5%</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="19%" HEIGHT="16">
<div align=right><font face="Arial">45.7%</font></div>
</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="39%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="18%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="19%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="3%" HEIGHT="16"></td>

<td VALIGN=BOTTOM WIDTH="19%" HEIGHT="16"></td>
</tr>
</table>

<p><font face="Arial">Cash provided from operating activities for the first
quarter of fiscal 2002 was $38.1 million versus cash usage of $14.2 million
for the same period last year. This increase resulted mainly from lower
inventories, primarily at the Famous Footwear division where inventories
were $80.6 million lower than at the end of the first quarter of fiscal
2001.</font>
<p><font face="Arial">The decrease in the ratio of total debt as a percentage
of total capitalization at May 4, 2002, compared to the end of fiscal 2001,
is due to the cash provided and principal payments of long-term debt. At
May 4, 2002, $150.7 million was borrowed and $9.6 million of letters of
credit were outstanding under the Company's revolving bank Credit Agreement,
which leaves additional borrowing availability of approximately $90 million.</font>
<p><font face="Arial">In May 2000, the Company announced a stock repurchase
program under which the Company was authorized to repurchase up to 2 million
shares of the Company's outstanding common stock. In the first quarter
of fiscal 2002, no shares were purchased under this authorization. Since
the inception of this program, the Company has repurchased a total of 928,900
shares for approximately $11.3 million.</font>
<br>&nbsp;
<br>&nbsp;
<br>
<br>
<center>
<p>10
<br>
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%"></center>

<p><b><u><font face="Arial">Forward-Looking Statements</font></u></b>
<p><font face="Arial">This Form 10-Q contains forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
Actual results could differ materially. In Item 1 of the Company's fiscal
2001 Annual Report on Form 10-K, detailed risk factors that could cause
variations in results to occur are listed and further described. Such description
is incorporated herein by reference.</font>
<br>&nbsp;
<p><b><u><font face="Arial">ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURE
ABOUT MARKET RISKS</font></u></b>
<p><font face="Arial">No material changes have taken place in the quantitative
and qualitative information about market risk since the end of the most
recent fiscal year. For further information, see Item 7A of the Company's
Annual Report on Form 10-K for the year ended February 2, 2002.</font>
<br>&nbsp;
<br>&nbsp;
<br>
<center>
<p><font face="Arial">11</font>
<br>
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%">
<p><b><font face="Arial">PART II - OTHER INFORMATION</font></b></center>

<p><font face="Arial">Item 1 - Legal Proceedings</font>
<dir><font face="Arial">There have been no material developments during
the quarter ended May 4, 2002 in the legal proceedings described in the
Company's Annual Report on Form 10-K for the year ended February 2, 2002.</font></dir>
<font face="Arial">Item 4 - Submission of Matters to a Vote of Security
Holders</font>
<ol><font face="Arial">At the Annual Meeting of Shareholders held on May
23, 2002, three proposals described in the Notice of Annual Meeting of
Shareholders dated April 16, 2002, were voted upon.</font>
<p><font face="Arial">1.&nbsp;&nbsp;&nbsp; The shareholders elected two
directors, Ronald A. Fromm and Patricia G. McGinnis for terms of three
years each. The voting for each director was as follows:</font>
<br>&nbsp;
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="631" >
<tr>
<td VALIGN=TOP WIDTH="58%"><u><font face="Arial">Directors</font></u></td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="17%">
<center><font face="Arial">For</font>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></center>
</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="19%">
<center><font face="Arial">Withheld</font>
<hr ALIGN=RIGHT SIZE=1 NOSHADE WIDTH="100%"></center>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="58%">&nbsp;</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="17%">&nbsp;</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="19%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="58%"><font face="Arial">Ronald A. Fromm</font></td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="17%">
<div align=right><font face="Arial">16,003,399</font></div>
</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="19%">
<div align=right><font face="Arial">135,704</font></div>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="58%"><font face="Arial">Patricia G. McGinnis</font></td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="17%">
<div align=right><font face="Arial">15,988,993</font></div>
</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="19%">
<div align=right><font face="Arial">150,110</font></div>
</td>
</tr>
</table>

<p><font face="Arial">2.&nbsp;&nbsp;&nbsp; The proposal to make certain
amendments to the Restated Certificate of Incorporation of the Company
was approved by the vote of 13,828,627 in favor to 254,587 against, with
52,505 abstaining and 2,003,384 non-votes.</font>
<p><font face="Arial">3.&nbsp;&nbsp;&nbsp; The proposal to approve the
Brown Shoe Company, Inc. Incentive and Stock Compensation Plan of 2002
and the allocation of 1,500,000 of the Corporation's shares thereto was
approved by a vote of 9,678,715 in favor to 3,315,651 against, with 1,141,353
abstaining and 2,003,384 non-votes.</font></ol>
<font face="Arial">Item 6 - Exhibits and Reports on Form 8-K</font>
<br>&nbsp;
<table BORDER=0 CELLSPACING=0 CELLPADDING=7 WIDTH="564" >
<tr>
<td VALIGN=TOP WIDTH="7%"><font face="Arial">(a)</font></td>

<td VALIGN=TOP WIDTH="9%"><font face="Arial">(3)</font></td>

<td VALIGN=TOP WIDTH="13%"><font face="Arial">(a)</font></td>

<td VALIGN=TOP WIDTH="71%"><font face="Arial">Certificate of Incorporation
of the Company, filed herewith.</font></td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="7%">&nbsp;</td>

<td VALIGN=TOP WIDTH="9%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%"><font face="Arial">(b)</font></td>

<td VALIGN=TOP WIDTH="71%"><font face="Arial">Bylaws of the Company as
amended through March 2, 2000, incorporated herein by reference to Exhibit
3 to the Company's Annual Report on Form 10-K for the fiscal year ended
January 29, 2000.</font></td>
</tr>
</table>

<center>
<p>12
<br>
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%"></center>

<table BORDER=0 CELLSPACING=0 CELLPADDING=7 WIDTH="564" >
<tr>
<td VALIGN=TOP WIDTH="7%">&nbsp;</td>

<td VALIGN=TOP WIDTH="9%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%"><font face="Arial">(b) (ii)</font></td>

<td VALIGN=TOP WIDTH="71%"><font face="Arial">Second Amendment to Credit
Agreement, dated as of February 5, 2002, between the Company as Borrower,
Bank of America, National Association, as administration agent, Fleet Retail
Finance, Inc., as syndication agent, and the other financial institutions
party thereto, as lenders, incorporated herein by reference to the Company's
Form 10-K dated February 2, 2002.</font></td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="7%">&nbsp;</td>

<td VALIGN=TOP WIDTH="9%"><font face="Arial">(10)</font></td>

<td VALIGN=TOP WIDTH="13%"><font face="Arial">(j)*</font></td>

<td VALIGN=TOP WIDTH="71%"><font face="Arial">Severance Agreement, dated
April 30, 2002, between the Company and Byron Douglas Norfleet, filed herewith.</font></td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="7%">&nbsp;</td>

<td VALIGN=TOP WIDTH="9%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%"><font face="Arial">(m)*</font></td>

<td VALIGN=TOP WIDTH="71%"><font face="Arial">Incentive and Stock Compensation
Plan of 2002, incorporated herein by reference to Exhibit C of the Company's
Definitive Proxy Statement dated April 16, 2002.</font></td>
</tr>
</table>

<table BORDER=0 CELLSPACING=0 CELLPADDING=7 WIDTH="564" >
<tr>
<td VALIGN=TOP WIDTH="7%"><font face="Arial">(b)</font></td>

<td VALIGN=TOP WIDTH="93%"><font face="Arial">Reports on Form 8-K:</font></td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="7%">&nbsp;</td>

<td VALIGN=TOP WIDTH="93%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="7%">&nbsp;</td>

<td VALIGN=TOP WIDTH="93%"><font face="Arial">The Company filed no reports
on Form 8-K during the quarter ended May 4, 2002.</font></td>
</tr>
</table>

<p>&nbsp;&nbsp;&nbsp; * Denotes management contract or compensatory plan
arrangements.
<br>&nbsp;
<p><font face="Arial">Pursuant to the requirements of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.</font>
<br>&nbsp;
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td VALIGN=TOP WIDTH="49%">&nbsp;</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="48%">
<center><font face="Arial">BROWN SHOE COMPANY, INC.</font></center>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="49%">&nbsp;</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="48%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="49%" HEIGHT="6"></td>

<td VALIGN=TOP WIDTH="3%" HEIGHT="6"></td>

<td VALIGN=TOP WIDTH="48%" HEIGHT="6"></td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="49%"><font face="Arial">Date June 14, 2002</font></td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="48%">
<center><font face="Arial">/s/ Andrew M. Rosen</font>
<hr ALIGN=RIGHT SIZE=3 NOSHADE WIDTH="100%"></center>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="49%">&nbsp;</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="48%">
<center><font face="Arial">Chief Financial Officer and Treasurer</font>
<br><font face="Arial">On Behalf of the Corporation as the&nbsp;</font>
<br><font face="Arial">Principal Financial Officer</font></center>
</td>
</tr>
</table>

<br>&nbsp;
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<p>13
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<DOCUMENT>
<TYPE>EX-3
<SEQUENCE>3
<FILENAME>exibita3a.htm
<DESCRIPTION>CERTIFICATE OF INCORPORATION
<TEXT>
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<blockquote>
<div align=right><b><font face="CG Times">Exhibit (a) (3) (a)</font></b></div>
</blockquote>

<center>
<p><br><b><font face="CG Times">CERTIFICATE OF INCORPORATION</font></b>
<p><b><font face="CG Times">OF</font></b>
<p><b><font face="CG Times">BROWN SHOE COMPANY, INC.</font></b></center>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under Section 402 of the Business Corporation Law
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
FIRST: The name of the Company shall be Brown Shoe Company, Inc. (hereinafter
termed "Company").
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
SECOND: The business office of the corporation is located in the City of
New York, County of New York, State of New York.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
THIRD: The purpose or purposes of the Company are as follows:
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To manufacture, buy, sell and deal in leather and leather goods, boots,
shoes, footwear, rubber and rubber goods of every kind, nature and description
and all accessories thereto.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As principal, agent, commission merchant or consignee, to acquire, by purchase
or otherwise, own, hold, take on lease or in exchange, mortgage, lease,
sell or otherwise dispose of any and all real and personal property, rights
and privileges suitable or convenient for any of its purposes or businesses,
and to acquire, by purchase or otherwise, own, hold, lease, mortgage, sell
or otherwise dispose of, erect, construct, make, alter, enlarge, improve,
and to aid or subscribe toward the construction, acquisition, or improvement
of any factories, shops, store-houses, buildings and manufacturing and
commercial establishments of every character, including all equipment,
fixtures, machinery, implements and supplies necessary or incidental to,
or connected with any of its purposes of businesses.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To purchase, hold, sell, assign, transfer, mortgage, pledge, or otherwise
dispose of the shares of capital stock or any bonds, securities or evidences
of indebtedness of any corporation, domestic or foreign, and to pay therefor
(in whole or in part), in cash or other property, or by the issue and delivery
of its own capital stock, bonds or other obligations, or of any other corporation,
and to exercise in respect of any such shares of stock, bonds or other
securities any and all rights, powers and privileges of individual owners
or holders, including the right to vote thereon.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To acquire from time to time such property or shares of the capital stock
of any other corporation or corporations as the Board of Directors shall
deem of advantage to Brown, at such valuation as, in the judgment of said
board, shall be fair and just.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To purchase, retire, redeem, hold, re-issue and otherwise dispose of the
shares of its stock or its bonds or other obligations in such amounts and
in such manner and upon such terms as the Board of Directors may deem expedient
in so far as may be permitted by law.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To acquire, purchase, hold, use, sell, assign, lease, mortgage, or otherwise
dispose of inventions, patents, patent rights, licenses and privileges,
improvements, trade-marks and trade-names, or pending applications therefor,
or connected therewith, covering in whole or in part any and all articles
manufactured or dealt in by it, or relating to, or useful in connection
with any business that may at any time be carried on by it.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To make, accept, endorse, execute and issue promissory notes, bills of
exchange, bonds, debentures and other obligations, from time to time, for
the purchase of property or for any purpose in or about its business, and
to secure the payment of any such obligation by mortgage, pledge, deed
of trust or otherwise.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To do any or all the things herein set forth, and such other things as
are incidental or conducive to the attainment of the above objects, to
the same extent as natural persons might or could do, and in any part of
the world, in so far as may be permitted by law.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To engage in any lawful act or activity for which corporations may be organized
under the New York Business Corporation Law, provided that the Corporation
is not formed to engage in any act or activity which requires the consent
or approval of any state official, department, board agency or other body,
without such consent or approval first being obtained.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
FOURTH: The aggregate number of shares which the Corporation shall have
authority to issue is 101,000,000 of which 100,000,000 shares shall be
Common Stock having a par value of $3.75 per share and 1,000,000 shares
shall be Preferred Stock having a par value of $1.00 per share.
<blockquote>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1.&nbsp;&nbsp;&nbsp;&nbsp; The Preferred Stock may be issued from time
to time as follows:</blockquote>

<blockquote>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp;&nbsp; As shares of one or more series of Preferred
Stock, with such serial designations as may be stated in the resolution
or resolutions providing for the issue of such stock from time to time
adopted by the Board of Directors; and in such resolutions providing for
the issue of each particular series, the Board of Directors, to the fullest
extent permitted by law, is expressly authorized to fix:
<blockquote>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(i) the dividend rights of the particular series, including, without limitation,
the annual dividend rate, whether dividends shall be cumulative or non-cumulative
and, if cumulative, the date from which dividends shall be cumulative;
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(ii) the right, if any, of the Corporation to redeem shares of the particular
series and the terms and conditions of such redemption;
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(iii) the amounts per share which the particular series shall be entitled
to receive in case of a voluntary or involuntary liquidation, dissolution
or winding up of the affairs of the Corporation;
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(iv) the voting power, if any, for the particular series and the terms
and conditions under which such voting power may be exercised, provided
that the shares of all series having voting power shall not have more than
one vote each;
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(v) the obligation, if any, of the Corporation to retire shares of such
series pursuant to a sinking fund or fund of a similar nature or otherwise
and the terms and conditions of such obligation;
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(vi) the terms and conditions, if any, upon which shares of such series
shall be convertible into, or exchangeable for, shares of Common Stock
including the price or prices or the rate or rates of conversion or exchange
and the terms of adjustment, if any; and
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(vii) any other rights, preferences or limitations of the shares of such
series consistent with the provisions hereof governing the Preferred Stock.</blockquote>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp;&nbsp; In case the stated dividends and the amounts
payable on liquidation are not paid in full, the shares of all series of
the Preferred Stock shall share ratably in the payment of dividends, including
accumulations, if any, in accordance with the sums which would be payable
on said shares if all dividends were declared and paid in full, and in
any distribution of assets other than by way of dividends in accordance
with the sums which would be payable on such distribution if all sums payable
were discharged in full.</blockquote>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2.&nbsp;&nbsp;&nbsp; The holders of the Preferred Stock shall be entitled
to receive, when and as declared by the Board of Directors, but only out
of surplus legally available for the payment of dividends, preferential
cash dividends at the annual rate for each particular series theretofore
fixed by the Board of Directors as hereinbefore provided. The holders of
the Preferred Stock shall not be entitled to receive any dividends thereon
other than the dividends referred to in this subdivision 2.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
3.&nbsp;&nbsp;&nbsp;&nbsp; So long as any of the Preferred Stock shall
remain outstanding, in no event shall any dividends whatsoever, whether
in cash, stock or other property (except a dividend payable in Common Stock
of the Company), be paid or declared, or any distribution be made on the
Common Stock, nor shall any shares of the Common Stock be purchased, retired
or otherwise acquired by the Corporation:
<blockquote>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp;&nbsp; unless all accrued dividends on the Preferred
Stock of all series shall have been paid and full dividends for the then
current dividend period in respect of any shares of such stock which have
cumulative dividend rights shall have been paid or declared and a sum sufficient
for the payment thereof set apart; and
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp;&nbsp; unless, if at any time the Corporation is obligated
to retire shares of any series of the Preferred Stock pursuant to a sinking
fund or fund of a similar nature, all arrears in respect of the retirement
of the Preferred Stock of all series shall have been made good; and
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;&nbsp;&nbsp;&nbsp; except out of surplus legally available at
the time for the payment of such dividends or for the purchase of such
stock.</blockquote>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Subject to the foregoing provisions and not otherwise, such dividends (payable
either in cash, stock or other property) may be determined by the Board
of Directors may be declared and paid from time to time on the Common Stock
out of the remaining surplus of the Corporation legally available for the
payment of dividends, and the Preferred Stock shall not be entitled to
participate in any such dividend, whether payable in cash, stock or other
property.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
4.&nbsp;&nbsp;&nbsp;&nbsp; No holder of shares of Preferred Stock of any
series shall be entitled as such, as a matter of right, to subscribe for
or purchase any part of any new or additional issue of stock of any class
whatsoever of the Corporation, or of securities convertible into stock
of any class whatsoever, whether now or hereafter authorized, or whether
issued for cash or other consideration or by way of dividend.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
5.&nbsp;&nbsp;&nbsp;&nbsp; In the event of a liquidation, dissolution or
winding up of the affairs of the Corporation, whether voluntary or involuntary,
then, before any distribution or payment shall be made to the holders of
the Common Stock, the holders of each series of the Preferred Stock shall
be entitled to be paid in cash the applicable liquidation price per share
fixed at the time of the original authorization of the issue of shares
of each such series and, in the case of each share of the Preferred Stock
having cumulative dividend rights, an amount, computed at the annual dividend
rate for the series of which the particular share is a part, from the date
on which dividends on such share became cumulative to the date fixed for
such distribution or payment, less the aggregate amount of all dividends
theretofore and on such distribution or payment date paid thereon. If such
payment shall have been made in full to the holders of the Preferred Stock,
the remaining assets and funds of the Corporation shall be distributed
among the holders of the Common Stock.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
FIFTH: The name of the registered agent of the Company is CT Corporation
System and the address of the registered agent is 111 Eighth Avenue, New
York, New York 10011, upon whom process against the corporation may be
served.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Secretary of State is designated as the agent of the corporation upon
whom process against the corporation may be served. The address to which
the Secretary of State shall mail a copy of process in any action or proceeding
against the corporation which may be served on him is c/o CT Corporation
System, 111 Eighth Avenue, New York, New York 10011.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
SIXTH. The duration of the Company shall be perpetual.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
SEVENTH. The number of directors of the Company shall be determined in
the manner provided in the by-laws, but shall not be less than 7 nor more
than 21, divided into three classes. At each annual election the term of
one class of directors shall expire, and the successors of the directors
of such class shall be elected for a term of three years. Each class shall
consist of such number of directors as may be provided in the by-laws of
the Company; provided, however, that at least one-fourth in number of the
directors of the Company shall be elected annually.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
EIGHTH. The directors shall have power among other things:
<blockquote>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp;&nbsp; From time to time, to determine whether, and
to what extent, and at what times and places, and under what conditions
and regulations, the accounts and books of the Company, or any of them,
shall be open to the inspection of stockholders; and no stockholders shall
have any right to inspect any book or account or document of the Company
except as conferred by the statutes of New York, or authorized by the directors;
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp;&nbsp; Subject to the provisions of the aforesaid
"Business Corporation Law," to hold their meetings either within or without
the State of New York, and to have one or more offices, and to keep the
books of the Company (except the stock and transfer books) outside the
State of New York, and at such place or places, as may from time to time
be a designated by them;
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;&nbsp;&nbsp;&nbsp; To provide by the by-laws, or otherwise, for
the selection, from among their own number, of an executive committee,
of such number as they may from time to time designate, and to delegate
to such executive committee all or any of the powers of the board of directors,
when the board is not in session, provided that such delegation of power
is not contrary to law;
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(d)&nbsp;&nbsp;&nbsp;&nbsp; To appoint such other standing committees as
they may determine, with such powers as shall be conferred by them or as
may be authorized by the by-laws; and
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(e)&nbsp;&nbsp;&nbsp;&nbsp; To appoint officers of the Company, including
one or more vice-presidents, one or more assistant treasurers, and one
or more assistant secretaries, and to provide that the persons so appointed
shall have, and may exercise, all or any of the powers of the president,
of the treasurer and of the secretary, respectively.</blockquote>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
NINTH. No contract or other transaction between the Company and any other
corporation shall be affected by the fact that the directors of this Company
are interested in or are directors or officers of such other corporation,
and any director individually may be a party to or may be interested in
any contract or transaction of this Company; and no contract or transaction
of this Company with any person or persons, firm or association shall be
affected by the fact that any director or directors of this Company is
a party to or interested in such contract or transaction, or in any way
connected with such person or persons, firm or association, provided that
the interest in any such contract or other transaction of any such director
shall be fully disclosed and that such contract or other transaction shall
be authorized or ratified by the vote of a sufficient number of directors
of the Company not so interested; and each and every person who may become
a director of this Company is hereby relieved from any liability that might
otherwise exist from contracting with the Company for the benefit of himself
or any firm, association or corporation in which he may be in any wise
interested.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
TENTH. Subject always to the by-laws made by the stockholders, the board
of directors may make by-laws, and from time to time, may alter, amend
or repeal any by-laws made by them; but any by-laws made by the board of
directors may be altered, amended or repealed by the stockholders at any
annual meeting, or at any special meeting, provided notice of such proposed
alteration or repeal be included in the notice of meeting.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
ELEVENTH. The Board of Directors of the Corporation, when evaluating any
offer of another person to (a) make a tender or exchange offer for any
equity security of the Corporation, (b) merge or consolidate the Corporation
with another corporation, or (c) purchase or otherwise acquire all or substantially
all of the properties and assets of the Corporation, may in connection
with the exercise of its judgment in determining what is in the best interests
of the Corporation and its Stockholders, give due consideration to all
relevant factors, including without limitation the social and economic
effects on the employees, customers, suppliers and other constituencies
of the Corporation and its subsidiaries and on the communities in which
the Corporation and its subsidiaries operate or are located, to the extent
permissible under the New York Business Corporation Law.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
TWELFTH. No director of the Corporation shall be liable to the Corporation
or its shareholders for monetary damages for any beach of his duties as
a director, provided that this Article Thirteenth shall not eliminate or
limit any liability arising out of a judgment or other final determination
adverse to the director which establishes that (a) his acts or omissions
were in bad faith or involved intentional misconduct or a knowing violation
of law; (b) he personally gained in fact a financial profit or other advantage
to which he was not legally entitled; or (c) his acts violated Section
719 of the New York Business Corporation Law. This Article Thirteenth shall
not eliminate or limit the liability of a director for any act or omission
occurring prior to the effective date of its adoption. No repeal or modification
of this Article Thirteenth, directly or by adoption of an inconsistent
provision in this Certificate of Incorporation, shall be effective with
respect to any cause of action, suit, claim or other matter arising out
of or relating to any act or omission occurring prior to such repeal or
modification.
<br>&nbsp;
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<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>4
<FILENAME>exhibt10j.htm
<DESCRIPTION>SEVERANCE AGREEMENT - BYRON NORFLEET
<TEXT>
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<div align=right><b><font size=+1>Exhibit (10) (j)</font></b></div>

<center><b><font size=+2>SEVERANCE AGREEMENT</font></b></center>

<p><br>
<br>
<br>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
SEVERANCE AGREEMENT (the "Agreement") dated April 30, 2002 ("Effective
Date") between Byron Douglas Norfleet ("Employee") and Brown Shoe Company,
Inc., a New York corporation (as further defined in Section 13, the "Company").
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
WHEREAS, in order to accomplish its objectives, the Company believes it
is essential that members of its Operating Committee, such as Employee,
be encouraged to remain with the Company during management transition and
thereafter and in the event there is any change in corporate structure
which results in a Change in Control.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
WHEREAS, Employee wishes to have the protection provided for in this Agreement
and, in exchange for such protection, is willing to give to the Company,
under certain circumstances, his covenant not to compete.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
WHEREAS, the Company and Employee desire to, and hereby, terminate the
Severance Agreement dated December 1, 1999 by and between the Company and
Employee.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1. <b>Definitions.</b>
<blockquote>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a. "Cause" means
(i) engaging by Employee in willful misconduct which is materially injurious
to the Company; (ii) conviction of the Employee of a felony; (iii) engaging
by Employee in fraud, material dishonesty or gross misconduct in connection
with the business of the Company; (iv) engaging by Employee in any act
of moral turpitude reasonably likely to materially and adversely affect
the Company or its business; or (v) habitual use by Employee of narcotics
or alcohol.</blockquote>

<blockquote>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b. "Change of Control"
means (i) any person other than the Company acquiring more than 25 percent
of the Company's Common Stock through a tender offer, exchange offer or
otherwise; (ii) the liquidation or dissolution of the Company following
the sale of all or substantially all of its assets; or (iii) the Company
not being the surviving parent corporation resulting from any merger or
consolidation to which it has been a party (other than a merger between
the Company and a newly formed shell corporation, the sole purpose and
effect of which merger is to reincorporate the Company in a jurisdiction
other than New York and where the surviving corporation in such merger
assumes the obligations of the Company hereunder).
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; c. "Competitor" shall mean
any person, firm, corporation, partnership or other entity which in its
prior fiscal year had annual gross sales volume or revenues of shoes of
more than $20,000,000 or is reasonably expected to have such sales or revenues
in either the current fiscal year or the next following fiscal year.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; d. "Confidential Information"
shall have the meaning set forth in Section 10.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; e. "Customer" shall mean
any wholesale customer of the Company which either purchased from the Company
during the one (1) year immediately preceding the Termination Date, or
is reasonably expected by the Company to purchase from the Company in the
one (1) period immediately following the Termination Date, more than $1,000,000
in shoes.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; f. "Good Reason," when used
with reference to a voluntary termination by Employee of his employment
with the Company, shall mean (i) a reduction in Employee's base salary
as in effect on the date hereof, or as the same may be increased from time
to time; or (ii) a reduction in Employee's status, position, responsibilities
or duties.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; g. "Term" means the period
commencing on the Effective Date and terminating one year after the Effective
Date; provided, however, that the Term shall automatically be extended
for successive additional one year periods unless either party to this
Agreement provides the other party with notice of termination of this Agreement
at least ninety days prior to the expiration of the original one-year period
or any one-year period thereafter.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; h. "Termination Date" shall
mean the effective date as provided hereunder of the termination of Employee's
employment.</blockquote>

<p><br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2. <b>Termination During Term -- Change in Control Severance Inapplicable</b>.
<br>&nbsp;
<blockquote>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a. Employee's employment
may be terminated by the Company for Cause at any time, effective upon
the giving to Employee of a written notice of termination specifying in
detail the particulars of the conduct of Employee deemed by the Company
to justify such termination for Cause.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b. Employee's employment
may be terminated by the Company without Cause at any time, effective upon
the giving to Employee of a written notice of termination specifying that
such termination is without Cause.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; c. Employee may terminate
his employment with the Company at any time.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; d. Upon a termination by
the Company of Employee's employment for Cause during the Term, but prior
to a Change in Control or more than 24 months after a Change in Control,
Employee shall be entitled only to the payments specified in Section 3.a.
below. Upon a termination by the Company of Employee's employment without
Cause during the Term, but prior to a Change in Control or more than 24
months after a Change in Control, Employee shall be entitled to all of
the payments and benefits specified in Section 3 below.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; e. If Employee voluntarily
terminates his employment during the Term, but prior to a Change in Control
or more than 24 months after a Change in Control, he shall notify Employer
in writing if he believes the termination is for Good Reason. Employee
shall set forth in reasonable detail why Employee believes there is Good
Reason. If such termination is for Good Reason, Employee shall be entitled
to all of the payments and benefits specified in Section 3 below. If such
voluntary termination is for other than Good Reason, then Employee shall
be entitled only to the payments specified in Section 3.a. below.</blockquote>

<p><br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
3. <b>Payments and Benefits Upon Termination During Term -- Change in Control
Severance Inapplicable</b>. To the extent provided in Section 2 above,
upon termination of his employment during the Term, but prior to a Change
in Control or more than 24 months after a Change in Control, Employee shall
receive the following payments and benefits:
<blockquote>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a. The Company shall
pay to Employee on the Termination Date (i) the full base salary earned
by employee through the Termination Date and unpaid at the Termination
Date, plus (ii) credit for any vacation earned by Employee but not taken
at the Termination Date, plus (iii) all other amounts earned by Employee
and unpaid as of the Termination Date.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b. The Company shall continue
to pay to Employee his base monthly salary at the highest rate in effect
at any time during the twelve months immediately preceding the Termination
Date (including his targeted bonus in the current year) for the twelve
months succeeding his Termination Date. Such amounts shall be paid in accordance
with the Company's regular pay period policy for its employees.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; c. The Company, at its expense,
shall provide to Employee for a period of twelve months after the Termination
Date medical and/or dental coverage under the medical and dental plans
maintained by the Company. Upon Employee's re-employment during such period,
to the extent covered by the new Employer's Plan, coverage under the Company's
plan shall lapse. Additionally, the Company shall make a cash lump sum
payment in an amount equal to the sum of (i) and (ii) below:
<br>&nbsp;
<blockquote>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(i) The fair market value (determined as of the Termination Date) of that
number of shares of non-vested restricted stock of the Company held by
the Employee which would have vested within the twelve-month period following
the Employee's Termination Date had the Employee remained employed with
the Company; plus
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii)
With respect to each non-vested option to purchase Company stock held by
the Employee which would have vested within the twelve-month period following
the Employee's Termination Date had the Employee remained employed with
the Company, the excess, if any, of the fair market value (determined as
of the Termination Date) of the Company stock subject to such option over
the exercise price of such option.</blockquote>
Employee's participation in and/or coverage under all other employee benefit
plans, programs or arrangements sponsored or maintained by the Company
shall cease effective as of the Termination Date.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; d. The Company shall pay
the reasonable costs of outplacement services selected by the Company.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; e. For purposes of determining
Employee's benefit under the Brown Shoe Company, Inc. Supplemental Employment
Retirement Plan, additional Credited Service shall be credited to the Employee's
actual or deemed Credited Service in an amount equal to the period during
which Employee is entitled to receive payments under Section 3.b. above.</blockquote>
4. <b>Termination Within 24 Months After a Change in Control Which Occurs
During the Term.</b>
<blockquote>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a. Employee's employment
may be terminated by the Company for Cause at any time, effective upon
the giving to Employee of written notice of termination specifying in detail
the particulars of the conduct of Employee deemed by the Company to justify
such termination for Cause.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b. Employee's employment
may be terminated by the Company without Cause at any time, effective upon
the giving to Employee of a written notice of termination specifying that
such termination is without Cause.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; c. Employee may terminate
his employment with the Company at any time.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; d. Upon a termination by
the Company of Employee's employment for Cause within 24 months after a
Change in Control which occurs during the Term, Employee shall be entitled
only to the payments specified in Section 5.a. below. Upon a termination
by the Company of Employee's employment without Cause within 24 months
after a Change in Control which occurs during the Term, Employee shall
be entitled to all of the payments and benefits specified in Section 5
below.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; e. If Employee voluntarily
terminates his employment within 24 months after a Change in Control which
occurs during the Term, he shall notify the Company in writing if he believes
the termination is for Good Reason. Employee shall set forth in reasonable
detail why Employee believes there is Good Reason. If such termination
is for Good Reason, Employee shall be entitled to all of the payments and
benefits specified in Section 5 below. If such voluntary termination is
for other than Good Reason, then Employee shall be entitled only to the
payments specified in Section 5.a. below.</blockquote>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
5. <b>Payments and Benefits Upon Termination Within 24 Months after a Change
in Control Which Occurs During Term</b>. To the extent provided in 4 above,
upon termination of his employment within 24 months after a Change in Control
which occurs during the Term, Employee shall receive the following payments
and benefits:
<blockquote>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a. The Company shall
pay to Employee on the Termination Date (i) the full base salary earned
by employee through the Termination Date and unpaid at the Termination
Date, plus (ii) credit for any vacation earned by Employee but not taken
at the Termination Date, plus (iii) all other amounts earned by Employee
and unpaid as of the Termination Date.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b. The Company shall pay
to Employee in a lump sum not later than 30 days after his Termination
Date an amount equal to 300 percent of the sum of (i) his base annual salary
at the highest rate in effect at any time during the twelve months immediately
preceding the Termination Date, and (ii) his targeted bonus for the current
year. In addition, the Company shall pay to Employee his targeted bonus
payment for the year of termination prorated to the Termination Date.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; c. The Company, at its expense,
shall provide to Employee for a period of thirty-six months after the Termination
Date medical and/or dental coverage under the medical and dental plans
maintained by the Company. Upon Employee's re-employment during such period,
to the extent covered by the new employer's plan, coverage under the Company's
plan shall lapse. Employee's participation in and/or coverage under all
other employee benefit plans, programs or arrangements sponsored or maintained
by the Company shall cease effective as of the Termination Date.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; d. The Company shall pay
the reasonable costs of outplacement services selected by the Company.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; e. For purposes of determining
Employee's benefit under the Brown Shoe Company, Inc. Supplemental Employment
Retirement Plan, an additional three years of Credited Service shall be
credited to the Employee's actual or deemed Credited Service.</blockquote>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
6. <b>Mitigation or Reduction of Benefits</b>. Employee shall not be required
to mitigate the amount of any payment provided for in Section 3 or Section
5 by seeking other employment or otherwise. Except as otherwise specifically
set forth herein, the amount of any payment or benefits provided in Section
3 or Section 5 shall not be reduced by any compensation or benefits or
other amounts paid to or earned by Employee as the result of employment
by another employer after the Termination Date or otherwise.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
7. <b>Employee Expenses After Change in Control</b>. If Employee's employment
is terminated by the Company within 24 months after a Change in Control
which occurs during the Term and there is a dispute with respect to this
Agreement, then all Employee's costs and expenses (including reasonable
legal and accounting fees) incurred by Employee (a) to defend the validity
of this Agreement, (b) if Employee's employment has been terminated for
Cause, to contest such termination, (c) to contest any determinations by
the Company concerning the amounts payable by the Company under this Agreement,
or (d) to otherwise obtain or enforce any right or benefit provided to
Employee by this Agreement, shall be paid by the Company if Employee is
the prevailing party.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
8. <b>Release</b>. Notwithstanding anything to the contrary stated in this
Agreement, no benefits will be paid pursuant to Sections 3 and 5 except
under Sections 3.a. and 5.a. prior to execution by Employee of a release
to the Company in the form attached as Exhibit A.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
9. <b>Covenant Not to Compete</b>. Benefits payable pursuant to Sections
3.b, 3.c, and 3.e are subject to the following restrictions.
<blockquote>a. <b>Post-Termination Restrictions.</b>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; i.
Employee acknowledges that (i) the Company has spent substantial money,
time and effort over the years in developing and solidifying its relationships
with its customers throughout the world and in developing its Confidential
Information; (ii) under this Agreement, the Company is agreeing to provide
Employee with certain benefits based upon Employee's assurances and promises
contained herein not to divert the Company's customers' goodwill or to
put himself in a position following his employment with Company in which
the confidentiality of Company's Confidential Information might somehow
be compromised.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ii.
Accordingly, Employee agrees that, for twelve (12) months after a Termination
Date described in the second sentence of Section 2.d, Employee will not,
directly or indirectly, on Employee's own behalf or on behalf of any other
person, firm, corporation or entity (whether as owner, partner, consultant,
employee or otherwise):
<blockquote>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A. provide any executive-
or managerial-level services in the shoe industry in the United States
in competition with the Company, for any Competitor;
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; B. hold any executive- or
managerial-level position with any Competitor in the United States;
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; C. engage in any research
and development activities or efforts for a Competitor, whether as an employee,
consultant, independent contractor or otherwise, to assist the Competitor
in competing in the shoe industry in the United States;
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; D. cause or attempt to cause
any Customer to divert, terminate, limit, modify or fail to enter into
any existing or potential relationship with the Company;
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; E. cause or attempt to cause
any shoe supplier or manufacturer of the Company to divert, terminate,
limit, modify or fail to enter into any existing or potential relationship
with the Company; and
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F. solicit, entice, employ
or seek to employ, in the shoe industry, any executive- or managerial-level
employee of, or any consultant or advisor to, the Company.</blockquote>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b. <b>Acknowledgment Regarding
Restrictions</b>. Employee recognizes and agrees that the restraints contained
in Section 9.a. (both separately and in total) are reasonable and should
be fully enforceable in view of the high-level positions Employee has had
with the Company, the national and international nature of both the Company's
business and competition in the shoe industry, and the Company's legitimate
interests in protecting its Confidential Information and its customer goodwill
and relationships. Employee specifically hereby acknowledges and confirms
that he is willing and intends to, and will, abide fully by the terms of
Section 9.a. of this Agreement. Employee further agrees that the Company
would not have adequate protection if Employee were permitted to work for
its competitors in violation of the terms of this Agreement since the Company
would be unable to verify whether (i) its Confidential Information was
being disclosed and/or misused, and (ii) Employee was involved in diverting
or helping to divert the Company's customers and/or its customer goodwill.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; c. <b>Company's Right to
Injunctive Relief.</b> In the event of a breach or threatened breach of
any of Employee's duties and obligations under the terms and provisions
of Section 9.a. of this Agreement, the Company shall be entitled, in addition
to any other legal or equitable remedies it may have in connection therewith
(including any right to damages that it may suffer), to temporary, preliminary
and permanent injunctive relief restraining such breach or threatened breach.
Employee hereby expressly acknowledges that the harm which might result
to Company's business as a result of noncompliance by Employee with any
of the provisions of Section 9.a. would be largely irreparable. Employee
specifically agrees that if there is a question as to the enforceability
of any of the provisions of Section 9.a. hereof, Employee will not engage
in any conduct inconsistent with or contrary to such Section until after
the question has been resolved by a final judgment of a court of competent
jurisdiction. Employee undertakes and agrees that if Employee breaches
or threatens to breach the Agreement, Employee shall be liable for any
attorneys' fees and costs incurred by Company in enforcing its rights hereunder.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; d. <b>Employee Agreement
to Disclose this Agreement. </b>Employee agrees to disclose, during the
twelve-month period following a Termination Date described in the second
sentence of Section 2.d, the terms of this Section 9 to any potential future
employer.</blockquote>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
10. <b>Confidential Information</b>. The Employee acknowledges and confirms
that certain data and other information (whether in human or machine readable
form) that comes into his possession or knowledge (whether before or after
the date of this Employment Agreement) and which was obtained from the
Company, or obtained by the Employee for or on behalf of the Company, and
which is identified herein is the secret, confidential property of the
Company (the "Confidential Information"). This Confidential Information
includes, but is not limited to:
<blockquote>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a. lists or other
identification of customers or prospective customers of the Company (and
key individuals employed or engaged by such parties);
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b. lists or other identification
of sources or prospective sources of the Company's products or components
thereof (and key individuals employed or engaged by such parties);
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; c. all compilations of information,
correspondence, designs, drawings, files, formulae, lists, machines, maps,
methods, models, notes or other writings, plans, records, regulatory compliance
procedures, reports, specialized or technical data, schematics, source
code, object code, documentation, and software used in connection with
the development, manufacture, fabrication, assembly, marketing and sale
of the Company's products;
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; d. financial, sales and marketing
data relating to the Company or to the industry or other areas pertaining
to the Company's activities and contemplated activities (including, without
limitation, manufacturing, transportation, distribution and sales costs
and non-public pricing information);
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; e. equipment, materials,
procedures, processes, and techniques used in, or related to, the development,
manufacture, assembly, fabrication or other production and quality control
of the Company's products and services;
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; f. the Company's relations
with its customers, prospective customers, suppliers and prospective suppliers
and the nature and type of products or services rendered to such customers
(or proposed to be rendered to prospective customers);
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; g. the Company's relations
with its employees (including, without limitation, salaries, job classifications
and skill levels); and
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; h. any other information
designated by the Company to be confidential, secret and/or proprietary
(including without limitation, information provided by customers or suppliers
of the Company).</blockquote>
Notwithstanding the foregoing, the term "Confidential Information" shall
not consist of any data or other information which has been made publicly
available or otherwise placed in the public domain other than by the Employee
in violation of this Employment Agreement.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
11. <b>Certain Additional Payments by the Company</b>.
<blockquote>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a. Anything in this
Agreement to the contrary notwithstanding and except as set forth below,
in the event it shall be determined that any payment or distribution by
the Company to or for the benefit of the Employee (whether paid or payable
or distributed or distributable pursuant to the terms of this Agreement
or otherwise, but determined without regard to any additional payments
required under this Section) (a "Payment") would be subject to the excise
tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended
(the "Code"), or any interest or penalties are incurred by the Employee
with respect to such excise tax (such excise tax, together with any such
interest and penalties, are hereinafter collectively referred to as the
"Excise Tax"), then the Employee shall be entitled to receive an additional
payment (a "Gross-Up Payment") in an amount such that after payment by
the Employee of all taxes (including any interest or penalties imposed
with respect to such taxes), including, without limitation, any income
taxes (and any interest and penalties imposed with respect thereto) and
Excise Tax imposed upon the Gross-Up Payment, the Employee retains an amount
of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments.
Notwithstanding the foregoing provisions of this Section 11.a., if it shall
be determined that the Employee is entitled to a Gross-Up Payment, but
that the Payments do not exceed 110 percent of the greatest amount (the
"Reduced Amount") that could be paid to the Employee such that the receipt
of Payments would not give rise to any Excise Tax, then no Gross-Up Payment
shall be made to the Employee, and the Payments, in the aggregate, shall
be reduced to the Reduced Amount.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b. Subject to the provisions
of Section 11.c., all determinations required to be made under this Section
11, including whether and when a Gross-Up Payment is required and the amount
of such Gross-Up Payment and the assumptions to be utilized in arriving
at such determination, shall be made by Ernst &amp; Young or such other
certified public accounting firm as may be designated by the Employee (the
"Accounting Firm") which shall provide detailed supporting calculations
both to the Company and the Employee within 15 business days of the receipt
of notice from the Employee that there has been a Payment, or such earlier
time as is requested by the Company. In the event that the Accounting Firm
is serving as accountant or auditor for the individual, entity or group
effecting the Change of Control, the Employee shall appoint another nationally
recognized accounting firm to make the determinations required hereunder
(which accounting firm shall then be referred to as the Accounting Firm
hereunder). All fees and expenses of the Accounting Firm shall be borne
solely by the Company. Any Gross-Up Payment, as determined pursuant to
this Section 11, shall be paid by the Company to the Employee within five
days of the receipt of the Accounting Firm's determination. Any determination
by the Accounting Firm shall be binding upon the Company and the Employee.
As a result of the uncertainty in the application of Section 4999 of the
Code at the time of the initial determination by the Accounting Firm hereunder,
it is possible that Gross-Up Payments which will not have been made by
the Company should have been made ("Underpayment"), consistent with the
calculations required to be made hereunder. In the event that the Company
exhausts its remedies pursuant to Section 11.c. and the Employee thereafter
is required to make a payment of any Excise Tax, the Accounting Firm shall
determine the amount of the Underpayment that has occurred and any such
Underpayment shall be promptly paid by the Company to or for the benefit
of the Employee.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; c. The Employee shall notify
the Company in writing of any claim by the Internal Revenue Service that,
if successful, would require the payment by the Company of the Gross-Up
Payment. Such notification shall be given as soon as practicable but no
later than ten business days after the Employee is informed in writing
of such claim and shall apprise the Company of the nature of such claim
and the date on which such claim is requested to be paid. The Employee
shall not pay such claim prior to the expiration of the 30-day period following
the date on which the Employee gives such notice to the Company (or such
shorter period ending on the date that any payment of taxes with respect
to such claim is due). If the Company notifies the Employee in writing
prior to the expiration of such period that it desires to contest such
claim, the Employee shall:
<br>&nbsp;
<blockquote>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; i. give the Company
any information reasonably requested by the Company relating to such claim,
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ii. take such action in connection
with contesting such claim as the Company shall reasonably request in writing
from time to time, including, without limitation, accepting legal representation
with respect to such claim by an attorney reasonably selected by the Company,
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; iii. cooperate with the Company
in good faith in order to effectively contest such claim, and
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; iv. permit the Company to
participate in any proceedings relating to such claim;
<p>provided, however, that the Company shall bear and pay directly all
costs and expenses (including additional interest and penalties) incurred
in connection with such contest and shall indemnify and hold the Employee
harmless, on an after-tax basis, for any Excise Tax or income tax (including
interest and penalties with respect thereto) imposed as a result of such
representation and payment of costs and expenses. Without limitation on
the foregoing provisions of this Section 11.c., the Company shall control
all proceedings taken in connection with such contest and, at its sole
option, may pursue or forgo any and all administrative appeals, proceedings,
hearings and conferences with the taxing authority in respect of such claim
and may, at its sole option, either direct the Employee to pay the tax
claimed and sue for a refund or contest the claim in any permissible manner,
and the Employee agrees to prosecute such contest to a determination before
any administrative tribunal, in a court of initial jurisdiction and in
one or more appellate courts, as the Company shall determine; provided,
however, that if the Company directs the Employee to pay such claim and
sue for a refund, the Company shall advance the amount of such payment
to the Employee, on an interest-free basis and shall indemnify and hold
Employee harmless, on an after-tax basis, from any Excise Tax or income
tax (including interest or penalties with respect thereto) imposed with
respect to such advance or with respect to any imputed income with respect
to such advance; and further provided that any extension of the statute
of limitations relating to payment of taxes for the taxable year of the
Employee with respect to which such contested amount is claimed to be due
is limited solely to such contested amount. Furthermore, the Company's
control of the contest shall be limited to issues with respect to which
a Gross-Up Payment would be payable hereunder and the Employee shall be
entitled to settle or contest, as the case may be, any other issue raised
by the Internal Revenue Service or any other taxing authority.</blockquote>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; d. If, after the receipt by
the Employee of an amount advanced by the Company pursuant to Section 11.c.,
the Employee becomes entitled to receive any refund with respect to such
claim, the Employee shall (subject to the Company's complying with the
requirements of Section 11.c.) promptly pay to the Company the amount of
such refund (together with any interest paid or credited thereon after
taxes applicable thereto). If, after the receipt by the Employee of an
amount advanced by the Company pursuant to Section 11.c., a determination
is made that the Employee shall not be entitled to any refund with respect
to such claim and the Company does not notify the Employee in writing of
its intent to contest such denial of refund prior to the expiration of
30 days after such determination, then such advance shall be forgiven and
shall not be required to be repaid and the amount of such advance shall
offset, to the extent thereof, the amount of Gross-Up Payment required
to be paid.</blockquote>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
12. <b>Notice.</b> All notices hereunder shall be in writing and shall
be deemed to have been duly given (a) when delivered personally or by courier,
or (b) on the third business day following the mailing thereof by registered
or certified mail, postage prepaid, or (c) on the first business day following
the mailing thereof by overnight delivery service, in each case addressed
as set forth below:
<blockquote>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a. If to the Company:
<blockquote>&nbsp; Brown Shoe Company, Inc.
<br>&nbsp; 8300 Maryland Avenue
<br>&nbsp; St. Louis, Missouri 63105
<br>&nbsp; Attention: Chief Executive Officer</blockquote>
</blockquote>

<blockquote>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b. If to Employee:
<blockquote>&nbsp; Byron Douglas Norfleet
<br>&nbsp; 1441 Haarman Oak Drive
<br>&nbsp; Chesterfield, MO 63005</blockquote>
</blockquote>
Any party may change the address to which notices are to be addressed by
giving the other party written notice in the manner herein set forth.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
13. <b>Successors; Binding Agreement.</b>
<blockquote>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a. The Company will
require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business
and/or assets of the Company, upon or prior to such succession, to expressly
assume and agree to perform this Agreement in the same manner and to the
same extent that the Company would have been required to perform it if
no such succession had taken place. A copy of such assumption and agreement
shall be delivered to Employee promptly after its execution by the successor.
Failure of the Company to obtain such agreement upon or prior to the effectiveness
of any such succession shall be a breach of this Agreement and shall entitle
Employee to benefits from the Company in the same amounts and on the same
terms as Employee would be entitled hereunder if Employee terminated his
employment for Good Reason. For purposes of the preceding sentence, the
date on which any such succession becomes effective shall be deemed the
Termination Date. As used in this Agreement, "Company" shall mean the Company
as hereinbefore defined and any successor to its business and/or assets
as aforesaid which executes and delivers the agreement provided for in
this Section 13.a. or which otherwise becomes bound by the terms and provisions
of this Agreement by operation of law.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b. This Agreement is personal
to Employee and Employee may not assign or delegate any part of his rights
or duties hereunder to any other person, except that this Agreement shall
inure to the benefit of and be enforceable by Employee's legal representatives,
executors, administrators, heirs and beneficiaries.</blockquote>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
14. <b>Severability.</b> If any provision of this Agreement or the application
thereof to any person or circumstance shall to any extent be held to be
invalid or unenforceable, the remainder of this Agreement and the application
of such provision to persons or circumstances other than those as to which
it is held invalid or unenforceable shall not be affected thereby, and
each provision of this Agreement shall be valid and enforceable to the
fullest extent permitted by law.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
15. <b>Headings.</b> The headings in this Agreement are inserted for convenience
of reference only and shall not in any way affect the meaning or interpretation
of this Agreement.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
16. <b>Counterparts.</b> This Agreement may be executed in one or more
identical counterparts, each of which shall be deemed an original but all
of which together shall constitute one and the same instrument.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
17. <b>Waiver.</b> Neither any course of dealing nor any failure or neglect
of either party hereto in any instance to exercise any right, power or
privilege hereunder or under law shall constitute a waiver of such right,
power or privilege or of any other right, power or privilege or of the
same right, power or privilege in any other instance. Without limiting
the generality of the foregoing, Employee's continued employment without
objection shall not constitute Employee's consent to, or a waiver of Employee's
rights with respect to, any circumstances constituting Good Reason. All
waivers by either party hereto must be contained in a written instrument
signed by the party to be charged therewith, and, in the case of the Company,
by its duly authorized officer.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
18. <b>Entire Agreement.</b> This instrument constitutes the entire agreement
of the parties in this matter and shall supersede any other agreement (including,
but not limited to, the Severance Agreement dated December 1, 1999) between
the parties, oral or written, concerning the same subject matter.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
19. <b>Amendment.</b> This Agreement may be amended only by a writing which
makes express reference to this Agreement as the subject of such amendment
and which is signed by Employee and by a duly authorized officer of the
Company.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
20. <b>Governing Law.</b> In light of Company's and Employee's substantial
contacts with the State of Missouri, the facts that the Company is headquartered
in Missouri and Employee resides in and/or reports to Company management
in Missouri, the parties' interests in ensuring that disputes regarding
the interpretation, validity and enforceability of this Agreement are resolved
on a uniform basis, and Company's execution of, and the making of, this
Agreement in Missouri, the parties agree that: (i) any litigation involving
any noncompliance with or breach of the Agreement, or regarding the interpretation,
validity and/or enforceability of the Agreement, shall be filed and conducted
exclusively in the state or federal courts in St. Louis City or County,
Missouri; and (ii) the Agreement shall be interpreted in accordance with
and governed by the laws of the State of Missouri, without regard for any
conflict of law principles.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
IN WITNESS WHEREOF, Employee and the Company have executed this Agreement
as of the day and year first above written.
<blockquote>
<blockquote>
<blockquote>
<blockquote>
<blockquote>
<blockquote>BROWN SHOE COMPANY, INC.
<p>By:&nbsp; /s/ Michael I. Oberlander
<br>
<hr NOSHADE WIDTH="100%">
<p>EMPLOYEE
<p>By:&nbsp;&nbsp; /s/ Byron Douglas Norfleet
<br>
<hr NOSHADE WIDTH="100%">
<br>Byron Douglas Norfleet</blockquote>
</blockquote>
</blockquote>
</blockquote>
</blockquote>
</blockquote>

<dir>
<dir>&nbsp;</dir>
</dir>

<center>
<hr ALIGN=LEFT NOSHADE WIDTH="100%">
<br>&nbsp;
<p><u>Exhibit A</u>
<p><b><font size=+2>RELEASE</font></b></center>

<p><br>
<br>
<br>
<br>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
RELEASE (the "Release") dated _____________ between Byron Douglas Norfleet
("Employee") and Brown Shoe Company, Inc., a New York corporation (as further
defined in Section 13 of the Severance Agreement, the "Company").
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
WHEREAS, the Company and Employee are parties to a Severance Agreement
dated April 30, 2002 (the "Severance Agreement"), which provides certain
protection to Employee during management transition and thereafter and
in the event there is any change in corporate structure which results in
a change in control of the Company.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
WHEREAS, the execution of this Release is a condition precedent to, and
material inducement to, the Company's provision of certain benefits under
the Severance Agreement;
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
NOW, THEREFORE, the parties hereto agree as follows:
<br>&nbsp;
<blockquote>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1. <b>Mutual Promises.</b> The Company undertakes the obligations contained
in the Severance Agreement, which are in addition to any compensation to
which Employee might otherwise be entitled, in exchange for Employee's
promises and obligations contained herein. The Company's obligations are
undertaken in lieu of any other severance benefits.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.
<b>Release
of Claims; Agreement Not to File Suit</b>.
<blockquote>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a. Employee, for
and on behalf of himself and his heirs, beneficiaries, executors, administrators,
successors, assigns and anyone claiming through or under any of the foregoing,
agrees to, and does, remise, release and forever discharge the Company
and its subsidiaries and affiliates, each of their shareholders, directors,
officers, employees, agents and representatives, and its successors and
assigns (collectively, the "Company Released Persons"), from any and all
matters, claims, demands, damages, causes of action, debts, liabilities,
controversies, judgments and suits of every kind and nature whatsoever,
foreseen or unforeseen, known or unknown, which have arisen or could arise
from matters which occurred prior to the date of this Release, which matters
include without limitation: (i) the matters covered by the Severance Agreement
and this Release, (ii) Employee's employment, and/or termination from employment
with the Company, and (iii) any claims which might otherwise arise in the
future as a result of arrangements or agreements in effect as of the date
of this Release or the continuance of such arrangements and agreements
; provided, however, that this Section 2a shall not apply to any claims
to the payments and benefits specifically provided for in the Severance
Agreement or, subject to the terms of the Severance Agreement, the payments
or benefits to which Employee, by reason of the termination of his employment,
may be entitled under any employee benefit plan (as defined in Section
3(3) of the Employee Retirement Income Security Act of 1974) other than
a severance pay plan.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b. Employee, for and on behalf
of himself and his heirs, beneficiaries, executors, administrators, successors,
assigns, and anyone claiming through or under any of the foregoing, agrees
that he will not file or otherwise submit any charge, claim, complaint,
or action to any agency, court, organization, or judicial forum (nor will
Employee permit any person, group of persons, or organization to take such
action on his behalf) against any Company Released Person arising out of
any actions or non-actions on the part of any Company Released Person arising
before the date of this Release or any action taken after the date of this
Release pursuant to the Severance Arrangement. Employee further agrees
that in the event that any person or entity should bring such a charge,
claim, complaint, or action on his behalf, he hereby waives and forfeits
any right to recovery under said claim and will exercise every good faith
effort to have such claim dismissed.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; c. The charges, claims, complaints,
matters, demands, damages, and causes of action referenced in Sections
2(a) and 2(b) include, but are not limited to: (i) any breach of an actual
or implied contract of employment between Employee and any Company Released
Person, (ii) any claim of unjust, wrongful, or tortuous discharge (including
any claim of fraud, negligence, retaliation for whistleblowing, or intentional
infliction of emotional distress), (iii) any claim of defamation or other
common law action, or (iv) any claims of violations arising under the Civil
Rights Act of 1964, as amended, 42 U.S.C. &sect;2000e <u>et seq</u>., the
Age Discrimination in Employment Act, 29 U.S.C. &sect;621 <u>et seq</u>.,
the Americans with Disabilities Act of 1990, 42 U.S.C. &sect;12101 et seq.,
the Fair Labor Standards Act of 1938, as amended, 29 U.S.C. &sect;201 <u>et
seq</u>., the Rehabilitation Act of 1973, as amended, 29 U.S.C. &sect;701
<u>et
seq</u>., or of the Missouri Human Rights Act, &sect;213.000 R.S. Mo. <u>et
seq.</u>, the Missouri Service Letter Statute, &sect;209.140 R.S. Mo.,
the Wisconsin Fair Employment Act (WFEA), Wis. Stat. &sect;&sect;111.31-111.395,
or any other relevant federal, state, or local statutes or ordinances,
or any claims for pay, vacation pay, insurance, or welfare benefits or
any other benefits of employment with any Company Released Person arising
from events occurring prior to the date of this Release other than those
payments and benefits specifically provided herein.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; d. This Release shall not
affect Employee's right to any governmental benefits payable under any
Social Security or Worker's Compensation law now or in the future.</blockquote>
</blockquote>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
3. <b>Release of Benefit Claims</b>. Employee, for and on behalf of himself
and his heirs, beneficiaries, executors, administrators, successors, assigns
and anyone claiming through or under any of the foregoing, further releases
and waives any claims for pay, vacation pay, insurance or welfare benefits
or any other benefits of employment with any Company Released Person arising
from events occurring prior to the date of this Release other than claims
to the payments and benefits specifically provided for in the Severance
Agreement.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
4. <b>Revocation Period;</b> <b>Knowing and Voluntary Agreement</b>.
<blockquote>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a. Employee acknowledges
that he has been given a period of at least forty-five (45) days to consider
whether or not to accept this Agreement. Furthermore, Employee may revoke
this Agreement for seven (7) days following its execution.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b. Employee represents, declares
and agrees that he voluntarily accepts the payments described above for
the purposes of making a full and final compromise, adjustment and settlement
of all potential claims hereinabove described. Employee hereby acknowledges
that he has been advised of the opportunity to consult an attorney and
that he understands the Release and the effect of signing the Release.</blockquote>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
5. <b>Severability.</b> If any provision of this Release or the application
thereof to any person or circumstance shall to any extent be held to be
invalid or unenforceable, the remainder of this Release and the application
of such provision to persons or circumstances other than those as to which
it is held invalid or unenforceable shall not be affected thereby, and
each provision of this Release shall be valid and enforceable to the fullest
extent permitted by law.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
6. <b>Headings.</b> The headings in this Release are inserted for convenience
of reference only and shall not in any way affect the meaning or interpretation
of this Release.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
7. <b>Counterparts.</b> This Release may be executed in one or more identical
counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
8. <b>Entire Agreement.</b> This Release and Related Severance Agreement
constitutes the entire agreement of the parties in this matter and shall
supersede any other agreement between the parties, oral or written, concerning
the same subject matter.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
9. <b>Governing Law.</b> This Release shall be governed by, and construed
and enforced in accordance with, the laws of the State of Missouri, without
reference to the conflict of laws of such State.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
IN WITNESS WHEREOF, Employee and the Company have executed this Release
as of the day and year first above written.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
BROWN SHOE COMPANY, INC.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
By:
<br>&nbsp;
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
EMPLOYEE
<br>&nbsp;
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
By:
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Byron Douglas Norfleet
<br>&nbsp;
<br>&nbsp;
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