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<SEC-DOCUMENT>0000014707-04-000084.txt : 20040818
<SEC-HEADER>0000014707-04-000084.hdr.sgml : 20040818
<ACCEPTANCE-DATETIME>20040818082430
ACCESSION NUMBER:		0000014707-04-000084
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20040818
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial statements and exhibits
FILED AS OF DATE:		20040818

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:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-02191
		FILM NUMBER:		04983113

	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 SHOE CO INC/
		DATE OF NAME CHANGE:	19990528

	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>8-K
<SEQUENCE>1
<FILENAME>bws8k081804.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<!doctype html public "-//w3c//dtd html 4.0 transitional//en">
<html>
<head>

</head>
<body link="#0000FF">

<hr ALIGN=RIGHT NOSHADE WIDTH="100%">
<center>
<p><b><font size=+2>UNITED STATES</font></b>
<p><b><font size=+2>SECURITIES AND EXCHANGE COMMISSION</font></b>
<p><b><font size=+1>WASHINGTON, D.C. 20549</font></b>
<p>
<hr SIZE=3 NOSHADE WIDTH="38%">
<p><b><font size=+2>FORM 8-K</font></b>
<p><b><font size=+2>CURRENT REPORT</font></b>
<p><font size=+1>Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934</font>
<p><font size=+1>Date of Report (Date of earliest event reported) <b>August
18, 2004</b></font></center>

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

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

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

<tr>
<td VALIGN=TOP COLSPAN="2">
<center><b><font size=+1>New York</font></b>
<br><i><font size=-2>(State or other jurisdiction of incorporation or organization)</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 size=+1>1-2191</font></b>
<br><i><font size=-2>(Commission File Number)</font></i></center>
</td>

<td VALIGN=TOP WIDTH="50%">
<center><b><font size=+1>43-0197190</font></b>
<br><i><font size=-2>(IRS Employer Identification Number)</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 size=+1>8300 Maryland Avenue</font></b>
<br><b><font size=+1>St. Louis, Missouri</font></b>
<br><i><font size=-2>(Address of principal executive offices)</font></i></center>
</td>

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

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

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

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

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

<center>Page 1</center>

<p>
<hr ALIGN=RIGHT NOSHADE WIDTH="100%">
<p><b>Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits.</b>
<dl>
<dd>
</dd>
</dl>

<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td VALIGN=BOTTOM WIDTH="7%">
<div align=right>(c)</div>
</td>

<td VALIGN=BOTTOM WIDTH="15%">Exhibit</td>

<td VALIGN=BOTTOM WIDTH="78%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="7%">&nbsp;</td>

<td VALIGN=TOP WIDTH="15%">&nbsp;</td>

<td VALIGN=TOP WIDTH="78%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="7%">&nbsp;</td>

<td VALIGN=TOP WIDTH="15%">99.1</td>

<td VALIGN=TOP WIDTH="78%">Press Release issued August 18, 2004</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="7%">&nbsp;</td>

<td VALIGN=TOP WIDTH="15%">&nbsp;</td>

<td VALIGN=TOP WIDTH="78%">&nbsp;</td>
</tr>
</table>

<p><b>Item 12. Results of Operations and Financial Condition.</b>
<p>On August 18, 2004, Brown Shoe Company, Inc. (the "Company") issued
a press release (the "Press Release") announcing its results<b> </b>of
operations for the quarter ended July 31, 2004. A copy of the Press Release
is being filed as exhibit 99.1 hereto, and the statements contained therein
are incorporated by reference herein.
<p><font face="CG Times">In accordance with General Instruction B.6. of
Form 8-K, the information contained in Item 12 and the Exhibits attached
hereto shall not be deemed "filed" for purposes of Section 18 of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject
to the liabilities of that section, nor shall they be deemed incorporated
by reference in any filing under the Securities Act of 1933, as amended,
or the Exchange Act, except as shall be expressly set forth by specific
reference in such a filing.</font>
<center>
<p><b><font size=+0>SIGNATURES</font></b></center>

<p><font size=+0>Pursuant to the requirements of the Securities Act of
1934, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.</font>
<br>&nbsp;
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td VALIGN=TOP WIDTH="35%">&nbsp;</td>

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

<td VALIGN=TOP WIDTH="63%"><b>BROWN SHOE COMPANY, INC.</b></td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="35%">&nbsp;</td>

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

<td VALIGN=TOP WIDTH="63%">(Registrant)</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="35%">&nbsp;</td>

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

<td VALIGN=TOP WIDTH="63%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="35%">&nbsp;</td>

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

<td VALIGN=TOP WIDTH="63%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="35%">Date: August 18, 2004</td>

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

<td VALIGN=TOP WIDTH="63%">
<center>/s/ Michael I. Oberlander
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></center>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="35%">&nbsp;</td>

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

<td VALIGN=TOP WIDTH="63%">Michael I. Oberlander
<br>Vice President, General Counsel and Corporate Secretary</td>
</tr>
</table>

<center>
<p>Page 2</center>

<hr ALIGN=RIGHT NOSHADE WIDTH="100%">
<p><br>
<br>
<center>
<p><font face="CG Times"><font size=+0>INDEX TO EXHIBITS</font></font></center>

<br>&nbsp;
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td VALIGN=TOP WIDTH="14%">
<center><b><font face="CG Times">Exhibit No.&nbsp;</font></b></center>
</td>

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

<td VALIGN=TOP WIDTH="83%">
<center><b><font face="CG Times">Description&nbsp;</font></b></center>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="14%">
<center><font face="CG Times">99.1</font></center>
</td>

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

<td VALIGN=TOP WIDTH="83%">
<center><font face="CG Times">Press Release, dated August 18, 2004</font></center>
</td>
</tr>
</table>

<center>
<p>Page 3
<br>
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></center>

</body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>bws8k081804ex99.htm
<DESCRIPTION>PRESS RELEASE
<TEXT>
<!doctype html public "-//w3c//dtd html 4.0 transitional//en">
<html>
<head>

</head>
<body link="#0000FF" vlink="#800080">
<font size=+4>News</font>
<div align=right><b><font size=-1>For Immediate Release</font></b>
<br><b><font size=-1>NYSE: BWS</font></b>
<br><b>Contact: Beth Fagan</b>
<br><b>Vice President, Public Affairs</b>
<br><b>314-854-4093</b></div>

<center><b><u><font size=+0>Brown Shoe Reports Earnings Per Share of $0.41
for Second Quarter 2004</font></u></b></center>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ST.
LOUIS, MO, August 18, 2004 - Brown Shoe Company, Inc. (NYSE: BWS) reported
net earnings of $7,814,000 for the second fiscal quarter ended July 31,
2004, compared to year-ago earnings of $11,556,000, a decrease of 32.4
percent. Earnings per diluted share for the period were $0.41, versus $0.62
per diluted share last year.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated
net sales for the second quarter of 2004 were $458,657,000, compared to
$458,384,000 in last year's second quarter.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For
the first half of fiscal 2004, net earnings were $16,381,000 or $0.86 per
diluted share, down from $20,559,000, or $1.11 per diluted share, the year
before. Sales increased 5.0 percent during the six months to $950,489,000,
compared with $904,828,000 last year.
<p><font size=+0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
"Clearly, we are disappointed in the fact that we were not able to meet
our second quarter expectations and continue the strong momentum we experienced
in the first quarter," said Brown Shoe Chairman and CEO Ron Fromm. "Factors
that negatively impacted the quarter included weakness within our children's
and Bass wholesale segments; Bass transition costs - which are now complete;
and weakness in our Naturalizer Retail segment. Limited availability of
common carrier trucks at the close of our second quarter impacted shipping
and further caused us to fall short of our expectations. Offsetting these
factors were benefits from reduced compensation costs associated with stock-based
and incentive compensation plans. On a positive note, Famous Footwear achieved
its earnings plan for the quarter, but slightly lagged last year due to
a calendar shift in tax-free days and a later start to back-to-school,"
Fromm said.</font>
<p><font size=+0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Brown Shoe maintained its strong balance sheet position. Inventories at
quarter-end are fresh and clean at $453 million, up from $418 million last
year due to higher levels of new back-to-school merchandise, additional
stores at Famous Footwear, and the addition of Bass<i>. </i>The Company's
debt-to-capital ratio at the end of the quarter improved to 25.5 percent
from 29.2 percent at the end of the year-ago quarter.</font>
<center>
<p><font size=+0>Page 1 of 6</font>
<br>
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></center>

<p><b><font size=+0>Second Quarter Retail Results</font></b>
<p><font size=+0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As previously reported, total sales at Famous Footwear, the company's 915-store
family footwear chain, were $269,812,000 for the quarter, versus $268,931,000
for the same 13-week period last year. Same-store sales for the period
were down 2.5 percent, reflecting lower traffic counts, however gross margin
rates continued to improve and were higher than last year by 80 basis points.
Operating earnings for the chain declined slightly to $12,631,000, versus
year-ago operating earnings of $12,904,000.</font>
<p><font size=+0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Naturalizer Retail, the company's 380-store chain selling the Naturalizer
brand of women's shoes in both the U.S. and Canada, posted combined second
quarter sales of $48,264,000, compared to $49,673,000 for the same period
last year. Combined same-store sales decreased 3.9 percent during the quarter:
Same-store sales for the 209 U.S.-based stores decreased 3.0 percent, and
for the 171 Canadian stores, same-store sales decreased 5.4 percent. The
operating loss for the chain was $2,551,000 for the quarter, compared to
an operating loss of $1,012,000 in the year-ago quarter, primarily due
to the lackluster performance of seasonal footwear, lower margins and higher
markdowns in Canada, and a difficult outlet store business in the U.S.</font>
<p><font size=+0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Year-to-date, Famous Footwear has opened 38 new stores and closed 16 stores;
Naturalizer U.S. has opened six new stores and closed five; and Naturalizer
Canada has opened three new stores and closed six.</font>
<p><b><font size=+0>Second Quarter Wholesale Results</font></b>
<p><font size=+0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Wholesale sales for the quarter were $136,886,000, compared to $137,903,000
last year. Operating earnings for the wholesale businesses were $8,963,000,
compared to $12,594,000 for the prior-year quarter, a decrease of 28.8
percent, due primarily to lower sales in the children's footwear business
and lower-than-expected sales and margins in the Bass business, as well
as costs of $1.5 million associated with the transition of this business
into the Brown Shoe model.</font>
<p><font size=+0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
While wholesale sales for Naturalizer and LifeStride were down slightly
versus the year ago quarter, both brands gained market share in the department
store channel as measured by NPD. For the five months ended June 30, Naturalizer
was the No. 2 brand in U.S. department stores and LifeStride the No. 9
brand on a dollars basis. Sales gains were achieved by the Company's Carlos
by Carlos Santana brand, which quadrupled its sales versus last year, and
the Dr. Scholl's business.</font>
<p><font size=+0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At the end of the quarter, unshipped wholesale orders were up 13 percent
versus quarter-end last year, including 5 percent associated with the Bass
brand<i>.</i></font>
<center>
<p>Page 2 of 6
<br>
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></center>

<p><b><font size=+0>Forward-Looking Guidance:</font></b>
<p><font size=+0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
"Looking ahead," Fromm said, "we already have undertaken a number of initiatives
aimed at improving results within each of our weaker businesses. At the
same time, we believe we have a competitive plan in place for back-to-school
at Famous Footwear. On the wholesale side, our outlook is improving. In
total, we remain focused and committed to building a portfolio of premier
brands with high consumer preference at retail, utilizing our great talent
and stylish assortments supported by superior execution. We believe this
strategy will position us to gain market share in the footwear industry
going forward."</font>
<p><font size=+0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Due to the late start of the back-to-school period and numerous calendar
shifts in tax-free sales days, the back-to-school season has opened at
a slower pace, with sales and gross margin dollars mixed by market, but
generally lagging expectations. Because a disproportionate amount of sales
and earnings come from its Famous Footwear chain during this important
period - as compared to other quarters during the year - the Company believes
it prudent to wait until the back-to-school season develops before providing
earnings guidance for the third quarter.</font>
<p><b><font size=+0>Second Quarter Conference Call</font></b>
<p><font size=+0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Brown Shoe will hold a conference call to discuss second quarter results
today at <b>9:00 a.m. Eastern Time </b>(Wednesday, August 18). While the
question-and-answer session of the call will be limited to institutional
analysts and investors, retail brokers and individual investors are invited
to attend via a live web-cast at www.fulldisclosure.com (at the website,
type in the BWS ticker symbol to locate the broadcast) or go to http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=BWS&amp;script=1010&amp;ite.</font>
<p><b><font size=-2><i>Safe Harbor Statement Under the Private Securities
Litigation Reform Act of 1995</i>: </font></b><font size=-2>This press
release contains certain forward-looking statements, including without
limitation, the statements under the caption "Forward-Looking Guidance."
Such statements are subject to various risks and uncertainties that could
cause actual results to differ materially. These include (i) general economic
conditions and the consumer's preferences and purchasing patterns, which
may be influenced by consumers' disposable income; (ii) the uncertainties
of currently pending litigation; (iii) intense competition within the footwear
industry; and (iv) political and economic conditions or other threats to
continued and uninterrupted flow of inventory from Brazil and China, where
the Company relies heavily on third-party manufacturing facilities for
a significant amount of its inventory. The Company's reports to the Securities
and Exchange Commission contain detailed information relating to such factors.
The Company does not undertake any obligation or plan to update these forward-looking
statements, even though its situation may change.</font>
<p><font size=-2><b>Brown Shoe</b> is a $1.8 billion footwear company with
worldwide operations. The Company operates the 900-store Famous Footwear
chain, which sells <i>brand name shoes for the family</i>. It also operates
400 Naturalizer stores in the U.S. and Canada that sell the Naturalizer
brand of shoes and accessories. Brown Shoe, through its Wholesale divisions,
owns and markets leading footwear brands including Naturalizer, LifeStride,
Connie and Buster Brown; it also markets licensed brands including Dr.
Scholl's, Bass and Carlos by Carlos Santana for adults, and Barbie, Superman,
Supergirl, Looney Tunes, AstroBoy and Disney character footwear for children.
Brown Shoe press releases are available on the Company's web site at www.borwnshoe.com.</font>
<center>
<p>Page 3 of 6
<br>
<hr ALIGN=RIGHT NOSHADE WIDTH="100%">
<p><b>BROWN SHOE COMPANY, INC.</b>
<br><b>CONDENSED CONSOLIDATED BALANCE SHEETS</b>
<br>(Unaudited)</center>

<p><i>(Thousands)</i>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" BORDERCOLOR="#008000" >
<tr>
<td VALIGN=TOP WIDTH="64%">&nbsp;</td>

<td VALIGN=TOP COLSPAN="2" WIDTH="17%">
<center><font size=+0>July 31,</font>
<br><font size=+0>2004</font>
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></center>
</td>

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

<td VALIGN=TOP COLSPAN="2" WIDTH="17%">
<center><font size=+0>August 2,&nbsp;</font>
<br><font size=+0>2003</font>
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></center>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%"><u><font size=+0>ASSETS</font></u></td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">&nbsp;</td>

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

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%">&nbsp;</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">&nbsp;</td>

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

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%"><font size=+0>Cash and Cash Equivalents</font></td>

<td VALIGN=TOP WIDTH="4%"><font size=+0>$</font></td>

<td VALIGN=TOP WIDTH="13%">
<div align=right><font size=+0>71,478</font></div>
</td>

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

<td VALIGN=TOP WIDTH="4%"><font size=+0>$</font></td>

<td VALIGN=TOP WIDTH="13%">
<div align=right><font size=+0>50,406</font></div>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%"><font size=+0>Receivables, Net</font></td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right><font size=+0>83,938</font></div>
</td>

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

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right><font size=+0>75,271</font></div>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%"><font size=+0>Inventories, Net</font></td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right><font size=+0>453,016</font></div>
</td>

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

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right><font size=+0>417,731</font></div>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%"><font size=+0>Other Current Assets</font></td>

<td VALIGN=BOTTOM WIDTH="4%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="13%">
<div align=right><font size=+0>21,718</font>
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></div>
</td>

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

<td VALIGN=BOTTOM WIDTH="4%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="13%">
<div align=right><font size=+0>26,405</font>
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></div>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%"><font size=+0>Total Current Assets</font></td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right><font size=+0>630,150</font></div>
</td>

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

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right><font size=+0>569,813</font></div>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%">&nbsp;</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">&nbsp;</td>

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

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%"><font size=+0>Property, Plant and Equipment
- - Net</font></td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right><font size=+0>86,973</font></div>
</td>

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

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right><font size=+0>87,599</font></div>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%"><font size=+0>Other Assets</font></td>

<td VALIGN=BOTTOM WIDTH="4%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="13%">
<div align=right><font size=+0>105,656</font>
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></div>
</td>

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

<td VALIGN=BOTTOM WIDTH="4%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="13%">
<div align=right><font size=+0>102,882</font>
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></div>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%">&nbsp;</td>

<td VALIGN=TOP WIDTH="4%"><font size=+0>$</font>
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="13%">
<div align=right><font size=+0>822,779</font>
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></div>
</td>

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

<td VALIGN=TOP WIDTH="4%"><font size=+0>$</font>
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="13%">
<div align=right><font size=+0>760,294</font>
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></div>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%">&nbsp;</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">&nbsp;</td>

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

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%"><u><font size=+0>LIABILITIES AND SHAREHOLDERS'
EQUITY</font></u></td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">&nbsp;</td>

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

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%">&nbsp;</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">&nbsp;</td>

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

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%"><font size=+0>Notes Payable</font></td>

<td VALIGN=TOP WIDTH="4%"><font size=+0>$</font></td>

<td VALIGN=TOP WIDTH="13%">
<div align=right><font size=+0>27,500</font></div>
</td>

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

<td VALIGN=TOP WIDTH="4%"><font size=+0>$</font></td>

<td VALIGN=TOP WIDTH="13%">
<div align=right><font size=+0>19,000</font></div>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%"><font size=+0>Trade Accounts Payable</font></td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right><font size=+0>192,243</font></div>
</td>

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

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right><font size=+0>174,541</font></div>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%"><font size=+0>Accrued Expenses</font></td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right><font size=+0>96,420</font></div>
</td>

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

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right><font size=+0>90,653</font></div>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%"><font size=+0>Income Taxes</font></td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right><font size=+0>7,377</font></div>
</td>

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

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right><font size=+0>12,422</font></div>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%"><font size=+0>Current Maturities of Long-Term
Debt</font></td>

<td VALIGN=BOTTOM WIDTH="4%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="13%">
<div align=right><font size=+0>-</font>
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></div>
</td>

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

<td VALIGN=BOTTOM WIDTH="4%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="13%">
<div align=right><font size=+0>10,000</font>
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></div>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%"><font size=+0>Total Current Liabilities</font></td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right><font size=+0>323,540</font></div>
</td>

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

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right><font size=+0>306,616</font></div>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%">&nbsp;</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">&nbsp;</td>

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

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%"><font size=+0>Long-Term Debt and Capitalized
Leases</font></td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right><font size=+0>100,000</font></div>
</td>

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

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right><font size=+0>103,494</font></div>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%"><font size=+0>Other Liabilities</font></td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right><font size=+0>27,373</font></div>
</td>

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

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right><font size=+0>29,411</font></div>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%"><font size=+0>Shareholders' Equity</font></td>

<td VALIGN=BOTTOM WIDTH="4%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="13%">
<div align=right><font size=+0>371,866</font>
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></div>
</td>

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

<td VALIGN=BOTTOM WIDTH="4%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="13%">
<div align=right><font size=+0>320,773</font>
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></div>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%">&nbsp;</td>

<td VALIGN=TOP WIDTH="4%"><font size=+0>$</font>
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="13%">
<div align=right><font size=+0>822,779</font>
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></div>
</td>

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

<td VALIGN=TOP WIDTH="4%"><font size=+0>$</font>
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="13%">
<div align=right><font size=+0>760,294</font>
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></div>
</td>
</tr>
</table>

<center>
<p>Page 4 of 6
<br>
<hr ALIGN=RIGHT NOSHADE WIDTH="100%">
<p><b><font size=+0>BROWN SHOE COMPANY, INC.</font></b>
<br><b><font size=+0>CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS</font></b>
<br><font size=+0>(Unaudited)</font></center>

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

<td VALIGN=BOTTOM COLSPAN="5" WIDTH="29%">
<center><font size=+0>Thirteen Weeks Ended</font>
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></center>
</td>

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

<td VALIGN=BOTTOM COLSPAN="6" WIDTH="29%">
<center><font size=+0>Twenty-six Weeks Ended</font>
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></center>
</td>

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

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

<td VALIGN=BOTTOM COLSPAN="5" WIDTH="29%" HEIGHT="2"></td>

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

<td VALIGN=BOTTOM COLSPAN="6" WIDTH="29%" HEIGHT="2"></td>

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

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

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="14%">
<center><font size=+0>July 31,&nbsp;</font>
<br><font size=+0>2004</font>
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></center>
</td>

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

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%">
<center><font size=+0>August 2,&nbsp;</font>
<br><font size=+0>2003</font>
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></center>
</td>

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

<td VALIGN=BOTTOM COLSPAN="3" WIDTH="14%">
<center><font size=+0>July 31,&nbsp;</font>
<br><font size=+0>2004</font>
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></center>
</td>

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

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%">
<center><font size=+0>August 2,&nbsp;</font>
<br><font size=+0>2003</font>
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></center>
</td>

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

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

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="14%">&nbsp;</td>

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

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

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

<td VALIGN=BOTTOM COLSPAN="3" WIDTH="14%">&nbsp;</td>

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

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

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

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

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

<td VALIGN=BOTTOM WIDTH="13%">&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="1%">&nbsp;</td>

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

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

<tr>
<td VALIGN=BOTTOM WIDTH="40%"><font size=+0>Net Sales</font></td>

<td VALIGN=BOTTOM WIDTH="2%"><font size=+0>$</font></td>

<td VALIGN=BOTTOM WIDTH="13%">
<div align=right><font size=+0>458,657</font></div>
</td>

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

<td VALIGN=BOTTOM WIDTH="2%"><font size=+0>$</font></td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font size=+0>458,384</font></div>
</td>

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

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="2%"><font size=+0>$</font></td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font size=+0>950,489</font></div>
</td>

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

<td VALIGN=BOTTOM WIDTH="2%"><font size=+0>$</font></td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font size=+0>904,828</font></div>
</td>

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

<tr>
<td VALIGN=BOTTOM WIDTH="40%"><font size=+0>Cost of Goods Sold</font></td>

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

<td VALIGN=BOTTOM WIDTH="13%">
<div align=right><font size=+0>269,411</font></div>
</td>

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

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

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font size=+0>270,519</font></div>
</td>

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

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

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font size=+0>561,879</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 size=+0>531,836</font></div>
</td>

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

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

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

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

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

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

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

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

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

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

<tr>
<td VALIGN=BOTTOM WIDTH="40%"><font size=+0>Gross Profit</font></td>

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

<td VALIGN=BOTTOM WIDTH="13%">
<div align=right><font size=+0>189,246</font></div>
</td>

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

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

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font size=+0>187,865</font></div>
</td>

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

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

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">
<div align=right><font size=+0>388,610</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 size=+0>372,992</font></div>
</td>

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

<tr>
<td VALIGN=BOTTOM WIDTH="40%"><font size=-2>- % of Sales</font></td>

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

<td VALIGN=BOTTOM WIDTH="13%">
<div align=right><font size=-2>41.3%</font></div>
</td>

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

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

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font size=-2>41.0%</font></div>
</td>

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

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

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">
<div align=right><font size=-2>40.9%</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 size=-2>41.2%</font></div>
</td>

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

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

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

<td VALIGN=BOTTOM WIDTH="13%">&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="1%">&nbsp;</td>

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

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">&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="40%"><font size=+0>Selling &amp; Administrative
Expenses</font></td>

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

<td VALIGN=BOTTOM WIDTH="13%">
<div align=right><font size=+0>175,968</font></div>
</td>

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

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

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font size=+0>169,249</font></div>
</td>

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

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

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">
<div align=right><font size=+0>360,415</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 size=+0>339,039</font></div>
</td>

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

<tr>
<td VALIGN=BOTTOM WIDTH="40%"><font size=-2>- % of Sales</font></td>

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

<td VALIGN=BOTTOM WIDTH="13%">
<div align=right><font size=-2>38.4%</font></div>
</td>

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

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

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font size=-2>36.9%</font></div>
</td>

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

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

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">
<div align=right><font size=-2>37.9%</font></div>
</td>

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

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

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font size=-2>37.5%</font></div>
</td>

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

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

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="13%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

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

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="11%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

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

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

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

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

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="12%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

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

<tr>
<td VALIGN=BOTTOM WIDTH="40%"><font size=+0>Operating Earnings</font></td>

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

<td VALIGN=BOTTOM WIDTH="13%">
<div align=right><font size=+0>13,278</font></div>
</td>

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

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

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font size=+0>18,616</font></div>
</td>

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

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

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">
<div align=right><font size=+0>28,195</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 size=+0>33,953</font></div>
</td>

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

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

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

<td VALIGN=BOTTOM WIDTH="13%">&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="1%">&nbsp;</td>

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

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">&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="40%"><font size=+0>Interest Expense, Net</font></td>

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

<td VALIGN=BOTTOM WIDTH="13%">
<div align=right><font size=+0>1,971</font></div>
</td>

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

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

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font size=+0>2,413</font></div>
</td>

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

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

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">
<div align=right><font size=+0>4,324</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 size=+0>5,223</font></div>
</td>

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

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

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="13%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

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

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="11%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

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

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

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

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

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="12%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

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

<tr>
<td VALIGN=BOTTOM WIDTH="40%"><font size=+0>Earnings Before Income Taxes</font></td>

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

<td VALIGN=BOTTOM WIDTH="13%">
<div align=right><font size=+0>11,307</font></div>
</td>

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

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

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font size=+0>16,203</font></div>
</td>

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

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

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">
<div align=right><font size=+0>23,871</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 size=+0>28,730</font></div>
</td>

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

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

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

<td VALIGN=BOTTOM WIDTH="13%">&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="1%">&nbsp;</td>

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

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">&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="40%"><font size=+0>Income Tax Provision</font></td>

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

<td VALIGN=BOTTOM WIDTH="13%">
<div align=right><font size=+0>3,493</font></div>
</td>

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

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

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font size=+0>4,647</font></div>
</td>

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

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

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">
<div align=right><font size=+0>7,490</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 size=+0>8,171</font></div>
</td>

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

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

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

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

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

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

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

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

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

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

<tr>
<td VALIGN=BOTTOM WIDTH="40%"><font size=+0>NET EARNINGS</font></td>

<td VALIGN=BOTTOM WIDTH="2%"><font size=+0>$</font></td>

<td VALIGN=BOTTOM WIDTH="13%">
<div align=right><font size=+0>7,814</font></div>
</td>

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

<td VALIGN=BOTTOM WIDTH="2%"><font size=+0>$</font></td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font size=+0>11,556</font></div>
</td>

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

<td VALIGN=BOTTOM WIDTH="2%"><font size=+0>$</font></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">
<div align=right><font size=+0>16,381</font></div>
</td>

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

<td VALIGN=BOTTOM WIDTH="2%"><font size=+0>$</font></td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font size=+0>20,559</font></div>
</td>

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

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

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="14%">
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></td>

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

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

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

<td VALIGN=BOTTOM COLSPAN="3" WIDTH="14%">
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></td>

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

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

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

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

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

<td VALIGN=BOTTOM WIDTH="13%">&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="1%">&nbsp;</td>

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

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">&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="40%"><font size=+0>Basic Net Earnings per Common
Share</font></td>

<td VALIGN=BOTTOM WIDTH="2%"><font size=+0>$</font></td>

<td VALIGN=BOTTOM WIDTH="13%">
<div align=right><font size=+0>.44</font></div>
</td>

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

<td VALIGN=BOTTOM WIDTH="2%"><font size=+0>$</font></td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font size=+0>.66</font></div>
</td>

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

<td ALIGN=LEFT VALIGN=BOTTOM WIDTH="2%">
<div align=right><font size=+0>$</font></div>
</td>

<td ALIGN=LEFT VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">
<div align=right><font size=+0>.92</font></div>
</td>

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

<td VALIGN=BOTTOM WIDTH="2%">
<div align=right><font size=+0>$</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font size=+0>1.17</font></div>
</td>

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

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

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

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

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

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

<td VALIGN=BOTTOM WIDTH="11%">
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></td>

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

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

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

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

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

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

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

<tr>
<td VALIGN=BOTTOM WIDTH="40%"><font size=+0>Diluted Net Earnings per Common
Share</font></td>

<td VALIGN=BOTTOM WIDTH="2%"><font size=+0>$</font></td>

<td VALIGN=BOTTOM WIDTH="13%">
<div align=right><font size=+0>.41</font></div>
</td>

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

<td VALIGN=BOTTOM WIDTH="2%"><font size=+0>$</font></td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right><font size=+0>.62</font></div>
</td>

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

<td VALIGN=BOTTOM WIDTH="2%">
<div align=right><font size=+0>$</font></div>
</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">
<div align=right><font size=+0>.86</font></div>
</td>

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

<td VALIGN=BOTTOM WIDTH="2%">
<div align=right><font size=+0>$</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font size=+0>1.11</font></div>
</td>

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

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

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="14%">
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></td>

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

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

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

<td VALIGN=BOTTOM COLSPAN="3" WIDTH="14%">
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></td>

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

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

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

<tr>
<td VALIGN=BOTTOM WIDTH="40%"><font size=+0>Basic Number of Shares</font></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="14%">
<div align=right><font size=+0>17,921</font></div>
</td>

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

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%">
<div align=right><font size=+0>17,631</font></div>
</td>

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

<td VALIGN=BOTTOM COLSPAN="3" WIDTH="14%">
<div align=right><font size=+0>17,881</font></div>
</td>

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

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%">
<div align=right><font size=+0>17,570</font></div>
</td>

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

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

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="14%">&nbsp;</td>

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

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

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

<td VALIGN=BOTTOM COLSPAN="3" WIDTH="14%">&nbsp;</td>

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

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

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

<tr>
<td VALIGN=BOTTOM WIDTH="40%"><font size=+0>Diluted Number of Shares</font></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="14%">
<div align=right><font size=+0>18,987</font></div>
</td>

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

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%">
<div align=right><font size=+0>18,532</font></div>
</td>

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

<td VALIGN=BOTTOM COLSPAN="3" WIDTH="14%">
<div align=right><font size=+0>18,953</font></div>
</td>

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

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%">
<div align=right><font size=+0>18,463</font></div>
</td>

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

<center>
<p>Page 5 of 6
<br>
<hr ALIGN=RIGHT NOSHADE WIDTH="100%">
<p><b><font size=+0>BROWN SHOE COMPANY, INC.</font></b>
<br><b><font size=+0>CONDENSED CONSOLIDATED CASH FLOWS</font></b>
<br><font size=+0>(Unaudited)</font></center>

<p><i><font size=+0>(Thousands)</font></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 size=+0>Twenty-six 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 NOSHADE WIDTH="100%"></td>

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

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font size=+0>&nbsp;</font></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="16%">
<center><font size=+0>July 31,</font>
<br><font size=+0>2004</font>
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></center>
</td>

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

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="14%">
<center><font size=+0>August 2,&nbsp;</font>
<br><font size=+0>2003</font>
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></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"></td>

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

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="14%" HEIGHT="2"></td>

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

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font size=+0>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 size=+0>&nbsp;&nbsp; Net earnings</font></td>

<td VALIGN=BOTTOM WIDTH="2%"><font size=+0>$</font></td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font size=+0>16,381</font></div>
</td>

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

<td VALIGN=BOTTOM WIDTH="2%"><font size=+0>$</font></td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font size=+0>20,559</font></div>
</td>

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

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font size=+0>&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 size=+0>&nbsp;&nbsp;&nbsp; Net 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 size=+0>&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 size=+0>11,787</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 size=+0>12,470</font></div>
</td>

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

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font size=+0>Share based compensation expense</font></td>

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

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font size=+0>711</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 size=+0>1,867</font></div>
</td>

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

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font size=+0>Tax benefit related to share-based
plans</font></td>

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

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font size=+0>709</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 size=+0>-</font></div>
</td>

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

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font size=+0>Loss on disposal or impairment
of facilities and equipment</font></td>

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

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font size=+0>1,003</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 size=+0>1,533</font></div>
</td>

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

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font size=+0>Provision (recoveries) for
losses on accounts receivable</font></td>

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

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font size=+0>(344</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="8%"><font size=+0>)</font></td>

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

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font size=+0>150</font></div>
</td>

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

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font size=+0>&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 size=+0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Receivables</font></td>

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

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font size=+0>(1,664</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="8%"><font size=+0>)</font></td>

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

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font size=+0>7,065</font></div>
</td>

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

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font size=+0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Inventories</font></td>

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

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font size=+0>(76,806</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="8%"><font size=+0>)</font></td>

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

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font size=+0>(25,147</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%"><font size=+0>)</font></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font size=+0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Prepaid expenses and other current assets</font></td>

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

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font size=+0>(5,830</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="8%"><font size=+0>)</font></td>

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

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font size=+0>(5,427</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%"><font size=+0>)</font></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font size=+0>&nbsp;&nbsp;&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 size=+0>75,279</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 size=+0>33,716</font></div>
</td>

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

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font size=+0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Income taxes</font></td>

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

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font size=+0>4,417</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 size=+0>7,070</font></div>
</td>

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

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font size=+0>&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 size=+0>(645</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="8%"><font size=+0>)</font></td>

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

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font size=+0>542</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 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="14%" HEIGHT="6">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="8%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="12%" HEIGHT="6">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font size=+0>Net cash provided by operating
activities</font></td>

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

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font size=+0>24,998</font></div>
</td>

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

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

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font size=+0>54,398</font></div>
</td>

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

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

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="14%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

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

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="12%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

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

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font size=+0>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 size=+0>&nbsp;&nbsp; Capital expenditures</font></td>

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

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font size=+0>(14,235</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="8%"><font size=+0>)</font></td>

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

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font size=+0>(16,146</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%"><font size=+0>)</font></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font size=+0>&nbsp;&nbsp; Other</font></td>

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

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font size=+0>153</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 size=+0>248</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 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="14%" HEIGHT="6">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="8%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="12%" HEIGHT="6">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font size=+0>Net cash used by investing
activities</font></td>

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

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font size=+0>(14,082</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="8%"><font size=+0>)</font></td>

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

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font size=+0>(15,898</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%"><font size=+0>)</font></td>
</tr>

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

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="14%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

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

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="12%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

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

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font size=+0>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%">&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 size=+0>&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 size=+0>8,000</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 size=+0>(10,000</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%"><font size=+0>)</font></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font size=+0>Repayments for long-term debt</font></td>

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

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font size=+0>-</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 size=+0>(10,000</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%"><font size=+0>)</font></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font size=+0>Debt issuance costs</font></td>

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

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font size=+0>(1,071</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="8%"><font size=+0>)</font></td>

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

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font size=+0>-</font></div>
</td>

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

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font size=+0>&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 size=+0>1,605</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 size=+0>3,342</font></div>
</td>

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

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font size=+0>&nbsp;&nbsp; Dividends paid</font></td>

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

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font size=+0>(3,629</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="8%"><font size=+0>)</font></td>

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

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font size=+0>(3,557</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%"><font size=+0>)</font></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="14%" HEIGHT="6">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="8%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="12%" HEIGHT="6">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font size=+0>Net cash provided (used) by
financing activities</font></td>

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

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font size=+0>4,905</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 size=+0>(20,215</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%"><font size=+0>)</font></td>
</tr>

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

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="14%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

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

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="12%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

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

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font size=+0>Increase in cash and cash equivalents</font></td>

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

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font size=+0>15,821</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 size=+0>18,285</font></div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</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 size=+0>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 size=+0>55,657</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 size=+0>32,121</font></div>
</td>

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

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

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="14%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

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

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="12%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

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

<tr>
<td VALIGN=BOTTOM WIDTH="60%"><font size=+0>Cash and cash equivalents at
end of period</font></td>

<td VALIGN=BOTTOM WIDTH="2%"><font size=+0>$</font></td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right><font size=+0>71,478</font></div>
</td>

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

<td VALIGN=BOTTOM WIDTH="2%"><font size=+0>$</font></td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right><font size=+0>50,406</font></div>
</td>

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

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

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

<td VALIGN=BOTTOM WIDTH="14%">
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></td>

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

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

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

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

<tr>
<td VALIGN=BOTTOM COLSPAN="7">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM COLSPAN="7"><font size=-1>Note: Certain prior period
amounts have been reclassified in the Condensed Consolidated Balance Sheets,
Statements of Earnings, and Cash Flows to conform to current period presentation.
These reclassifications did not affect net earnings.</font></td>
</tr>
</table></center>

<center>
<p>Page 6 of 6
<br>
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></center>

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</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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